Houston, March 9, 2015 (GLOBE NEWSWIRE) -- BPZ
Resources, Inc. (OTC: BPZR) announced today that it has filed a
voluntary petition in the United States Bankruptcy Court for the
Southern District of Texas (the "Bankruptcy Court") seeking
relief under the provisions of Chapter 11 of Title 11 of the United
States Bankruptcy Code (the "Bankruptcy Code"). None of the
Company's direct or indirect subsidiaries has filed for
reorganization under Chapter 11.
The Company will continue to operate its
business as debtors-in-possession under the jurisdiction of the
Bankruptcy Court. Its subsidiaries will continue to operate
in the ordinary course. The Company is seeking approval from the
Bankruptcy Court for a variety of "first day" motions, including
authority to maintain bank accounts and other customary relief.
President and Chief Executive Officer, Manolo
Zuniga, stated, "Given the industry downturn and our inability to
find a suitable financing resolution to our current debt maturity
and interest payments, it has become necessary to pursue the
Chapter 11 process. Our efforts to negotiate additional
financing to fund business activities and pursue identified
strategic alternatives were further impeded when oil prices
plummeted and production growth faltered, creating additional
obstacles to our restructuring efforts. We will provide
updates on this process as they become available."
Additional information can be found on the BPZ website at
www.bpzenergy.com and
www.kccllc.net/bpz.
ABOUT BPZ ENERGY
BPZ Energy, which trades as BPZ Resources, Inc.
under ticker symbol BPZR on the OTC marketplace, is an independent
oil and gas exploration and production company which has license
contracts covering approximately 1.9 million net acres in offshore
and onshore Peru. The Company holds a 51% working interest in
offshore Block Z-1, which it is developing in partnership with
Pacific Rubiales Energy Corp. The Company also holds 100%
working interests in three onshore blocks. Please visit
www.bpzenergy.com for more
information.
FORWARD LOOKING STATEMENT
This Press Release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These forward
looking statements are based on our current expectations about our
company, our properties, our estimates of required capital
expenditures and our industry. You can identify these
forward-looking statements when you see us using words such as
"will," "expected," "estimated," and "prospective," and other
similar expressions. These forward-looking statements involve
risks and uncertainties.
Our actual results could differ materially from
those anticipated in these forward looking statements. Such
uncertainties include: the availability and access, in general, of
funds to meet principal and interest payment obligations under our
debt and to fund our operations and necessary capital expenditures,
either through cash on hand, cash flows from operating activities,
further borrowings and alternative financing sources and, in
particular, our ability to fund debt obligations; the outcome of
our discussions with certain note holders regarding restructuring
our bonds; our ability to comply with all covenants in our
indentures, any violation of which, if not cured in a timely
manner, could trigger a default of our other obligations under
cross-default provisions; our ability to repay debt prior to
or when it becomes due and/or successfully access the capital or
credit markets to refinance that debt through new issuances,
exchange offers or otherwise, including restructuring our balance
sheet and leverage position, especially given recent volatility and
disruption in the oil and gas industry; successful operation of our
new platform in Corvina; the success of our project financing
efforts; accuracy of well test results; results of seismic testing;
well refurbishment efforts; successful production of indicated
reserves; satisfaction of well test period requirements; successful
installation of required permanent processing facilities; receipt
of all required permits; the successful management of our capital
expenditures; and other normal business risks. We undertake
no obligation to publicly update any forward-looking statements for
any reason, even if new information becomes available or other
events occur in the future.
CAUTIONARY STATEMENT REGARDING CERTAIN
INFORMATION RELEASES
The Company is aware that certain information
concerning its operations and production is available from time to
time from Perupetro, an instrumentality of the Peruvian government,
and the Ministry of Energy and Mines ("MEM"), a ministry of the
government of Peru. This information is available from the
websites of Perupetro and MEM and may be available from other
official sources of which the Company is unaware. This
information is published by Perupetro and MEM outside the control
of the Company and may be published in a format different from the
format used by the Company to disclose such information, in
compliance with SEC and other U.S. regulatory requirements.
Additionally, the Company's joint venture
partner in Block Z-1, Pacific Rubiales Energy Corp. ("PRE"), is a
Canadian public company that is not listed on a U.S. stock
exchange, but is listed on the Toronto (TSX), Bolsa de Valores de
Colombia (BVC) and BOVESPA stock exchanges. As such PRE may
be subject to different information disclosure requirements than
the Company. Information concerning the Company, such as
information concerning energy reserves, may be published by PRE
outside of our control and may be published in a format different
from the format the Company uses to disclose such information,
incompliance with SEC and other U.S. regulatory requirements.
The Company provides such information in the
format required, and at the times required, by the SEC and as
determined to be both material and relevant by management of the
Company. The Company urges interested investors and third
parties to consider closely the disclosure in our SEC filings,
available from us at 580 Westlake Park Blvd., Suite 525, Houston,
Texas 77079; Telephone: (281) 556-6200. These filings can
also be obtained from the SEC via the internet at
www.sec.gov.
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CONTACT: A. Pierre Dubois
Director, Investor Relations & Corporate Communications
BPZ Energy
1-281-752-1240
pierre_dubois@bpzenergy.com
