BPZ Energy Mobilizes Drilling Rig to Corvina Platform and Wins Bid for Additional Acreage.

HOUSTON -- BPZ Energy, Inc. (OTC:BPZI) today announced that on July 17th the Company commenced mobilization of the drilling rig to its Corvina CX-11 platform, located offshore northwest Peru.

The drilling rig passed all the acceptance tests performed at the drilling contractor's yard. Final acceptance will be issued once all equipment has been fully rigged up and properly tested on the Corvina platform. Refurbishment of the platform has been completed, and the platform was evaluated as fit for operations by ABSG Consulting, Inc., a leading world wide independent risk management consulting company.

The tender-assist barge BPZ-01 has been inspected by local naval authorities and was granted all required navigation permits. The Company has also secured access to a fully operational dock for loading the drilling rig and related equipment onto the BPZ-01 barge for mobilization to the platform. Once the mobilization is completed, the BPZ-01 barge will be moored alongside the platform to provide assistance during the drilling operations.

Manolo Zuniga, President and Chief Executive Officer of BPZ Energy, Inc. stated, "We are very pleased to have entered the mobilization phase of our drilling campaign and look forward to spudding the first Corvina gas well next month. We are confident that our drilling campaign will prove up substantial additional natural gas reserves, as well as demonstrate gas deliverability required for our planned 160MW power plant and our Ecuador gas exports project."

As previously announced, the Corvina gas field has over 3 trillion cubic feet of proved, probable and possible natural gas reserves as certified by Gaffney, Cline & Associates, Inc. using the 1997 definitions and standards adopted by the SPE/WPC. See "Cautionary Note" below regarding important differences between these definitions of reserves and those of the U.S. Securities & Exchange Commission.

Additional Acreage Awarded

In late June, Perupetro officially informed the Company that its proposal for the 248,000 acre Block XXIII, located onshore in northwest Peru, was the winning bid in their recent tender process. The Company is in the process of presenting all necessary documentation to become the qualified Operator of this new block, and will begin negotiating the exploration and development license contract over the next few weeks. Block XXIII is located along the coastline between the Company's Blocks Z-1 and XIX.

Mr. Zuniga continued, "We are excited about having the winning bid on Block XXIII. This area represents an important building block in the long term growth of BPZ Energy, as it complements our existing position in the prospective Tumbes basin."

About BPZ Energy

Houston-based BPZ Energy, Inc. is an oil and gas exploration and production company with properties in northwest Peru and southwest Ecuador. It is executing 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. BPZ has exclusive rights and license agreements for oil and gas exploration and production covering approximately 2.4 million acres in four properties in northwest Peru. It also owns a working interest in a producing property in southwest Ecuador. 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.

This Press Release contains forward-looking statements 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 our project financing efforts as well as 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.

Cautionary Note to U.S. Investors Regarding Oil and Gas Reserve Estimates:

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. We use certain terms in this press release such as "Probable" or "Possible" oil and gas reserves that the SEC's guidelines strictly prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosures in our SEC filings, which are available from the Company or directly from the SEC at www.sec.gov. The reserve quantities reflected above were certified by Gaffney, Cline & Associates using the 1997 definitions and standards of the Society of Petroleum Engineers and World Petroleum Congresses. 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.