BPZ Energy Closes $44 Million Private Placement of Common Stock

BPZ Resources, Inc. announced that it closed the previously announced private placement of common stock for gross proceeds of approximately $43.6 million. The Company sold approximately 14.3 million shares to institutional and accredited investors at a price of $3.05 per share pursuant to a Stock Purchase Agreement dated as of February 19, 2009.

Additionally, the International Finance Corporation (IFC) holds a right to participate in the offering which, if exercised in full, would result in the sale of an additional 1.4 million shares of common stock, increasing the total shares issued in the offering to approximately 15.7 million and the gross proceeds to the Company of the offering to approximately $48.0 million.

No warrants or other dilutive securities were issued to the investors or will be issued to IFC in connection with the private placement. The shares were placed by Pritchard Capital Partners, LLC, with Morgan Keegan & Company, Inc. serving as financial advisor.

Proceeds from offering will be used primarily to fund the ongoing oil development in the Corvina and Albacora oil fields in the Company’s offshore Block Z-1, including payment of accounts payable incurred in connection with such development, and general corporate purposes consistent with the Company’s operating plan as described in its public filings.