BPZ Announces $2.7M Equity Over-allotment Placement
BPZ Energy, Inc. has closed an over-allotment of 500,000 shares of common stock at a price of $5.40 for an additional $2.7 million. The over-allotment was offered under the same terms and conditions, except for the price, to the investors that participated in the recently completed $35 million private placement.
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 in connection with this transaction. This transaction is contingent upon approval of the additional listing of shares by the American Stock Exchange.
These funds will be used, in part, to support the exploration commitment for Block XXII, located onshore in the Lancones basin, for which the Company has been qualified as the bonafide operator and is in the process of finalizing the license contract. The Company expects to receive in the near future the qualification as bonafide operator for Block XXIII, located onshore in the Tumbes basin adjacent to the Company's offshore Block Z-1 and onshore Block XIX.
Manolo Zuniga, President and CEO of BPZ Energy, said: "Given the industry's increasing level of interest in Peru, we are very pleased with the progress made in our negotiations for finalizing the license contracts for Blocks XXII and XXIII. These additional funding demonstrates once again the support we have from our investors to ensure the Company will comply with the work commitments under these license contracts."
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.
- BPZ Energy to Recommence Drilling Ops at Peru Block Z-1 (Jan 23)
- Wison Group, BPZ Energy Tout World's First Buoyant Tower Sail Away (Aug 07)
- BPZ Energy Secures Permit Extension at Albacora Field (Jul 03)