BPZ Raises $12.3 Million in Private Placement
BPZ Energy, Inc. said Thursday announced that it completed a private placement of common stock for proceeds of $12,325,500.
The company sold 4,482,000 shares to eight institutional and accredited investors at a price of $2.75 per share. There were no warrants or dilutive securities issued to the investors in connection with the offering. The offering was placed directly by the company and there were no placement fees. However, the company did issue warrants to purchase 150,000 shares of common stock for Morgan Keegan & Co., Inc. in consideration for its financial advisory services. The warrants shall have an exercise price of $3 per share and have a 5-year term.
The funds from this offering will be used primarily to continue development of the Corvina and Albacora fields that are in Block Z-1, located offshore in northwestern Peru. BPZ is securing permits to commence the refurbishment of the Albacora platform and to subsequently carry out workovers on three shut-in oil wells. The company then intends to drill a twin well to the 8-X2 discovery well that tested in excess of 5,000 barrels per day of crude oil and condensate.
The engineering work for the development of the Albacora oil field has been initiated. The field is located approximately 100 miles north of the Talara refinery, where BPZ expects to sell its production. The company believes there is significant potential for further exploration and development of the Albacora oil field. As previously announced, it is in the final steps of preparation to initiate the drilling and workover program for its Corvina gas-to-power and gas-exports projects.
"We are very pleased with the results of this private placement as it will allow us to accelerate the redevelopment of the Albacora oil field, which complements our gas-to-power and gas-exports strategy,” said Manolo Zuniga, BPZ’s president and CEO. “Further, we are grateful for the trust and continued confidence that these investors have shown in the company, as some of them have also participated in prior company offerings."
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 that 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.
- BPZ Energy to Recommence Drilling Ops at Peru Block Z-1 (Jan 23)
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- BPZ Energy Secures Permit Extension at Albacora Field (Jul 03)