Block XXIII - Mancora Gas Play Potential

BPZ won exclusive rights to explore this 248,000-acre block located onshore between Block Z-1 and Block XIX in northwest Peru with a license contract signed in November 2007.  Block XXIII is of great interest to BPZ, as the Company believes it ties together one of the most important gas plays that extends from offshore Block Z-1, through Block XXIII, and into Block XIX.  This Mancora Gas Play extends through this block and has several wells previously drilled into the Mancora formation, all with strong gas shows.  This block holds the potential for gas in the Mancora formation and oil in the Heath formation.  During the first quarter of 2011, the Company completed a 3-D seismic survey to supplement the 2-D seismic that was completed in October 2010.  The Mancora Gas Play could hold the potential for development of a LNG project, growth of the petrochemical industry, and sales to local industry.