BPZ Energy Closes $88MM Registered Offering

BPZ Resources closed its previously announced sale of approximately 18.8 million shares of its common stock at $4.66 per share in a registered offering of common stock. Net proceeds to the Company from the offering, after payment of placement agent fees and offering expenses, were approximately $84 million.

The Company intends to use the net proceeds from this offering primarily to fund the ongoing oil development in the Corvina and Albacora oil fields in the Company's offshore Block Z-1, a second platform for the Corvina field, certain capital expenditures needed to meet obligations related to the license contracts in the Company's Blocks XIX, XXII and XXIII, and general corporate purposes consistent with the Company's operating plan as described in its public filings.

Canaccord Adams Inc. acted as lead placement agent for the offering along with Pritchard Capital Partners, LLC, and Raymond James and Associates, Inc. In addition, Rodman & Renshaw, LLC, and Wunderlich Securities, Inc. assisted as agents in the transaction.

Manolo Zuniga, President and Chief Executive Officer, commented, "This equity raise places BPZ in a position to expedite the development of its assets in Peru. This additional access to capital takes the financing overhang off the Company and gives us the needed capital to accelerate development of both our offshore and onshore assets."