BPZ Energy Converts $15.5 Million Debt into Equity

BPZ Resources, Inc. has elected to exercise its right to convert $15.5 million of debt with the International Finance Corporation (IFC) into 1,491,819 common shares of BPZ Resources.

The terms of the Convertible Debt agreement, dated November 19, 2007, stipulate a conversion price of $10.39 per share and include a forced conversion, exercisable at the Company's option, if the closing price of the Company's common stock exceeds a price of $18.19 per share based on the average closing price over a period of twenty consecutive business days. The elimination of the related debt service is a significant benefit to the Company at this early stage, with the resulting cash savings being available to fund BPZ's strategic short-term growth initiatives.

Immediately after conversion, the Company had 78,130,290 common shares outstanding, with fully diluted share count of 82,085,738.

Manolo Zúñiga, President and Chief Executive Officer, stated, "With the conversion of the debt into equity, IFC now owns approximately 10% of BPZ. In addition to IFC's equity participation, we are currently negotiating a term sheet with them on a credit facility of approximately $200 million subject to a borrowing base calculated from our recently announced oil reserve report and will enable us to continue developing the Corvina and Albacora oil projects, as well as an additional $120 million debt facility to fund the development of our gas-to-power project. We are extremely pleased to have IFC as a financial partner and look forward to continuing to build shareholder value through our relationship."