Houston, March 2, 2015 (GLOBE NEWSWIRE) -- BPZResources, Inc. (NYSE: BPZ) (BVL: BPZ) today announced that itwill exercise a provision under the bond indenture for the 6.5%Convertible Notes due March 1, 2015 with an outstanding principalamount of $60 million ("collectively, the Notes"), whereby theCompany will avail itself of the 10-day grace period provided forin the Indenture on principal and a 30-day grace period on interestdue for a total amount due of approximately $62 million. Onceexercised, the grace periods will expire on March 10, 2015 forprincipal and March 30, 2015 for interest. The Company is engaged in discussions withrepresentatives of certain holders of the Notes of the Company'sConvertible Bonds issued with combined outstanding principalamounts of $229 million, maturing March 1, 2015 and October 1,2017. These discussions include among other items, thepotential terms under which one or both bond issues could berestructured to provide a capital structure which would allow theCompany to continue developing its oil and gas assets. Discussions are also underway with other potential investorsregarding alternative financing solutions. While the Company is reviewing several options,an appropriate solution may not be found during the graceperiod. If the Company does not make the payment due on the2015 Notes and a resolution cannot be reached by the end of thegrace period, the Company would be in default under the terms ofthe 2015 Indenture. This action would result incross-defaults to the 2017 Convertible Bond issue, and could forcethe Company to seek Chapter 11 Bankruptcy protection, which isdesigned to provide protection from creditors while a company seeksrestructuring and financing solutions to enable it to remain aneconomically viable business. ABOUT BPZ ENERGY BPZ Energy, which trades as BPZ Resources, Inc.under ticker symbol BPZ on the New York Stock Exchange and theBolsa de Valores in Lima, is an independent oil and gas explorationand production company which has license contracts coveringapproximately 1.9 million net acres in offshore and onshorePeru. The Company holds a 51% working interest in offshoreBlock Z-1, which it is developing in partnership with PacificRubiales Energy Corp. The Company also holds 100% workinginterests in three onshore blocks. Please visit www.bpzenergy.com for moreinformation. FORWARD LOOKING STATEMENT This Press Release contains forward-lookingstatements within the meaning of the Private Securities LitigationReform Act of 1995, Section 27A of the Securities Act of 1933 andSection 21E of the Securities Exchange Act of 1934. These forwardlooking statements are based on our current expectations about ourcompany, our properties, our estimates of required capitalexpenditures and our industry. You can identify theseforward-looking statements when you see us using words such as"will," "expected," "estimated," and "prospective," and othersimilar expressions. These forward-looking statements involverisks and uncertainties.
Our actual results could differ materially fromthose anticipated in these forward looking statements. Suchuncertainties include: the availability and access, in general, offunds to meet principal and interest payment obligations under ourdebt 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, inparticular, our ability to fund debt obligations; the outcome ofour discussions with certain note holders regarding restructuringour bonds; our ability to comply with all covenants in ourindentures, any violation of which, if not cured in a timelymanner, could trigger a default of our other obligations undercross-default provisions; our ability to repay debt prior toor when it becomes due and/or successfully access the capital orcredit markets to refinance that debt through new issuances,exchange offers or otherwise, including restructuring our balancesheet and leverage position, especially given recent volatility anddisruption in the oil and gas industry; successful operation of ournew platform in Corvina; the success of our project financingefforts; accuracy of well test results; results of seismic testing;well refurbishment efforts; successful production of indicatedreserves; satisfaction of well test period requirements; successfulinstallation of required permanent processing facilities; receiptof all required permits; the successful management of our capitalexpenditures; and other normal business risks. We undertakeno obligation to publicly update any forward-looking statements forany reason, even if new information becomes available or otherevents occur in the future.CAUTIONARY STATEMENT REGARDING CERTAININFORMATION RELEASES The Company is aware that certain informationconcerning its operations and production is available from time totime from Perupetro, an instrumentality of the Peruvian government,and the Ministry of Energy and Mines ("MEM"), a ministry of thegovernment of Peru. This information is available from thewebsites of Perupetro and MEM and may be available from otherofficial sources of which the Company is unaware. Thisinformation is published by Perupetro and MEM outside the controlof the Company and may be published in a format different from theformat used by the Company to disclose such information, incompliance with SEC and other U.S. regulatory requirements.
Additionally, the Company's joint venturepartner in Block Z-1, Pacific Rubiales Energy Corp. ("PRE"), is aCanadian public company that is not listed on a U.S. stockexchange, but is listed on the Toronto (TSX), Bolsa de Valores deColombia (BVC) and BOVESPA stock exchanges. As such PRE maybe subject to different information disclosure requirements thanthe Company. Information concerning the Company, such asinformation concerning energy reserves, may be published by PREoutside of our control and may be published in a format differentfrom the format the Company uses to disclose such information,incompliance with SEC and other U.S. regulatory requirements.The Company provides such information in theformat required, and at the times required, by the SEC and asdetermined to be both material and relevant by management of theCompany. The Company urges interested investors and thirdparties 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 canalso be obtained from the SEC via the internet at www.sec.gov. ###
CONTACT: A. Pierre Dubois Director, Investor Relations & Corporate Communications BPZ Energy 1-281-752-1240 firstname.lastname@example.org