BPZ Resources, Inc. reported unaudited consolidated earnings and production results for the first quarter ended March 31, 2013. For the quarter, the company reported an operating loss of $7.2 million and a net loss of $12.8 million, or $0.11 diluted and basic per share, compared with an operating loss of $18.9 million and a net loss of $27.3 million, or $0.24 diluted and basic per share, for the same period last year. Improved first quarter 2013 operating results were primarily due to lower geological, geophysical and engineering expenses, partially offset by the impact on operating income from the sale of a 49% participating interest in the Z-1 license contract to Pacific Rubiales. Total revenue was $13,312,000 against $36,553,000 a year ago. Loss before income taxes was $12,454,000 against $31,601,000 a year ago. LBITDAX was $346,000 compared to EBITDAX was $17,704,000 a year ago. The large swing was due to the loss of the 49% of the net EBITDAX from Block Z-1, because of the sale in December 2012 and lower net production and therefore, sales. The decrease in 2013 net oil revenue is due to a decrease in the amount of oil sold of 205,000 barrels and 129,000 barrels due to the sale of a 49% interest in Block Z-1, along with lower net oil production. The company's non-Z-1 total capital and exploratory expenditures were $600,000, excluding capitalized interest of $3 million. For Block Z-1, Pacific Rubiales provided 100% funding for the capital and exploratory expenditures of $23 million for the quarter. This includes approximately $7 million related to the cost incurred in the design, fabrication, installation and pipeline connections relating to the CX-15 platform, approximately $6 million related to the CX-15 platform development drilling program and $8 million related to the 3-D seismic program. The company reported net oil production for the three months ended March 31, 2013 was 134 MBbls barrels, or 1,491 bopd, compared to 353 MBbls barrels, or 3,879 bopd a year ago. On pro forma basis net oil production was 263 MBbls barrels, or 2,924 bopd, compared to pro forma net 180 MBbls, or 1,978 bopd, for the same period in 2012. The decrease in oil production is due to natural declines in oil production at both the Corvina and Albacora fields.

BPZ Energy provided an offshore and onshore operations update. OFFSHORE BLOCK Z-1: CX-15 Corvina Field: It is expected that CX-15 drilling operations will begin in early July, upon completion of pre-drilling preparations currently underway. These preparations include installation of a platform anchoring system, already constructed, which will provide redundancy to the existing platform spud can. As a further precaution, ocean floor disturbance around the platform spud can will also be remediated with sand. Installation of the enhanced platform draft monitoring equipment is complete, and improvement to control system instrumentation is expected to be completed by late June. Albacora Field: After review of 3D seismic results, the joint venture operating committee has agreed to reinitiate the Albacora development drilling campaign. Spudding of the first well is expected by early August 2013, once the Petrex 18 drilling rig is mobilized to the platform, with drilling and completion of the well estimated to take twelve weeks. All planned 2013 capital and exploratory expenses in Block Z-1 are expected to be fully carried by Pacific Rubiales Energy Corp. As of April 1, 2013, Pacific Rubiales assumed the role of technical operations manager at Block Z-1. CX-11 Workover Campaign: The final completion string is being run into the 14D well, with subsequent plans to perforate a lower zone. Once complete, the workover rig will move to the 15D well. ONSHORE BLOCK XXIII: Permits for final drilling locations at Block XXIII are expected to be received soon, with new exploration drilling of mapped shallow oil prospects expected to begin in the second half of 2013.

BPZ Resources, Inc., Q1 2013 Earnings Call, May 10, 2013