BPZ Energy Certifies 60 MMBO of 3P Oil Reserves on Corvina Field

HOUSTON--(BUSINESS WIRE)--BPZ Resources, Inc. (AMEX:BZP) announced today the oil reserves certification by independent reserve engineers Netherland Sewell and Associates, Inc. (NSAI) from the Company’s Block Z-1 Corvina offshore field located in northwest Peru. NSAI’s reserves report certified Proved, Probable, and Possible oil reserves as of February 29, 2008 based on the definitions and guidelines set forth in the 2007 Petroleum Resources Management System approved by the Society of Petroleum Engineers (SPE). The combined total of 3P reserves in Corvina approximates 60 million barrels of oil (Mmbo).

	Oil-in-Place (Mmbo)	Recovery Factor (%)		Reserves (Mmbo)
Proved (1P)	72.0	24.7	%	17.8
Proved + Probable (2P)	147.4	25.6	%	37.8
Proved + Probable + Possible (3P)	147.4	40.6	%	59.8

The Corvina oil reserves were based on data gathered from the four wells drilled to date from the CX-11 platform. Particular attention was paid to the three new wells drilled by the Company that tested oil in sands that could, in the Company’s estimations, form an oil pool covering an area of approximately 2,250 acres. The Proved reserves were based on the oil-in-place found in the area directly delineated by these three oil wells, while the Probable and Possible reserves take into account the oil-in-place in the remaining area of the oil pool where the tested oil sands are expected to also encounter oil up dip. According to NSAI’s report, approximately 24% of the Proved reserves are to be considered Proved Developed reserves. NSAI estimated recovery factors in the range of 25% for the Proved and Probable reserves based on the good reservoir properties found in the first three oil wells; while the Possible reserves were based on a recovery factor of approximately 41% that takes into account optimum recovery as a result of possible strong aquifer support.

In addition, NSAI, using estimates provided by the Company, calculated for each category of reserves the present value of the Future Net Revenue (after deduction for royalty payments, future capital costs, and operating expenses but before consideration of income taxes), using a discount rate of 10% per annum (commonly known as PV-10). The PV-10 value of the combined 3P reserves was estimated to be approximately US$1.9 billion. The value was calculated using a February 27, 2008, Fortis, Suez Blend and Oman crude oil 5 day average price of $93.86 per barrel, which was then adjusted to take into account Corvina’s oil quality.

	Reserves (Mmbo)	PV-10 (million US$)
Proved (1P)	17.8	$	974
Proved + Probable (2P)	37.8	$	1,544
Proved + Probable + Possible (3P)	59.8	$	1,877
Note: PV-10 is a non-GAAP financial measure because it excludes income tax effects. Management believes that the presentation of the non-GAAP financial measure of PV-10 provides useful information to investors because it is widely used by professional analysts and sophisticated investors in evaluating oil and gas companies. PV-10 is not a measure of financial or operating performance under GAAP. The most directly comparable GAAP financial measure is the standardized measure of discounted future net cash flows. PV-10 should not be considered as a substitute for the standardized measure of discounted future net cash flows as defined under GAAP, which is calculated at year end under accounting rules by applying year end prices to only proved reserves.

The Company also requested NSAI to certify oil reserves on the Corvina field under the Securities and Exchange Commission (SEC) definitions and standards which will be included in the Company’s 2007 10-K filing. These definitions and standards may result in estimates of proved reserves which are materially different from those disclosed in this release. The primary reason for the difference will be SEC reserves will only include Proved (1P) volumes as of December 31, 2007, so they will not include data from the 18XD oil well. The Company expects to announce the results of this certification soon. NSAI will provide gas reserves on the same area of the Corvina field following the SEC reserve report.

Manolo Zúñiga, President and Chief Executive Officer, commented, “We are pleased with the initial independent reserves report. This certification is a credit to our subsurface staff. Our next well, the 20XD, will finish delineating the oil-in-place volumes, while the following well, the 15D, will try to target the Probable oil-in-place area. This will complete our initial Corvina drilling campaign prior to moving on to the Albacora oilfield. In the near future we plan to install an additional platform in Corvina which will help us fully develop the oil reserves. The 60 Mmbo of certified 3P reserves make it clear that the Company is on the right path to potentially exceed our initial goal of achieving 50 Mmbo of proved reserves. This is indeed an important step forward for the Company as it now takes us one step closer to closing the 'A' tranche of the IFC senior debt facility of approximately $50 million.”

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 sales of gas into Ecuador for third-party power generation. 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," “will”, "anticipate," “indicate,” "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 our project financing efforts, including final documentation and execution of debt financing documents with IFC, accuracy of well test results, 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.

The U.S. Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only “Proved” reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The Company is prohibited from disclosing other categories of reserves in its SEC filings. We use certain terms in this press release such as “Indicated” "Probable” or “Possible” oil and gas reserves, as well as similar terms such as “barrels of oil per day” and “oil sands” suggesting such reserves, which the SEC’s guidelines strictly prohibit us from including in filings with the SEC. The reserve quantities reflected above were certified by Netherland Sewell and Associates, Inc. using the 1997 definitions and standards of the Society of Petroleum Engineers and World Petroleum Congresses which we are prohibited from disclosing in any of our SEC filings. These definitions and standards may result in estimates of proved reserves which are materially different from those disclosed in the Company’s filings with the SEC. U.S. investors are urged to consider closely the disclosure in our SEC filings, available from us at 580 Westlake Park Blvd., Suite 525 Houston, Texas 77079; Telephone: [phone]. You can also obtain these filings from the SEC by calling 1-800-SEC-0330.