31 Dec 2015listing compliance notice▼ BadMajor
BPZ RESOURCES, INC. deregistered its securities, ending its obligation to file reports with the SEC.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
31 Dec 2015bankruptcy or receivership▼ BadMajor
The liquidation plan took effect on December 31, 2015: all of BPZ's assets moved to a liquidating trust for creditors (trustee Gilbert E. Nathan), which plans an initial distribution of about $9 million to trust-interest holders. All common stock was cancelled without consideration and has no value, and BPZ says it will file Form 15 and stop further SEC reports.
18 Nov 2015bankruptcy or receivership▼ BadMajor
On November 12, 2015 the bankruptcy court confirmed BPZ's Second Amended Plan of Liquidation, which moves the remaining assets to a liquidating trust for creditors and ends all existing shares with no distribution to shareholders. The filing says 118,663,139 shares were outstanding and are worthless, and as of September 30, 2015 reported liabilities of about $613.3 million against assets of about $99.5 million. The plan becomes effective on a date the company picks, expected before year-end, and BPZ intends to file Form 15 to stop SEC reporting.
6 Aug 2015asset acquisition disposition▼ BadMajor
BPZ closed both asset sales approved in July: the onshore blocks and power subsidiary went to Zorritos on July 30 for $750,000 (down from $1.0 million because the Santa Elena operator exercised a right of first refusal on SMC Ecuador's interest), and the Block Z-1 holding structure went to Zedd on July 31 for $8.5 million. BPZ now has no business operations, only the three power turbines left to liquidate, and expects no assets to be available for shareholders. The CFO's position was eliminated and the CEO was terminated, both effective July 31.
14 July 2015bankruptcy or receivership▼ BadMajor
On July 8, 2015 the bankruptcy court approved the sale of substantially all of BPZ's assets: $8.5 million in cash from Zedd Energy Holdco for the structure holding the 51% Block Z-1 interest and marine assets, and $1.0 million in cash from Zorritos Peru Holdings for the onshore blocks, power subsidiary and (subject to approval) SMC Ecuador. After closing, BPZ says it will have no operations, only three idle power turbines left to sell, and it expects shareholders to receive no value and its stock to be cancelled under a liquidation plan due by August 6. This resolves the Chapter 11 question of what happens to the assets and confirms the earlier warning about equity.
1 May 2015listing compliance notice● NeutralMajor
BPZ RESOURCES, INC.'s exchange filed to remove a class of its securities from listing.
23 Apr 2015production update▼ Bad
The Albacora A-22D well, whose results were due in April, tested water with no oil shows from the three targeted zones, which the company says establishes the southeastern edge of the field. BPZ is reinterpreting all Albacora well and seismic data, and has begun a workover on A-27D to perforate additional untested zones. April Block Z-1 output so far averaged 4,325 gross (2,206 net) bopd, lower than Q1 2015's 4,722 gross. BPZ remains in Chapter 11 while seeking financing.
13 Apr 2015production update▼ BadMajor
While in Chapter 11 and seeking financing, BPZ reported that Corvina well CX15-9D failed to produce oil, though about 35 feet of gas pay was found and the well may later be completed as a gas producer. Albacora A-22D was drilled to 13,730 feet with final test results due later in April. BPZ plans only low-cost workovers on Block Z-1 for the rest of 2015, has been granted a deferral of the 2015 Delfin work commitment (so Piedra Redonda drilling is postponed), and is working with Perupetro to defer onshore commitments. Q1 2015 Z-1 output averaged 4,722 gross (2,408 net) bopd, with recent output 4,400 gross (2,244 net), below Q4 2014's 5,276 gross. This reverses the earlier mid-2015 Delfin drilling plan.
10 Mar 2015bankruptcy or receivership▼ BadMajor
On March 9, 2015 BPZ Resources, Inc. filed for Chapter 11 bankruptcy in the Southern District of Texas (Victoria Division), the outcome of the grace-period and restructuring talks flagged on March 2. The filing is an event of default on the $60 million 6.50% notes and the $169 million 8.50% 2017 notes, with enforcement stayed. The company continues to operate as debtor-in-possession; its subsidiaries have not filed. The filing warns that a plan could leave shareholders with little or no distribution and cancel their stock, but no plan has been proposed yet.
3 Mar 2015listing compliance notice▼ BadMajor
On March 2, 2015 the NYSE suspended trading in BPZ stock immediately and began delisting proceedings, saying the share price was 'abnormally low'; this cuts short the June 8 cure window from the December notice. The stock began trading on the OTC Pink market as 'BPZR' on March 3, and BPZ has a right to a review by an NYSE committee. Separately, BPZ said it would use the grace periods on its 6.50% notes due March 1, 2015 (about $60 million principal, roughly $62 million with interest): principal grace ends March 10 and interest grace ends March 30. If unpaid, default could cross-default the 2017 notes if the 2015 notes are accelerated; combined notes are $229 million. BPZ had an estimated $47 million cash at Feb 28, 2015, is in talks with certain noteholders on restructuring and with other investors on financing, and says Chapter 11 could be needed. This turns the open financing review and the March notes maturity into a payment miss.
23 Jan 2015production update▲ Good
Albacora A-27D produced about 1,135 gross bopd over 10 days and about 905 over the last 24 hours, helped by extra pay in the Lower Zorritos sands. Full-year 2014 Block Z-1 output averaged 5,055 gross (2,578 net) bopd, up 83% on 2013, and Q4 averaged 5,276 gross (2,691 net). A new well, A-22D, was spud January 10 with results due in April, and BPZ plans to perforate deeper sands in A-21D and A-26D in Q1 2015. The full 2015 capital plan is still under review while BPZ works with its Z-1 partner on costs and with advisors on financing alternatives, so financing remains unresolved.
23 Dec 2014production update● Neutral
Corvina CX15-14D came online at about 600 gross (306 net) bopd over 10 days. Block Z-1 Q4 output to December 21 averaged about 5,326 gross (2,716 net) bopd, above Q3. CX15-8D was spud December 11 with results due February 2015, and A-27D results slipped to January 2015 (previously the end of 2014). The CEO says the 2015 budget is under review because of the lower oil price, so planned spending may change.
12 Dec 2014listing compliance notice▼ BadMajor
The NYSE told BPZ on December 8, 2014 that its share price has averaged below the $1.00 minimum over 30 trading days. BPZ has until June 8, 2015 to get back above $1.00, or the NYSE may begin suspension and delisting procedures. The stock stays listed meanwhile with a '.BC' marker. The CEO says the company is reviewing strategic and financing alternatives and intends to remain a going concern. This is a new risk to shareholders alongside the 2015 notes due in March.
31 Oct 2014production update▲ GoodMajor
The three onshore Block XXIII wells (Caracol 1X, El Cardo 2X, Piedra Candela 3X), whose results were awaited in October, all tested dry gas. Piedra Candela 3X tested 4.1 million cubic feet per day, Caracol 1X 1.5 and El Cardo 2X 0.3. The company's own volume estimates are up to 39, 34.9 and 10.1 Bcf, assuming the prospects are full. BPZ plans long-term testing, with possible gas sales to local communities via a CNG distributor, but only preliminary discussions have taken place and nothing is yet sold or booked as reserves.
28 Oct 2014production update▲ Good
The Albacora A-18D sidetrack, flagged in September as being completed, came online at a peak of 820 gross (418 net) bopd and about 721 gross (368 net) over 14 days, with the new deeper oil sands the main producers. Q3 2014 Block Z-1 output averaged about 4,777 gross (2,436 net) bopd, and the last 14 days averaged about 5,400 gross (2,754 net). CX15-10D is completed with results due in November, and two further wells (CX15-14D, A-27D) are drilling. A-21D water was traced to the bottom sand, and an intervention plan is being prepared.
25 Sept 2014production update● Neutral
Block Z-1 Q3-to-date output is about 4,680 gross (2,387 net) bopd, with recent output around 5,000 gross. Corvina CX15-7D came online at about 640 gross bopd, CX15-10D was spud Sept 14 (completion expected November), and the A-18D sidetrack is being completed. Several wells are shut in or on temporary gas lift, with permanent gas lift planned for Q4. Management says Delfin drilling is planned by mid-2015 and Block XXIII test results will come in October; the CEO expects better year-end production and cash flow, which is a forecast, not a result.
1 Aug 2014production update▼ BadMajor
Q2 2014 Block Z-1 output averaged 5,134 gross (2,618 net) bopd, up from 2,792 gross (1,424 net) in Q2 2013, but Q3 to date is lower at about 4,700 gross bopd, which BPZ attributes to A-18D being sidetracked and two wells shut in for water (A-21D and CX15-3D). New wells A-26D and CX15-5D are online, CX15-7D was spud July 29, and a new VP of Operations, Gonzalo Ruiz, joined. This partly contradicts the earlier ramp-up picture: some wells lost production.
5 June 2014production update● Neutral
Second-quarter 2014 Block Z-1 output averaged about 5,435 gross (2,772 net) bopd through June 3. The Albacora A-21D well came online in mid-May at about 885 gross bopd, A-26D was spud May 16 (completion expected end of July), and Corvina CX15-5D results are expected in July. Onshore, additional testing is starting at Caracol 1X, then Cardo 2X and Piedra Candela 3X, with the three-well program due to finish by end of September 2014.
18 Apr 2014debt financing● NeutralMajor
BPZ agreed privately to retire $26.0 million of its 6.50% notes due March 2015 in exchange for $25.0 million of new 8.50% notes due October 2017. After this, $59.9 million of the 2015 notes remain and $168.7 million of the 2017 notes are outstanding. This continues the September 2013 refinancing, moving more debt to 2017 at a higher interest rate on the same conversion terms (about $4.01 per share), so more potential share dilution.
12 Feb 2014production update▲ GoodMajor
The second Corvina CX-15 well (CX15-2D), completed at the end of January 2014 after the earlier stuck-pipe sidetrack, averaged about 775 gross (395 net) barrels of oil a day over seven days. Block Z-1 now produces about 5,425 gross (2,765 net) bopd. BPZ budgets $71 million for its 51% share of 2014 Z-1 spending, which it expects Pacific Rubiales' remaining $81 million carry (as of Dec 31, 2013) to cover fully, plus about $15 million onshore. The Caracol 1X well reached 3,450 feet and is being prepared for testing, and permits are in hand for the Delfin, Piedra Redonda and Raya offshore prospects.
8 Jan 2014production update▲ GoodMajor
On Jan 8, 2014 BPZ reported the Albacora A-18D well, completed Dec 23, 2013, producing about 2,100 gross bopd (1,071 net) and lifting Block Z-1 gross output above 4,900 bopd. Full-year 2013 Z-1 production averaged 2,760 gross (1,408 net) bopd, versus 3,310 gross (1,688 net) in 2012. The CX15-2D well got stuck and is being sidetracked, with completion expected late January 2014; A-19D was spud Jan 1 and the Caracol 1X onshore exploration well was spud Jan 5, 2014.
19 Dec 2013production update● Neutral
In a Dec 18, 2013 update, the first CX-15 well (CX15-1D) was averaging 430 gross bopd over 45 days from its third interval (535 bopd over the last 24 hours), with two intervals still untested. The CX15-2D well is expected to complete in early 2014, and Albacora 18D reached 12,600 feet. Block XXIII onshore drilling (Caracol 1X) is expected to start by end of December 2013 or early 2014. The CX-15 results were expected before end of October per the earlier update, so this is later than that.
1 Oct 2013debt financing▲ GoodMajor
On Sept 26, 2013 BPZ repaid the remaining $36 million of its $40 million Credit Suisse loan, plus a prepayment premium and remaining interest totalling $2.6 million, and the credit agreement was terminated. The underwriter also exercised in full its option to buy the extra $18.8 million of 2017 notes (net about $16.3 million), and the Albacora A-18D well was spudded, a 12-week drilling and completion, as the Albacora restart set for early August (a delay of about two months). The CEO said the first CX-15 well results were expected before the end of October. This closes the Credit Suisse secured bank debt.
25 Sept 2013debt financing● NeutralMajor
BPZ sold $125 million of 8.50% Convertible Senior Notes due October 1, 2017 (net about $107.8 million), convertible at about $4.01 per share, and used the proceeds to buy back and retire about $85.0 million of the $170.9 million 6.50% notes due 2015. The remaining proceeds are for general corporate purposes; the underwriter had a 30-day option on $18.8 million more, and IFC may also participate. This pushes out part of the 2015 maturity but at a higher interest rate, and the new notes could convert into shares (dilution possible).
19 Sept 2013debt financing● NeutralMajor
On Sept 16, 2013 Credit Suisse gave a waiver under the $40 million loan (amended May 9, 2013) so BPZ can refinance part of its 6.50% Convertible Notes due 2015, including buying back some in negotiated deals. BPZ also announced an underwritten offering of about $110 million of Convertible Senior Notes due 2017 to fund this, and filed updated risk factors; this starts the refinancing of the 2015 notes flagged as an open thread.
10 May 2013debt financing● NeutralMajor
On May 9, 2013 BPZ repaid the remaining $30.5 million of the original $75 million Credit Suisse loan, with a prepayment fee of about $2.4 million. It also amended and restated the $40 million loan, increasing its size and borrowing an additional $14.5 million, with revised covenants and repayments, maturity January 2015 and fees of about $1.8 million. An operational update says CX-15 drilling is now expected in early July 2013 and Albacora drilling is restarting with the first well expected by early August 2013; Pacific Rubiales became technical operations manager April 1, 2013.
12 Mar 2013debt financing▼ Bad
Credit Suisse waived the minimum-production requirement for the quarter ending March 31, 2013 under both loans, and for the $75 million loan also waived a provision relating to first production from the CX-15 platform. This is the third quarter in a row waivers were needed. The filing gives no production figures.
22 Jan 2013production update● NeutralMajor
BPZ announced a 2013 plan of about $27 million net spending on its three onshore blocks, with Block Z-1 spending fully carried by Pacific Rubiales (BPZ's 51% share budgeted at $76 million, $149 million gross). Fourth-quarter 2012 Z-1 production was 1,517 bopd net (2,973 gross), reflecting the 51% share after closing. CX-15 first well is now expected in early February 2013 (earlier plan was October 2012 drilling) with first oil in Q2 2013; the 3D seismic cost estimate rose to about $52 million gross from $42 million and CX-15 to about $83 million gross from $77 million.
17 Jan 2013debt financing▼ Bad
Credit Suisse again waived the minimum-production requirement, this time for the quarter ended December 31, 2012, under both the $75 million and $40 million loans. The requirement was 140,000 barrels; BPZ's estimated 51% share was 139,500 barrels (273,500 gross), just under the minimum. This repeats the waiver from the prior quarter.
2 Jan 2013asset acquisition disposition▲ GoodMajor
On December 26, 2012 BPZ closed the sale of a 49% interest in Block Z-1 to Pacific Rubiales and received the remaining $85 million of the $150 million price. This resolves the April 2012 deal, closed early after the parties waived the condition requiring Peruvian government approval; the Supreme Decree authorizing the license amendment was signed December 29, 2012, and the July 31, 2013 outside date was removed. Pacific Rubiales also funds $185 million of BPZ's share of spending, some carry loans were extinguished, and BPZ must repay Pacific Rubiales' investment if the Peruvian government does not recognize the license benefits within a year (other than for fault). Credit Suisse loan agreements were amended and BPZ had to fund debt service reserve accounts in the amount of outstanding principal.