BPZ Energy an independent oil company with assets in Peru, has announced that its Board of Directors has determined that it is in the best interest of the Company’s stakeholders for the Company to undertake an organized process to attempt to sell, in a single transaction, substantially all of its assets, subject to the necessary approvals by the bankruptcy court overseeing the Company’s Chapter 11 case.

As previously announced, and in connection with its Chapter 11 filing, the Company has been engaged in an evaluation of potential strategic alternatives in order to preserve and maximize stakeholder value.

The potential alternatives included (i) pursuing a strategic transaction with a third party, such as a merger or sale of the Company; (ii) the reinvestment of the Company’s liquid assets in favorable opportunities; and (iii) pursuing third party financing for ongoing operations.

BPZ says however, that the process to date has not yielded any opportunities likely to provide greater realizable value than attempting to sell all of its assets in a single batch.

The company has warned its security holders are cautioned that trading in the Company’s securities during the pendency of the Bankruptcy Case will be highly speculative and will pose substantial risks:

“Trading prices for the Company’s securities may bear little or no relationship to the actual recovery, if any, by holders thereof in the Company’s Bankruptcy Case. Accordingly, the Company urges extreme caution with respect to existing and future investments in its securities.

A plan of reorganization, organized sale of the Company’s assets, or liquidation will likely result in holders of the Company’s capital stock receiving little or no distribution on account of their interests and cancellation of their existing stock.

If certain requirements of the Bankruptcy Code are met, a Chapter 11 plan of reorganization can be confirmed notwithstanding its rejection by the Company’s equity security holders and notwithstanding the fact that such equity security holders do not receive or retain any property on account of their equity interests under the plan.”

The company

BPZ Energy is an independent oil and gas exploration and production company with license contracts covering 1.9 million net acres in four blocks located in northwest Peru. Current operations in these blocks range from early-stage exploration to production. The Company holds a 51% working interest in offshore Block Z-1, where development drilling is currently underway at the Corvina and Albacora fields with joint venture partner Pacific Rubiales Energy Corp.

Onshore, the Company holds 100% working interests in Blocks XIX, XXII and XXIII which total 1.6 million acres. In southwest Ecuador, the Company owns a non-operating net profits interest in a producing property.

Source: www.offshoreenergytoday.com

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