BPZ Energy Completes CX11-15D Well in Corvina; Provides Operations Update

HOUSTON--(Business Wire)--
BPZ Resources, Inc. (NYSE Amex: BPZ) today announced that the CX11-15D well has
been completed and placed into the long term testing program currently underway
in the Corvina field located in offshore Block Z-1 in northwest Peru. Seven
separate oil sands were encountered in the well, out of which three intermediate
oil sands have been completed at this time.

Five tests have been conducted on either specific oil sands or commingled ones.
The 15D well also has six gas sands, the lowest gas sand being in close vertical
proximity to the upper oil section. Upon finalization of the tests, the 15D well
was completed with a single production string in three of the oil sands that
were successfully tested, leaving two accessible oil sands to be added at a
later date and the two uppermost oil sands isolated from the producing sands.
The well has been averaging approximately 1,200 barrels of oil per day (bopd).
This initial average production rate for the 15D well is a preliminary number.
The volume could decrease or increase depending on the performance over time of
the well. A mechanical deficiency in the production string allowing gas to flow
into the completion has been identified and partially resolved. Further analysis
is ongoing and will allow the Company to decide what further actions to take on
the well. The Company believes that production rates may increase once the
mechanical deficiency has been successfully resolved, as demonstrated by the
results of the individual tests. The gas sands will remain behind pipe until
needed for the gas-to-power project the Company is pursuing.

It is important to note that this is only the fifth oil well in the Corvina
field, and the independent reserves engineers have estimated that a total of 14
oil wells will be needed to deplete the Proved SEC oil reserves.

Corvina Operations

The Company has begun the CX11-20XD workover which, as previously announced,
will attempt to eliminate gas channeling from gas sands located in close
proximity above the oil zone, which has been limiting oil production from the
well. The 20XD has been shut in for the past few weeks due to the excessive gas
being produced. The well was reopened at a reduced choke three days prior to the
workover to verify its condition and averaged approximately 1,500 bopd due to
the channeled gas. This tested average production rate could decrease or
increase depending on the performance over time of the well. The Company expects
the workover to take approximately one month to complete. During this period of
time the well will be off-line.

In addition, the Company successfully upgraded both production flow lines from
the CX-11 platform in Corvina to the floating production, storage and offloading
barge (FPSO). The new lines have enhanced capacity to handle the combined
production of oil, gas and water from the CX-11 platform in a safe and efficient
manner.

Albacora

The Albacora platform refurbishment is nearing completion and the Company
intends to mobilize the new rig, upon completion of the ongoing acceptance test,
to the platform in late June or early July. The first well (A-14XD) should be
spud toward the end of July or early August. The A-14XD will be a twin to the
discovery well drilled by Tenneco in 1972, which previously tested both oil and
gas in the upper formation in commercial quantities. The Company`s first well in
Albacora will target both the upper and lower formations and has already been
approved by the authorities as an exploration well due to the fact that the
lower formation has not been previously tested, thus meeting the current period
license commitment for the Z-1 Block.

Reserve-Based Credit Facility

Natixis, a major French bank, is continuing its efforts to arrange and
structure, on an exclusive basis, a reserve-based credit facility for the
Company. The facility has been revised to $70 million, inclusive of the $15
million received under the International Finance Corporation (IFC) Senior Note.
The Company expects the initial borrowing capacity available under the facility
to be approximately $50 million, inclusive of the already funded $15 million IFC
Senior Note. Natixis is awaiting confirmation of commitment from a fourth and
final financial institution, which is currently going through its credit
committee approval process, in order to complete the $70 million facility. If
the fourth financial institution commits to the facility, each of the other
three institutions may be required to reaffirm the final structure of the
facility with their credit committees prior to moving on to the closing process.

In addition, closing of the commercial credit facility is dependent upon the
successful negotiation of the related loan documents, and funding is predicated
on the satisfaction of certain customary conditions precedent as will be
specified in the loan documents. Both the Natixis and IFC facilities would be
governed by a single Common Terms Agreement. Terms of the reserve-based credit
facility are expected to be commensurate with similar transactions in the market
at the time of closing. Based on the current activities, the Company would
expect to close this financing during the third quarter of this year. However,
the Company cannot provide assurance that the required level of commitments will
be received or that the financing will close when anticipated, if at all.

Corvina Gas-to-Power Project

After receiving proposals for the Corvina gas-to-power project, management has
selected a potential partner and discussions with that party have been
initiated. The Company currently expects that the process will continue into at
least the early part of the fourth quarter of 2009.

Manolo Zuñiga, President and Chief Executive Officer commented, "The 15D well
has penetrated more oil zones than any other well. However, just like in the
20XD, due to the well`s high angle, we ended up with a gas channeling issue,
thus forcing us to bypass, for now, the two uppermost oil sands. We are
modifying our well design to address the high angle issue in future wells.
Initial production rates may be somewhat restricted by the tubing size used in
the single completion, which means that the 15D may produce at stabilized rates
for a longer period of time than previous wells as it has more sands
contributing. It was important to avoid the gas from the upper gas zones when
completing this well, as we have no immediate use for the gas until the
gas-to-power project is operational. We have moved the rig to begin the workover
on the 20XD, where we need to address a similar gas channeling issue from the
gas zone above the oil zone." Mr. Zuñiga added, "We continue to make good
progress in our operations. Both flow lines are now upgraded and operational,
and we have added a production manifold at the Corvina platform. The Albacora
work is progressing nicely and should allow the Company to have its second rig
working in the third quarter."

"Even though we are in the midst of a tight credit market, progress on our debt
financing is being made. We have had very encouraging feedback from the banks
and institutions involved with the facility and some have already received
credit committee approval to participate with Natixis." Mr. Zuñiga concluded,
"We are moving forward with negotiations on an agreement on the gas-to-power
project. We have selected a potential partner and are expecting to have the
agreement in place by early fourth quarter of this year. This project is
important as it should give BPZ a means to monetize its gas-in-place in
Corvina."

About BPZ Energy

Houston based BPZ Energy is an oil and gas exploration and production company
which has exclusive license contracts for oil and gas exploration and production
covering approximately 2.4 million acres in four properties in northwest Peru.
It also owns a minority working interest in a producing property in southwest
Ecuador. The Company is currently executing the development of the Corvina oil
discovery, the redevelopment of the Albacora oil field, and the exploration of
Block XIX, 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`s website at
www.bpzenergy.com provides additional information about the Company`s plans,
including photographs and other information with respect to its operations.

Forward Looking Statements

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 "expect," "anticipate," "estimate," "believes," "plans" 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 the success of
ourfinancing effort, including securing sufficient commitments, final
documentation and execution of debt financing documents with IFC and Natixis,
accuracy of well test results, satisfaction of well test period requirements,
well refurbishment efforts, successful production of indicated reserves, and the
successful management of our capital development project 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. We caution you not to place undue
reliance on those statements.

BPZ Resources, Inc.
Greg Smith, 281-752-1240
Director of Investor Relations and
Corporate Communications

Copyright Business Wire 2009