Offshore staff

BPZ Energy Inc. has agreed with Suez Energy Peru S.A. to evaluate the sale of natural gas from the BPZ's Corvina natural gas field offshore northwestern Peru.

The gas would go to a power plant SEP plans onshore at Arenillas, Ecuador. Gas demand at the plant would be 45 MMscf/d.

The memo of understanding also covers joint evaluation of a proposed gas export pipeline from the Corvina mainland terminal to Arenillas.

6/20/06