Houston, Sept. 24, 2013 (GLOBE NEWSWIRE) -- BPZ Resources, Inc.,(NYSE: BPZ) (BVL: BPZ), today announced the closing of its offeringof $125.0 million principal amount of 8.50% Convertible SeniorNotes due September 2017 (the "2017 Notes") as well as therepurchase of $85.0 million of its outstanding 6.50% ConvertibleSenior Notes due March 2015. The Company also granted the underwriters a 30-day option topurchase an additional $18.8 million of the 2017 Notes. Inaddition, the International Finance Corporation (IFC) holds theright to participate in the offering for up to 45 days after beingnotified of the terms of the offering, which, if exercised, wouldincrease the size of the offering. The Company intends to use the remaining proceeds afterrepurchases of outstanding notes for general corporate purposes,including to fund its exploration and production efforts or otherprojects or to reduce or refinance its outstanding debt. TheCompany will also use cash on hand following the closing of theoffering to repay the remaining $36.0 million balance under itssecured bank debt facility. The notes will be convertible by holders under certaincircumstances and during certain periods into shares of theCompany's common stock at an initial conversion rate of 249.5866shares of common stock per $1,000 principal amount of notes, whichis equivalent to an initial conversion price of approximately $4.01per share of common stock, subject to adjustment. Uponconversion, holders will receive, at the Company's discretion,cash, shares of the Company's stock, or a combination thereof. The 2017 Notes were issued via an underwritten public offering,resulting in net proceeds of approximately $31.3 million, afterrepurchases of outstanding notes and estimated offeringexpenses. Interest on the 2017 Notes will be paidsemi-annually on April 1 and October 1 of each year.
Raymond James & Associates, Inc. acted as sole book-runningmanager of this offering. The 2017 Notes offering was madeonly by means of a prospectus, forming a part of the Company'seffective shelf registration statement, related prospectussupplement and other related documents. You may obtain thesedocuments at no cost by visiting EDGAR on the Securities andExchange Commission website at www.sec.gov. Alternatively, copies of the prospectussupplement and accompanying prospectus relating to this offeringmay be obtained from Raymond James & Associates, Inc., 880Carillon Parkway, St. Petersburg, FL 33716, Attention: EquitySyndicate (telephone: 800-248-8863 or email:prospectus@RaymondJames.com).This press release is neither an offer to sell nor asolicitation of an offer to buy any of these securities and shallnot constitute an offer, solicitation or sale in any jurisdictionin which such offer, solicitation or sale is unlawful. BPZ ENERGY Houston-based BPZEnergy, which trades as BPZ Resources, Inc. under ticker symbolBPZ on the New York Stock Exchange and the Bolsa de Valores inLima, is an independent oil and gas exploration and productioncompany which has license contracts covering approximately 2.0million net acres in offshore and onshore Peru. The Companyholds a 51% interest in offshore Block Z-1, which it is developingin partnership with Pacific Rubiales Energy Corp. BPZ Energyalso holds 100% working interests in three onshore blocks inPeru. Please visit the Company's website at www.bpzenergy.com for moreinformation. FORWARD LOOKING STATEMENT This Press Release contains forward-looking statementswithin the meaning of the Private Securities Litigation Reform Actof 1995, Section 27A of the Securities Act of 1933 and Section 21Eof the Securities Exchange Act of 1934. These forward lookingstatements are based on our current expectations about our company,our properties, our estimates of required capital expenditures andour industry. You can identify these forward-looking statementswhen you see us using words such as "anticipates," "intends,""will," "expects," and other similar expressions. Theseforward-looking statements involve risks anduncertainties. Our actual results could differ materially from thoseanticipated in these forward looking statements. Such uncertaintiesinclude the success of our project financing efforts, accuracy ofwell test results, results of seismic testing, well refurbishmentefforts, successful production of indicated reserves, satisfactionof well test period requirements, receipt of all required permits,the successful management of our capital expenditures, and othernormal business risks. We undertake no obligation to publiclyupdate any forward-looking statements for any reason, even if newinformation becomes available or other events occur in thefuture. ###
CONTACT: A. Pierre Dubois Investor Relations & Corporate Communications BPZ Energy 281-752-1240 firstname.lastname@example.org