A subsidiary of Houston-based oil and gas exploration and production company BPZ Resources Inc. has terminated negotiations on a planned $55 million reserve based credit facility. BPZ Exploracion & Produccion SRL has elected to terminate the negotiations being arranged by Natixis. The termination does not affect the previously closed and funded $15 million International Finance Corp. (IFC) facility. BPZ will evaluate its future secured credit requirements and consider all alternatives.
Ed Caminos, BPZ’s CFO, commented, "Proceeds from the Convertible Notes Offering should allow us to undertake our 2010 capital expenditures program, including drilling and continued development of Corvina and Albacora." Caminos concluded, "Once Corvina and Albacora reserves and production have been firmly established with a more solid base, we anticipate that future financing options such as a reserves based credit facility will become more accessible and with more acceptable terms."