BPZ Resources, Inc. Files For Bankruptcy in Victoria, Texas

On March 9, 2015, BPZ Resources, Inc. (“BPZ” or “Debtor”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas in Victoria, Texas.  The filing by BPZ comes barely twenty-four hours after the Chapter 11 bankruptcy filing by Dune Energy, Inc. and certain of its affiliates in Austin, Texas.According to the declaration of J. Dunkin Ledgard (the “Ledgard Declaration”)—that was filed in conjunction with the Debtor’s first day pleadings—BPZ is a holding company that operates through various subsidiaries in Texas, Peru, and Ecuador.  The subsidiaries were not put into bankruptcy.  A copy of the Ledgard Declaration can be accessed here:  Download Ledgard Declaration.A copy of the corporate organization chart for BPZ and its various non-debtor subsidiaries (collectively, the “Company”) can be accessed here:   Download BPZ Resources Org Chart.According to the Ledgard Declaration, the Company’s only revenue producing asset is a license contract with Perupetro S.A.(“Perupetro”), a corporation owned by the Peruvian government, to explore, drill and produce hydrocarbons from a block located in the coastal waters off the northwest coast of Peru (“Block Z-1”).  In April 2012, the Company formed an unincorporated joint venture with a subsidiary of Pacific Rubiales to explore and develop Block Z-1.  As of February 2015, the wells on Block Z-1 were producing approximately 2,400 barrels of oil per day, net to the Debtor’s interest.  This production is transported by tanker to the Perupetro refinery in Talara, Peru.  Ledgard Declaration at 3-5.BPZ’s indebtedness includes approximately $225.6 million in unsecured notes, $59.9 million of which was scheduled to mature on March 1, 2015 with a 10 day grace period.  The remainder matures in 2017.  In addition, BPZ has guaranteed certain exploration obligations pertaining to the drilling activities on Block Z-1, a guarantee that must stay in place for the Company to continue its activities on this block.  Ledgard Declaration at 6-7.For further information, please contact a Thompson & Knight Bankruptcy and Restructuring Attorney. For more information on the Thompson & Knight’s Bankruptcy and Restructuring Practice, please visit www.tklaw.com/bankruptcy-and-restructuring/.