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BPZ Energy Provides Fourth Quarter and Year Ended December 31, 2012 Financial and Operational Results

BPZ Energy Provides Fourth Quarter and Year Ended December 31, 2012 Financial
and Operational Results

HOUSTON, March 7, 2013 (GLOBE NEWSWIRE) -- BPZ Energy (NYSE:BPZ) (BVL:BPZ), an
independent oil and gas exploration and production company, today provided
summary financial and operational results for the fourth quarter and full year
ended December 31, 2012.

Highlights:

  *Closed and transferred a 49% participating interest in Block Z-1 to
    Pacific Rubiales Energy Corp.
  *Finished the year with $126 million of remaining carry at Block Z-1.
  *Ended the year with a cash and cash equivalents balance of $84 million and
    restricted cash balances of $73 million.
  *Reduced bank debt by $47 million and extended the final maturity dates.
  *Lowered general and administrative expenses by 18% as compared to 2011.
  *Achieved the first million barrels of production from the Corvina 21XD
    well at the CX-11 platform.
  *Completed fabrication, delivery and installation of the CX-15 platform at
    Corvina.
  *Began preparations for the new development drilling campaign.
  *Installed and commissioned the water and gas reinjection equipment at
    Albacora.
  *Finished acquisition of 1,600 square kilometers of 3D seismic data on
    Block Z-1, with processing and interpretation ongoing.
  *Continued optimization of Corvina and Albacora field oil production, with
    the workover campaign at Corvina recently reinitiated.
  *Completed 2D and 3D onshore seismic interpretation.
  *Received special recognition as a socially responsible company from Peru
    2021 and the Peruvian National Society of Mining, Petroleum and Energy.

BPZ Energy President and CEO Manolo Zúñiga commented, "During 2012 we achieved
our key objectives which will enable us to return to drilling. These efforts
included finalizing a joint venture partnership to accelerate development of
Block Z-1. With the added operational, technical and financial resources we
are better positioned to execute our business plan."

"Offshore the development drilling campaign at the Corvina CX-15 platform
targeting 12 million of net proved undeveloped reserves will commence soon.
Processing and interpretation of the comprehensive 3D seismic data acquired at
Block Z-1 continues, which will further refine our development drilling
locations and our future offshore exploration campaign. Subject to
confirmation from the new 3D data, we are prepared to return to drilling at
Albacora later this year."

"Onshore we intend to begin an exploration drilling program targeting shallow
oil prospects at Block XXIII and acquire additional seismic data at Blocks XIX
and XXII, subject to receipt of necessary permits," concluded Mr. Zúñiga.

FINANCIAL SUMMARY

The results in this release are impacted by the formation and closing of an
unincorporated joint venture with Pacific Rubiales Energy Corp. (PRE) in 2012
to explore and develop the offshore Block Z-1 located in Peru. Pursuant to the
agreements, PRE paid $150 million for a 49% participating interest in Block
Z-1 and agreed to fund $185 million of BPZ Energy's share of capital and
exploratory expenditures in Block Z-1 from January 1, 2012.On December 14,
2012, Perupetro S.A. approved the terms of the amendment of the license
contract for the sale of 49% of the participating interest in Block Z-1 to PRE
("closing").On December 30, 2012, the Peruvian Government signed the Supreme
Decree for the execution of the amendment to the Block Z-1 license contract.

As a result of the December 14, 2012 closing, the Company's fourth quarter and
full year results reflect respective adjustments to each partner's share of
production, revenues and certain expenses during the period from December 14
to December 31, 2012. 

Fourth Quarter 2012

For the fourth quarter ended December 31, 2012, the Company reported operating
income of $10.2 million and net income of $13.8 million, or $0.12 per share,
compared to an operating loss of $27.9 million and a net loss of $31.7
million, or $0.27 per share, for the same period last year.

Reported operating income for the fourth quarter 2012 compared to the
operating loss for the same period in 2011, was primarily due to the gain on
divestiture before tax of $26.9 million from the sale of a 49% participating
interest in Block Z-1 to PRE. In addition, revenues were lower in the fourth
quarter 2012 compared to the same period in 2011 due to lower oil production
and decreased oil sales volumes. The fourth quarter of 2011 also included
$13.1 million of dry hole costs whereas there were no dry hole costs in the
fourth quarter of 2012.

Full Year 2012

For the twelve months ended December 31, 2012, the Company reported an
operating loss of $28.6 million and a net loss of $39.1 million, or $0.34 per
share, compared to an operating loss of $11.5 million and net loss of $33.8
million, or $0.29 per share, for the same period last year.

The larger operating loss for full year 2012, compared to the same period in
2011, was mainly due to lower revenues of $20.8 million and higher overall
operating expenses, including $31.4 million of higher geological, geophysical
and engineering expenses mainly related to the comprehensive Block Z-1 3D
seismic survey.The larger operating loss was offset by the $26.9 million gain
on divestiture from Block Z-1 and $6.8 million of lower general and
administrative expenses.The 2011 period also included $13.1 million of dry
hole costs whereas there were no dry hole costs in 2012.

EBITDAX

Earnings before interest, income taxes, depreciation, depletion and
amortization and exploration expense ("EBITDAX") was a positive $2.6 million
and $33.3 million for the three and twelve months ended December 31, 2012,
respectively, compared to a negative $1.7 million and a positive $51.8 million
for the same periods last year, respectively.

Included in the release for reference are the Company's Consolidated
Statements of Operations and a reconciliation of EBITDAX (non-GAAP measure) to
U.S. GAAP for the three and twelve months ended December 31, 2012 compared to
the same periods last year.


BPZ Resources,Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
                                                               
                                Three Months          Twelve Months
                                 Ended December 31,    Ended December 31,
                                2012      2011        2012        2011
Net revenue:                                                    
Oil revenue, net                 $25,017 $31,108   $122,708  $139,354
Other revenue                    35       778        250        4,386
                                                               
Total net revenue                25,052   31,886     122,958    143,740
                                                               
Operating and administrative                                    
expenses:
Lease operating expense          14,064   21,610     52,458     50,792
General and administrative       7,299    11,841     31,806     38,600
expense
Geological, geophysical and      7,540    1,025      40,686     9,315
engineering expense
Dry hole costs                   --      13,082     --        13,082
Depreciation, depletion and      11,515   11,133     45,873     38,944
amortization expense
Standby costs                    1,251    1,079      5,340      4,529
Other expense                    --      --        2,266      --
Gain on divestiture              (26,864) --        (26,864)   --
                                                               
Total operating and              14,805   59,770     151,565    155,262
administrative expenses
                                                               
Operating income (loss)          10,247   (27,884)   (28,607)   (11,522)
                                                               
Other income (expense):                                         
Income (loss) from investment in (47)     53         62         412
Ecuador property, net
Interest expense, net           (3,523)  (5,532)    (16,115)   (19,772)
Loss on extinguishment of debt   --      --        (7,318)    --
Loss on derivatives              (319)    (2,045)    (2,610)    (2,046)
Interest income                 22       187        44         453
Other income (expense)           195      734        (159)      1,083
                                                               
Total other expense, net        (3,672)  (6,603)    (26,096)   (19,870)
                                                               
Income (loss) before income      6,575    (34,487)   (54,703)   (31,392)
taxes
                                                               
Income tax expense (benefit)     (7,268)  (2,756)    (15,614)   2,435
                                                               
Net income (loss)               $13,843 $(31,731) $(39,089) $(33,827)
                                                               
Basic net income (loss) per      $0.12   $(0.27)   $(0.34)   $(0.29)
share
Diluted net income (loss) per    $0.12   $(0.27)   $(0.34)   $(0.29)
share
                                                               
Basic weighted average common    115,742   115,484     115,631     115,367
shares outstanding
Diluted weighted average common  115,928   115,484     115,631     115,367
shares outstanding

RESERVE SUMMARY

As previously announced, the 2012 year-end net total proved crude oil reserve
estimate is 16.4 million barrels covering the Company's Corvina and Albacora
fields located in offshore Block Z-1 in Peru.The reserves estimates were
prepared by the Company's independent reserve auditors Netherland, Sewell &
Associates, Inc. (NSAI).

Commodity price of $108.10 per barrel, used in calculating the economic
quantities of reserves, was based on the 12-month unweighted arithmetic
average of the first-day-of-the-month price for the period January 2012
through December 2012.Please also see the Company's SEC filing on Form 10-K
for the year ended December 31, 2012, expected to be filed March 15, 2013, for
additional information.


Net Proved Crude Oil Reserves and Future Net Cash Flows
As of December31, 2012
Based on Average First Day-of-the-Month Fiscal-Year Prices
                                                              
                                                                Estimated
                                                    Actual     Future Capital
                                                                Expenditures
                                                    (In MBbls) (In thousands)
Proved Developed Producing                          1,679     $1,020
Proved Developed Not Producing                      446       102
Proved Undeveloped                                  14,301    80,292
Total                                               16,426    $81,414
                                                              
Standardized Measure of Discounted Future Net Cash   $891,313 
Flows, Discounted @ 10% (in thousands)

PRODUCTION AND REVENUE

Production

All production numbers are "net" in reference to BPZ Energy's 51% working
interest in Block Z-1, unless noted as "gross" which references the 100%
combined BPZ and Pacific Rubiales Energy Corp. gross working interest in Block
Z-1.

For the three months ended December 31, 2012, total production from the
offshore Corvina and Albacora fields in Block Z-1 was approximately 139
thousand barrels of oil (274 thousand barrels gross), or 1,516 barrels of oil
per day (bopd) (2,973 bopd gross) compared to 155 thousand barrels of oil (303
thousand barrels gross), or 1,683 bopd (3,300 bopd gross) for the same period
in 2011.

For the full year ended December 31, 2012, total production from the offshore
Corvina and Albacora fields in Block Z-1 was approximately 618 thousand
barrels of oil (1.2 million barrels gross), or 1,693 bopd(3,320 bopd gross)
compared to 702 thousand barrels of oil (1.4 million barrels gross), or 1,922
bopd (3,770 bopd gross) for the same period in 2011.

The lower oil production in 2012 is due to natural decline in production in
the Corvina field as well as a mechanical problem in one of the gas
reinjection wells that affected Corvina oil production.These items were
partially offset by higher oil production in 2012 from the Albacora field.

Revenue

For the three months ended December 31, 2012, oil revenues net of royalties
decreased by $6.1 million to $25.0 million from $31.1 million for the same
period in 2011.During the recent quarter, net oil sales volumes and realized
pricing per barrel were 245 thousand barrels and $101.93 per barrel, compared
to 311 thousand barrels and $100.16, respectively, for the same quarter last
year.Higher net realized pricing of $1.77 per barrel was partially offset by
lower net oil sales volumes of 66 thousand barrels.

For the year ended December 31, 2012, oil revenues net of royalties decreased
by $16.7 million to $122.7 million from $139.4 million for the same period in
2011.The decrease in net oil revenue is due to a decrease in the amount of
oil sold of 192 thousand barrels, partially offset by a higher oil price
received of $103.31 compared to $101.01 in the same period last year.

EXPENSE SUMMARY

Lease Operating Expense

For the fourth quarter ended December 31, 2012, lease operating expense (LOE)
decreased by $7.5 million to $14.1 million ($57.30 per barrel) compared to
$21.6 million ($69.58 per barrel), for the same period in 2011.The main
reasons for the decrease were lower workover costs of $5.4 million, lower
repairs and maintenance expenses of $0.9 million, lower equipment rental
charges of $0.7 million and net lower other lease operating costs of $0.5
million.

For the year ended December 31, 2012, LOE increased by $1.7 million to $52.5
million ($44.16 per barrel) from $50.8 million ($36.82 per barrel) for the
same period in 2011.The increase in LOE is due to increased repair and
maintenance expenses of $2.1 million, increased lease operating costs
associated with oil inventory of $1.5 million, increased contract services of
$1.4 million and increased net other lease operating costs of $2.6
million.Partially offsetting these increases is a decrease in workover
expenses of $5.9 million.

General and Administrative

For the three months ended December 31, 2012, total general and administrative
(G&A) expenses decreased by $4.5 million to $7.3 million compared with $11.8
million for the same period in 2011.Stock-based compensation expense, a
subset of G&A expenses was $0.8 million for the recent quarter compared to
$0.8 million for the same period in 2011.

G&A expenses, excluding stock based compensation, decreased $4.5 million to
$6.5 million from $11.0 million for the same period in 2011. The $4.5 million
decline is due to a decrease in a receivable reserve of $1.5 million, a
decrease in net legal costs of $1.4 million, lower consulting services of $1.1
million, and a decrease in other G&A costs of $0.5 million.

For the year ended December 31, 2012, G&A expenses decreased by $6.8 million
to $31.8 million from $38.6 million for the same period in 2011. Stock-based
compensation expense, a subset of general and administrative expenses,
decreased by $1.2 million to $2.8 million for the year ended December 31, 2012
from $4.0 million for the same period in 2011.

G&A expenses, excluding stock based compensation, decreased $5.6 million to
$29.0 million from $34.6 million for the same period in 2011.The $5.6 million
decrease is due to lower consulting costs of $1.7 million, a decrease in a
receivable reserve of $1.5 million, lower salary and related costs of $1.4
million, lower legal costs of $0.8 million and lower other general and
administrative costs of $0.2 million.

Geological, Geophysical and Engineering

For the three months ended December 31, 2012, geological, geophysical and
engineering expenses (GG&E) were $7.5 million compared to $1.0 million for the
same period in 2011.

For the year ended December 31, 2012, GG&E expenses increased by $31.4 million
to $40.7 million compared to $9.3 million for the same period in 2011.

The reason for the increase in both periods is due to the comprehensive 3D
seismic acquisition at offshore Block Z-1.

Dry Hole Costs

There were no dry hole costs during 2012.Results for the fourth quarter and
full year 2011 reflect dry hole costs of $13.1 million related to the onshore
PLG-1X exploratory well in Block XIX.

Depreciation, Depletion and Amortization

For the three months ended December 31, 2012, depreciation, depletion and
amortization (DD&A) expense increased to $11.5 million from $11.1 million for
the same period in 2011.

For the twelve months ended December 31, 2012, DD&A expense increased to $45.9
million from $38.9 million for the same period in 2011. For the year ended
December 31, 2012, depletion expense increased $4.7 million to $31.5 million
from $26.8 million during the same period in 2011.The increase is due to a
lower reserve base in the Corvina and Albacora fields in 2012.

For the year ended December 31, 2012, depreciation expense increased $2.3
million to $14.4 million compared to $12.1 million for the same period in 2011
due to increased production and general equipment added in 2011.

Standby Costs

For the year ended December 31, 2012, the Company incurred $5.3 million in
standby rig costs compared to $4.5 million for the same period last year.

During 2012, three rigs were on standby for various periods during the
year.These were the Petrex-18 during the year, and the Petrex-28 and
Petrex-10 for the fourth quarter of 2012.Standby costs were incurred during
2011 for the Petrex-9 rig.

Other Operating Expense

For the year ended December 31, 2012, the Company reported $2.3million of
charges related to requirements for partial abandonment of a pre-existing
platform at the Piedra Redonda field in Block Z-1.The $2.3 million charge is
in addition to the Piedra Redonda platform abandonment costs previously
recorded in the third quarter of 2010.There were no similar expenses incurred
in 2011.

Gain on Divestiture

On April 27, 2012, BPZ Energy and PRE executed a Share Purchase Agreement
which called for BPZ to sell 49% participating interest in Block Z-1 to
Pacific Rubiales for $150.0 million in cash.In December 2012, both parties
closed the transaction and also received a Peruvian Government Supreme Decree
for the execution of the amendment to the Z-1 license contract. 

The $26.9 million gain on divestiture before tax results from the receipt of
net proceeds (the $150.0 million, less transaction costs of $5.7 million)
being greater than the 49% of Block Z-1 net book value of assets sold of
$117.4 million. Tax impacts of this gain are discussed under the Income Taxes
section below.

Other Income (Expense)

For the three months ended December 31, 2012, total other expense was $3.7
million, compared to $6.6 million for the same period in 2011.

During the fourth quarter of 2012, the Company recognized approximately $3.5
million of net interest expense, which includes $3.6 million of capitalized
interest expense.For the same period in 2011, $5.5 million in net interest
expense was recognized which included $3.5 million of capitalized
interest.The decrease of $2.0 million in net interest expense is due to a
lower amount of interest bearing debt outstanding compared to the same period
in 2011.

In connection with obtaining the $40.0 million and the $75.0 million secured
debt facilities in January and July 2011, the Company entered into performance
based arranger fees that the Company accounts for as embedded derivatives.As
a result of the fair value measurement for the three months ended December 31,
2012, the loss associated with the embedded derivatives was $0.3 million,
compared to a $2.1 million loss for the three months ended December 31, 2011.

For full year 2012, total other expense was $26.1 million, compared to $19.9
million during the same period in 2011.

Net interest expense was $16.1 million, which includes $15.6 million of
capitalized interest expense.This compares to $19.8 million in net interest
expense, which included $10.7 million of capitalized interest for the same
period in 2011. The decrease of $3.7 million in net interest expense for
full-year 2012, compared to the same period in 2011, is due to higher
capitalized interest related to the higher construction in progress balances.

The Company also recognized a $7.3 million loss on the extinguishment of debt
during 2012.There was no similar charge in 2011.

As a result of the fair value measurement for full year 2012, the loss
associated with the embedded derivatives described previously was $2.6
million, compared with $2.0 million in 2011.

Income Taxes

For the three months ended December 31, 2012, the Company recognized an income
tax benefit of $7.3 million on income before income taxes of $6.6 million.For
the comparable 2011 period, the Company recognized an income tax benefit of
$2.8 million on a loss before income taxes of $34.5 million.

For the year ended December 31, 2012, the Company recognized income tax
benefit of $15.6 million on loss before income taxes of $54.7 million.This
compares to income tax expense of $2.4 million on a loss before income taxes
of $31.4 million in 2011.

Impacting both the fourth quarter of 2012 and full year 2012 tax expenses was
a net benefit of $4.3 million related to the sale of a 49% participating
interest in Block Z-1. This is a result of a reduction to our deferred tax
expense of $15.7 million partially offset by an estimated current tax expense
on the transaction of some $11.4 million.

LIQUIDITY, CAPITAL EXPENDITURES AND CAPITAL RESOURCES

Liquidity

At December 31, 2012, the Company had cash and cash equivalents of $83.5
million and a working capital surplus of $58.8 million, including $25.1
million of restricted cash in current assets.In addition, the Company held
$47.7 million of restricted cash in non-current accounts.

Capital Expenditures

During the year ended December31, 2012, there were gross capital expenditures
of approximately $88.7million associated with the development initiatives for
the exploration and production of oil and natural gas reserves and the
complementary development of gas-fired power generation of electricity for
sale in Peru. Total capital expenditures included $15.6 million of capitalized
interest.

Included in 2012 capital expenditures, excluding capitalized interest, are
$56.1 million related to costs incurred in the CX-15 platform design,
fabrication, and installation as well as pipeline connections and $4.9 million
for the development of equipment for permanent production facilities at
Albacora.

Other capital expenditures included $5.7 million related to the CX-15
development drilling program and $6.4 million related to other projects,
including artificial lift and lease automatic custody transfer unit to be
located at the Corvina field.

Pacific Rubiales provided funding for capital expenditures for Block Z-1 of
$70.7 million for the year ended December 31, 2012.

Capital Resources

At December 31, 2012, the current and long-term portions of debt were $24.0
million and $197.2 million, respectively, totaling $221.2 million.

Outstanding short-term debt and long-term debt consisted of 2015 Convertible
Notes whose net amount of $153.5 million includes the $170.9 million of
principal reduced by $17.4 million of the remaining unamortized discount.In
addition, there was $35.0 million outstanding under the $75.0 million secured
debt facility and $32.7 million outstanding under the $40.0 million secured
debt facility.

At December 31, 2012 the balance in the debt service reserves accounts for
both the $40.0 million secured debt facility and the $75.0 million secured
debt facility was $32.7 million and $35.0 million respectively.

At December 31, 2012, based on the Company's share of 2012 Block Z-1 capital
and exploratory expenditures credited against the carry amount, and the sale
adjustments, the carry balance available for future capital and exploratory
expenditures in Block Z-1 was $126.3 million.

SUBSEQUENT EVENTS

In January 2013, the Company received a waiver for the fourth quarter minimum
crude oil production requirement under the secured debt facilities.

In March 2013, the Company settled all significant claims brought by the
crewmembers of the Supe, and this matter is now substantially concluded.

RECONCILIATION OF NON-GAAP MEASURE

The table below represents a reconciliation of EBITDAX to the Company's net
income (loss), which is the most directly comparable financial measure
calculated in accordance with generally accepted accounting principles in the
United States of America.

                                Three Months          Twelve Months
                                 Ended December 31,    Ended December 31,
                                2012      2011        2012        2011
                                (in thousands)        (in thousands)
Net income (loss)                $13,843 $(31,731) $(39,089) $(33,827)
Interest expense                 3,523    5,532      16,115     19,772
Loss on extinguishment of debt   --      --        7,318      --
Income tax expense (benefit)     (7,268)  (2,756)    (15,614)   2,435
Depreciation, depletion and      11,515   11,133     45,873     38,944
amortization expense
Geological, geophysical and      7,540    1,025      40,686     9,315
engineering expense
Dry hole costs                   --      13,082     --        13,082
Other expense                    --      --        2,266      --
Loss on derivatives              319      2,045      2,610      2,046
Gain on divestiture              (26,864) --        (26,864)   --
EBITDAX (a)                      $2,608  $(1,670)  $33,301   $51,767

(a) Earnings before interest, income taxes, depletion, depreciation and
amortization, exploration expense and certain non-cash charges ("EBITDAX") is
a non-GAAP financial measure, as it excludes amounts or is subject to
adjustments that effectively exclude amounts, included in the most directly
comparable measure calculated and presented in accordance with GAAP in
financial statements. "GAAP" refers to generally accepted accounting
principles in the United States of America. Non-GAAP financial measures
disclosed by management are provided as additional information to investors in
order to provide them with an alternative method for assessing the Company's
financial condition and operating results. These measures are not in
accordance with, or a substitute for, GAAP, and may be different from or
inconsistent with non-GAAP financial measures used by other companies.
Pursuant to the requirements of Regulation G, whenever the Company refers to a
non-GAAP financial measure, it also presents the most directly comparable
financial measure presented in accordance with GAAP, along with a
reconciliation of the differences between the non-GAAP financial measure and
such comparable GAAP financial measure. Management believes that EBITDAX may
provide additional helpful information with respect to the Company's
performance or ability to meet its debt service and working capital
requirements.

CONFERENCE CALL

The Company will hold a conference call and webcast to discuss fourth quarter
and year-end 2012 financial and operational results on Friday, March 8, 2013,
at 10:00 a.m. CST (11:00 a.m. EST).The live conference call may be accessed
via the Investor Relations, Events & Presentations section of the Company's
website at http://www.bpzenergy.com or by accessing the following dial-in
numbers:

US and Canada Dial-In: (877) 293-5457

International Dial-In: (707) 287-9344

Conference Code: 14992039

A replay of the call will also be available at the Investor Relations section
of the Company's website later in the day.

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.The Company holds a 51% working interest and Pacific Rubiales Energy
Corp. holds a 49% working interest in offshore Block Z-1, for which current
activity includes the development of the Corvina oil discovery, as well as the
redevelopment of the Albacora 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.

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 operation 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, 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 U.S. Securities and Exchange Commission (SEC) permits oil and gas
companies, in their filings with the SEC, to disclose only "reserves" that a
company anticipates to be economically producible by application of
development projects to known accumulations, and there exists or is a
reasonable expectation there will exist, the legal right to produce, or a
revenue interest in the production, installed means of delivering oil and gas
or related substances to market, and all permits and financing required to
implement the project. We are prohibited from disclosing estimates of oil and
gas resources that do not constitute "reserves" in our SEC filings, including
the estimates of contingent and prospective resources included in this press
release. With respect to "probable" and "possible" reserves, we are required
to disclose the relative uncertainty of such classifications of reserves when
they are included in our SEC filings. Further, the reserves estimates
contained in this press release are not designed to be, nor are they intended
to represent, an estimate of the fair market value of the reserves.

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
 
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