BPZ Energy (NYSE:BPZ) announced Q4’11 and year-end 2011 financial and operational results for the period ended December 31, 2011.

For the full year 2011, BPZ reported a net loss of $33.8 million, or a loss of $0.29 per share, compared to a net loss of $59.8 million, or $0.52 per share, for the same period last year.Net revenue for 2011 totaled $143.7 million compared to $110.5 million during 2010. Total oil production during 2011 averaged 3,770 BOPD compared to 4,185 BOPD for the same period in 2010.

BPZ reported its 2011 year-end total proved crude oil reserves estimate is 34.7 MMBO compared to 38.9 MMBO at year-end 2010. BPZ’s reserves were prepared by Netherland Sewell & Associates.

Click here for the news release.

Click here for the webcast of the conference call.

OAG360 Comments:

Investors tell us that they have been in a holding pattern while BPZ continues to: put the necessary operational pieces in place, searches for the appropriate joint venture partner in Blocks XIX and XXIII, and finalizes a joint venture agreement in Block Z-1 in Peru. There’s no rest for the weary.

During 2011 and in early 2012, BPZ continued to set the operational foundation at the Albacora and Covina Fields by installing reinjection equipment on the Albacora Field platform, implementing a gas cap reinjection program at the Corvina Field and starting artificial lift programs to optimize production at both fields. In addition, BPZ began building its new Corvina CX-15 platform, completed seismic interpretation of new data at onshore Blocks XXII and XXIII, and commenced a new 3-D seismic survey in offshore Block Z-1. We believe execution will be the next step in unlocking asset value for BPZ and investors will be waiting anxiously as the joint venture agreement closes and drilling begins in Block Z-1.

With most of the pieces in place, perhaps the most captivating news is the company update on its search for a joint venture project for Block Z-1. The company said on the Q4’11 conference call that they are finishing documents and that the process should be completed in March 2012 with an announcement being made shortly thereafter.

Simultaneously, the company began a seismic survey at Block Z-1 covering 1,500 square kilometers. Exiting 2011 with cash and cash equivalents of $58.2 million and a working capital surplus of $49.2 million provides ample liquidity to fund future drilling campaigns in this offshore field. Richard S. Menniti, the Chief Financial Officer of BPZ Resources, said during the Q4 2011 conference call, “Our plan is to close the joint venture…and we see that as a key liquidity event for the company going forward.” Additionally, an established joint venture partner at Block Z-1 should significantly increase the development pace and address any funding gaps to efficiently explore and develop this asset.

Onshore, the company began the process of seeking a partner for Blocks XIX and XXIII and completed a 2D and 3D seismic survey for Block XXIII. Still in the early stages of finding a partner, we believe these onshore blocks provide significant upside potential to BPZ’s inventory portfolio of which the company has said could commence exploratory drilling as early as 2013.

In addition to solidifying and initiating its joint venture programs, BPZ has the following goals in Peru for 2012. We believe the joint venture agreement should complement most of these:

  • Achieving commerciality at Albacora Field
  • Optimizing oil production via artificial lift
  • Developing 23 MMBO of Corvina PUDs from new CX-15 platform
  • Exploring onshore and offshore
  • Unlocking asset value


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