BPZ Energy Closes Block Z-1 Transaction

BPZ Energy Closes Block Z-1 Transaction

HOUSTON, Dec. 27, 2012 (GLOBE NEWSWIRE) -- BPZ Energy (NYSE:BPZ) (BVL:BPZ), an
independent oil and gas exploration and production company, announced that on
December 26, 2012, it closed its contractual arrangements for the sale of a
49% participating interest ("closing") in offshore Block Z-1 to Pacific
Rubiales Energy Corp. (TSX:PRE) (BVC:PREC) (BOVESPA:PREB).

The Board of Directors of Perupetro and the Ministry of Energy and Mines have
approved the plan to modify the Block Z-1 License Contract allowing PRE to
become a party to the amended agreement. Upon receipt of formal approval from
the Ministry of Economy and Finance, the Peruvian Government's Supreme Decree
will be signed, allowing Perupetro to complete the Block Z-1 License Contract
amendment process.

BPZ and PRE have a high degree of confidence in the processes of the Peruvian
Government and agreed that receipt of the Supreme Decree was no longer a
mandatory condition precedent to closing their contractual arrangements
concerning the Z-1 transaction. The closing with PRE will also allow the
transition plan for operations to be accelerated.

President and CEO Manolo Zúñiga commented, "We are pleased with the closing of
the Block Z-1 transaction with PRE before year-end. Our partnership continues
to work diligently to unlock the value of this asset, with development
drilling expected to begin soon at Corvina's CX-15 platform and the 3D seismic
campaign nearing completion."

Transaction Background

Under terms of the agreements signed on April 27, 2012, the Company (together
with its subsidiaries) formed an unincorporated joint venture relationship
with PRE to explore and develop the offshore Block Z-1 located in Peru.
Pursuant to the agreements, PRE agreed to pay $150.0 million for a 49%
participating interest in Block Z-1 and agreed to fund $185.0 million of the
Company's share of capital and exploratory expenditures in Block Z-1 from the
effective date of the SPA, January 1, 2012. 

In December 2012, BPZ and PRE waived and modified certain contract conditions
in order to effect an accelerated closing of the transaction. With this
closing BPZ Energy received the remaining $85 million of cash. Operating
revenues and expenses were also allocated at each partner's respective
participating interest. 

A complete description of the changes to thepreviously announcedcontract
terms will beincluded in the SEC Form 8-K filing.

ABOUT BPZ ENERGY

Houston-based BPZ Energy, which trades as BPZ Resources, Inc. under ticker
symbol BPZ on the New York Stock Exchange and the Bolsa de Valores in Lima, is
an independent oil and gas exploration and production company which has
license contracts for oil and gas exploration and production covering
approximately 2.2 million gross acres in four properties in northwest Peru.In
partnership with Pacific Rubiales Energy Corp., the Company is currently
executing the development in offshore Block Z-1 of the Corvina oil discovery,
as well as the redevelopment of the Albacora oil field.In addition, the
Company is pursuing the exploration of onshore Blocks XIX, XXII and XXIII, in
parallel with the execution of an integrated gas-to-power strategy, which
includes generation and sale of electric power in Peru and the development of
a regional gas marketing strategy.The Company also owns a non-operating net
profits interest in a producing property in southwest Ecuador.Please visit
the Company's website at www.bpzenergy.com for more information.

ABOUT PACIFIC RUBIALES

Pacific Rubiales, a Canadian-based company and producer of natural gas and
heavy crude oil, owns 100 percent of Meta Petroleum Corp., a Colombian oil
operator which operates the Rubiales, Piriri and Quifa oil fields in the
Llanos Basin in association with Ecopetrol, S.A., the Colombian national oil
company, and 100 percent of Pacific Stratus Energy Corp. which operates the La
Creciente natural gas field, and light oil assets from the recent acquisition
of PetroMagdalena Energy Corp.

The Company's common shares trade on the Toronto Stock Exchange and La Bolsa
de Valores de Colombia and as Brazilian Depositary Receipts on Brazil's Bolsa
de Valores Mercadorias e Futuros under the ticker symbols PRE, PREC, and PREB,
respectively.

FORWARD LOOKING STATEMENT

This Press Release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
These forward looking statements are based on our current expectations about
our company, our properties, our estimates of required capital expenditures
and our industry. You can identify these forward-looking statements when you
see us using words such as "will," "expected," "estimated," and "prospective,"
and other similar expressions.These forward-looking statements involve risks
and uncertainties.

Our actual results could differ materially from those anticipated in these
forward looking statements. Such uncertainties include successful installation
of our new platform in Corvina, the success of our project financing efforts,
accuracy of well test results, results of seismic testing, well refurbishment
efforts, successful production of indicated reserves, satisfaction of well
test period requirements, successful installation of required permanent
processing facilities, receipt of all required permits, receipt of final,
formal approval for our joint venture partner in Block Z-1, and the successful
management of our capital expenditures, and other normal business risks. We
undertake no obligation to publicly update any forward-looking statements for
any reason, even if new information becomes available or other events occur in
the future.

CAUTIONARY STATEMENT REGARDING CERTAIN INFORMATION RELEASES

The Company is aware that certain information concerning its operations and
production is available from time to time from Perupetro, an instrumentality
of the Peruvian government, and the Ministry of Energy and Mines ("MEM"), a
ministry of the government of Peru. This information is available from the
websites of Perupetro and MEM and may be available from other official sources
of which the Company is unaware. This information is published by Perupetro
and MEM outside the control of the Company and may be published in a format
different from the format used by the Company to disclose such information, in
compliance with SEC and other U.S. regulatory requirements.

Additionally, the Company's joint venture partner in Block Z-1, Pacific
Rubiales Energy Corp. ("PRE"), is a Canadian public company that is not listed
on a U.S. stock exchange, but is listed on the Toronto (TSX), Bolsa de Valores
de Colombia (BVC) and BOVESPA stock exchanges.As such PRE may be subject to
different information disclosure requirements than the Company.Information
concerning the Company, such as information concerning energy reserves, may be
published by PRE outside of our control and may be published in a format
different from the format the Company uses to disclose such information, in
compliance with SEC and other U.S. regulatory requirements.

The Company provides such information in the format required, and at the times
required, by the SEC and as determined to be both material and relevant by
management of the Company.The Company urges interested investors and third
parties to consider closely the disclosure in our SEC filings, available from
us at 580 Westlake Park Blvd., Suite 525, Houston, Texas 77079; Telephone:
(281) 556-6200. These filings can also be obtained from the SEC via the
internet at www.sec.gov.

CONTACT: INVESTOR AND MEDIA CONTACT:
         A. Pierre Dubois
         Investor Relations & Corporate Communications
         BPZ Energy
         (281) 752-1240
         pierre_dubois@bpzenergy.com