BPZ Energy Announces 2013 Capital Plan And Provides Block Z-1 Operational Update

HOUSTON, Jan. 22, 2013 (GLOBE NEWSWIRE) -- BPZ Energy (NYSE:BPZ) (BVL:BPZ), an independent oil and gas exploration and production company, today announced its 2013 capital investment program and provided a Block Z-1 operational update.

2013 BUSINESS PLAN

The Company plans to spend approximately $27 million net in 2013 on capital and exploratory expenditures, excluding capitalized interest, for its three onshore blocks in which the Company holds 100% working interests, as the capital and exploratory expenditures for offshore Block Z-1 are fully carried by Pacific Rubiales Energy Corp. (TSX:PRE) (BVC:PREC) (BOVESPA:PREB) under the joint venture agreements.

The Company's 51% share of Block Z-1 capital investments to be fully carried by Pacific Rubiales Energy Corp. is budgeted at $79 million ($149 million gross). Planned activities at Block Z-1 include CX-15 developmental drilling for six wells and projects and engineering at the Corvina and Albacora fields. On a contingent basis, the budget includes a two-well drilling program and facilities at the Albacora field should 3D seismic dictate a return to drilling, and a Corvina gas pipeline to shore related to the proposed gas-to-power project. In addition, exploratory expenditures include the completion of 3D seismic survey-related activity, including processing, as well as other engineering projects.

Planned capital and exploratory expenditures onshore include contingent amounts subject to receipt of necessary permits which include $12 million for shallow drilling activities at Block XXIII as well as $9 million of 3D and 2D seismic work for Blocks XIX and XXII, respectively. Other expenditures of $6 million are also included.

BLOCK Z-1 OPERATIONAL UPDATE

In the following discussion please note all 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.

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