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BPZ Energy Signs Memorandum of Understanding With SUEZ Energy Peru

Posted on: Monday, 19 June 2006, 09:00 CDT

BPZ Energy, Inc. (OTC:BPZI) today announced that it has signed a Memorandum of Understanding (MOU) with SUEZ Energy Peru S.A. (SEP) to evaluate the sale of natural gas from the Company's Corvina natural gas field located offshore northwestern Peru, as fuel for a planned 180 megawatt gas-fired thermoelectric power plant to be developed by SEP near the town of Arenillas, Ecuador. At peak capacity, this facility is expected to require about 45 million standard cubic feet per day of natural gas. SEP is controlled by SUEZ (NYSE:SZE), a major international industrial group that engages in the development, design, implementation, and operation of energy and environment systems and networks, which had revenues of approximately $52 billion in 2005.

The scope of the MOU also includes the joint evaluation of a proposed natural gas export pipeline, which will transport the Company's natural gas 35 miles from the Company's mainland reception point of the offshore Corvina field production, to a central delivery point near Arenillas, Ecuador. The natural gas export project would entail marketing natural gas to industrial users and other power generators in Ecuador.

As a result of the evaluation, the Company and SEP expect to establish the basis under which they shall jointly participate in the development of the natural gas export pipeline. The signing of this MOU further enhances the Company's gas-export strategy as an important complement to its Corvina field gas-to-power project. As previously announced, the Company currently has advanced discussions with potential gas off-takers in Ecuador.

Manolo Zuniga, President and Chief Executive Officer of BPZ Energy, Inc. said: "The possibility of entering into a joint venture with SUEZ's Peruvian affiliate is exciting given SUEZ's experience and expertise in natural gas transportation, gas-to-power projects, and natural gas distribution in many countries, including Peru. Additionally, a potential extension of the proposed natural gas pipeline to the city of Guayaquil, Ecuador's industrial engine, is being considered. Guayaquil represents a sizeable industrial market for the Company's natural gas."

New high-voltage power transmission lines between Peru and Ecuador are expected to enable bi-directional power marketing in both countries. The Company and SEP believe they can integrate their respectively planned power plant operations, dispatching electricity from the proposed power generation complex near Arenillas, Ecuador and the Company's Nueva Esperanza Power Plant, located near Caleta Cruz in northwestern Peru. All these power plants are expected to utilize natural gas from the Company's Corvina field as fuel.

About BPZ Energy

Houston-based BPZ Energy, Inc. is an oil and gas exploration and production company with properties in northwest Peru and Ecuador. It is executing an integrated gas-to-power strategy which includes generation and sale of electric power in Peru and sales of gas into Ecuador for third-party power generation. BPZ has exclusive rights and license agreements for oil and gas exploration and production covering approximately 2.2 million acres in three properties in northwest Peru. It also owns a working interest in a producing property in southwest Ecuador. The Company's website at www.bpzenergy.com provides additional information about the Company's plans, including photographs and other information with respect to its operations.

About SUEZ Energy Peru

SUEZ Energy Peru S.A. is controlled by SUEZ, an international industrial group that designs sustainable and innovative solutions for the management of public utility services as a partner of public authorities, businesses and individuals. The group aims at meeting essential needs in electricity, natural gas, energy services, water and waste management. SUEZ is listed on the Brussels, Luxembourg, Paris, New York and Zurich stock exchanges and is represented in the major international indices: CAC 40, BEL 20, DJ STOXX 50, DJ EURO STOXX 50, Euronext 100, FTSE Eurotop 100, MSCI Europe and ASPI Eurozone. The group employs 157,650 people worldwide and achieved revenues of EUR 41.5 billion (approximately $52 billion) in 2005, 89% of which were generated in Europe and in North America.

This Press Release contains forward-looking statements based on our current expectations about our company, our properties, our estimates of required capital expenditures and our industry. You can identify these forward-looking statements when you see us using words such as "expect,""anticipate,""estimate,""believes,""plans" and other similar expressions. These forward-looking statements involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements. Such uncertainties include the success of our project financing efforts as well as the successful management of our capital development project and other normal business risks. We undertake no obligation to publicly update any forward-looking statements for any reason, even if new information becomes available or other events occur in the future. We caution you not to place undue reliance on those statements.

Source: Business Wire

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