BPZ Resources Inc. (OTC: BPZR) has filed a voluntary petition in the US Bankruptcy Court for the Southern District of Texas, seeking relief under the provisions of Chapter 11 of Title 11 of the US Bankruptcy Code. None of the company's direct or indirect subsidiaries has filed for reorganization under Chapter 11.
BPZ Resources 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 CEO 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."
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 that has license contracts covering 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. BPZ Energy also holds 100% working interests in three onshore blocks.