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BPZ Energy Provides Fourth Quarter And Year Ended December 31, 2010 Financials And Operations Update

HOUSTON, March 15, 2011 (GLOBE NEWSWIRE) -- BPZ Resources, Inc., d/b/a BPZ Energy, (NYSE:BPZ) announces financial and operating results for the fourth quarter and year ended December 31, 2010. For the fourth quarter the Company reported operating loss of $11.8 million and net loss of $10.1 million or $(0.09) per share and operating loss of $60.8 million and net loss of $59.8 million or $(0.52) per share for full year 2010. The Company had earnings before interest, income taxes, depletion, depreciation and amortization, exploration expense and non-recurring charges (EBITDAX) of $10.9 million and $38.8 million for the fourth quarter and year ended December 31, 2010, respectively. See the reconciliation and rationale for this non-GAAP measure in the table below. The table below illustrates the Company's Consolidated Statements of Operations for the fourth quarter, and year ended as of, December 31, 2010 and 2009.

BPZ Resources, Inc. and Subsidiaries    
Consolidated Statements of Operations    
(In thousands, except per share data)    
  Three Months Ended December 31, Twelve Months Ended December 31,
  2010 2009 2010 2009
Oil revenue, net  $ 36,945  $ 15,092  $ 110,075  $ 52,454
Other revenue  389  --   389  -- 
Total revenue  37,334  15,092  110,464  52,454
Operating and administrative expenses:        
Lease operating expense  11,276  6,668  32,585  28,113
General and administrative expense  7,881  8,302  32,655  33,258
Geological, geophysical and engineering expense  12,091  6,574  19,107  7,768
Dry hole costs  719  --   32,778  -- 
Depreciation, depletion and amortization expense  9,562  6,536  33,755  25,803
Standby costs  7,487  --   7,487  -- 
Other expense  151  --   12,889  -- 
Total operating and administrative expenses   49,167  28,080  171,256  94,942
Operating loss   (11,833)  (12,988)  (60,792)  (42,488)
Other income (expense):        
Income from investment in Ecuador  property, net of amortization   129  1,130  740  1,208
Interest expense   (3,108)  --   (11,618)  -- 
Interest income   101  28  272  215
Other income (expense )  (9)  (69)  19  (1,312)
Total other income (expense), net   (2,887)  1,089  (10,587)  111
Loss before income taxes   (14,720)  (11,899)  (71,379)  (42,377)
Income tax benefit  (4,644)  (1,921)  (11,608)  (6,575)
Net loss   $ (10,076)  $ (9,978)  $ (59,771)  $ (35,802)
Basic and diluted net loss per share  $ (0.09)  $ (0.09)  $ (0.52)  $ (0.35)
Weighted average common shares outstanding 115,507 115,135 115,368 103,362

Reserves Update

As of December 31, 2010 the Company's total net proved reserves consisted of 38.9 million barrels of crude oil (MmBbls).  This represents a 1.4 MmBbls (4%) increase over the Company's proved reserves reported as of December 31, 2009 and a reserve replacement for 2010 of approximately 191%. The reserves report was prepared under the rules of the Securities and Exchange Commission (SEC) by the independent reserve engineering firm Netherland, Sewell & Associates, Inc. (NSAI) and covered a portion of the Company's Block Z-1 Corvina and Albacora fields located in offshore northwest Peru, using referential 2010 average oil price of $76.92 per barrel. 

Net Proved Crude Oil Reserves and Future Net Cash Flows 
As of December 31, 2010
Based on Average First Day-of-the-Month Fiscal-Year Prices
  Actual Estimated Future Capital Expenditures
  (In MBbls) (In thousands)
Proved Developed Producing   5,427  $ 30,528
Proved Developed Not Producing   6,804  27,400
Proved Undeveloped   26,645  325,800
Total   38,876  $ 383,728
 Standardized Measure of Discounted Future Net Cash Flows, Discounted @ 10% (in thousands)  $ 1,098,361  

Financial Highlights from Quarter and Year Ended December 31, 2010

Production and Revenue

For the three months ended December 31, 2010, net oil revenue increased by $21.8 million to $36.9 million from $15.1 million for the same period in 2009.  The increase in net oil revenue is due to an increase of 252 MBbls of oil sold at $78.39 per barrel. The net realized price per barrel for the fourth quarter increased $9.30, or 13%. Total sales for the three months ended December 31, 2010 was 471 MBbls compared to 219 MBbls for the same period in 2009.

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