Pacific Rubiales Energy Corp. has reached an agreement with BPZ Resources, Inc. to enter into a series of transactions ultimately resulting in the acquisition of beneficial ownership of a 49% undivided participating interest (the "Participating Interest") in the Z-1 exploration and development block ("Block Z-1"), offshore in Peru. Under the terms of the agreement, Pacific Rubiales will pay U.S.$150 million in cash and is subject to a commitment of U.S.$185 million for BPZ's share of capital and exploratory expenditures in Block Z-1.

Once the Company has satisfied its commitment to BPZ in connection with the capital and exploratory expenditures, the partners will share costs at their respective ownership interest basis. Completion of the acquisition is subject to approval of the applicable Peruvian authorities.

Tags: Pacific Rubiales Energy Corp.