BPZ Raises $35M in Common Stock Placement
BPZ Energy, Inc. has closed the previously announced private placement of its common stock for gross proceeds of approximately $35 million. The Company sold approximately 6.7 million shares to sixteen institutional and accredited investors at a price of $5.25 per share.
No warrants or dilutive securities will be issued to the investors in connection with the private placement. The shares are being placed directly by the Company and there are no placement fees. However, the Company retained Morgan Keegan & Company, Inc., as its financial advisor.
As previously announced, a final production test after completion of the Company's Corvina CX11-21XD well yielded 5,900 barrels of crude oil per day (bopd) with 920 psia of wellhead pressure. The well has been temporarily completed as an oil producing well. A portion of the proceeds from this offering will be used to accelerate development of the Corvina oil discovery and otherwise will be used consistent with our operating plan as described in our public filings.
Houston based BPZ Energy, Inc. is an oil and gas exploration and production company which has exclusive rights and license agreements for oil and gas exploration and production covering approximately 2.4 million acres in four properties in northwest Peru. It also owns a working interest in a producing property in southwest Ecuador. The Company is currently 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, in parallel with the development of the Corvina oil and the redevelopment of the Albacora oil field.