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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