Block XIX - New Exploration Drilling

BPZ owns a 100% working interest in Block XIX, which covers approximately 473,000 acres onshore and is located adjacent to Block Z-1 in northwest Peru. In 2007, the Company completed a 124-mile 2-D seismic survey to define drilling locations and target the Heath formation for oil and the Mancora formation for gas. Block XIX is an early-stage play for BPZ with significant oil and gas potential.  During second quarter 2011, BPZ has spud its first onshore well, the PLG - 1X, in the Pampa la Gallina prospect as a step-out to a well that previously tested both oil and gas.