At offshore Block Z-1, the Corvina CX15-9D well was drilled to a total measured depth of approximately 7,730 feet. The 9D well failed to produce oil, therefore the geologic model is being reevaluated to better understand the impact of the well test results on this area of the field.  However, approximately 35 feet of gas pay was found in the upper Zorritos non-associated gas reservoir in the 9D well, which is where the 16X, 14D and 21XD wells at the CX-11 previously tested rates of gas between 20 and 40 million cubic feet per day in the non-associated gas reservoir. Activity on the 9D well has been suspended and the well is being considered for completion as a gas producer in the future.

The Albacora A-22D development well was drilled to a measured depth of 13,730 feet.  The well is currently being tested, with final results expected later this month.

For the remainder of 2015, the Company intends to focus on low cost workovers at the Corvina and Albacora fields at Block Z-1 to optimize production.  In this respect, work has begun on the Corvina CX15-1D mechanical shut-in well to restore production.  The Company has been granted a deferral for the 2015 Delfin work commitment at Block Z-1. Drilling at Piedra Redonda, which was scheduled to occur after Delfin, has been postponed accordingly.  The Company is also working with Perupetro to defer its future work commitments at its onshore blocks.

Block Z-1 Production from the Corvina and Albacora fields for first quarter 2015 averaged 4,722 barrels of oil per day (bopd) gross, or 2,408 bopd net to BPZ.  Recent production was 4,400 bopd gross, or 2,244 bopd net to BPZ.  The Company holds a 51% participation in Block Z-1.

Cautionary Statements Regarding Bankruptcy Proceedings

The Company’s security holders are cautioned that trading in the Company’s securities during the pending Bankruptcy Case will be highly speculative and will pose substantial risks. Trading prices for the Company’s securities may bear little or no relationship to the actual recovery, if any, by holders thereof in the Company’s Bankruptcy Case.  Accordingly, the Company urges extreme caution with respect to existing and future investments in its securities.

A plan of reorganization or liquidation may result in holders of the Company’s capital stock receiving little or no distribution on account of their interests and cancellation of their existing stock. If certain requirements of the Bankruptcy Code are met, a Chapter 11 plan of reorganization can be confirmed notwithstanding its rejection by the Company’s equity security holders and notwithstanding the fact that such equity security holders do not receive or retain any property on account of their equity interests under the plan.

For more information, please visit: www.bpzenergy.com