July 8, 2009 (FinancialWire) — BPZ Resources, Inc. (AMEX: BPZ) said that its BPZ Exploracion & Produccion S.R.L. subsidiary has secured commitments for a $70 million reserve based credit facility.

The syndication of this facility is led by Natixis, a French bank. The other institutions participating in the syndicate include the International Finance, Scotiabank and Banco de Crédito del Perú.

According to BPZ, the facility will provide BPZ Exploracion & Produccion, with a revolving line of credit for capital expenditures and working capital and will be secured by a pledge of the ownership units of the borrower.

The facility will be utilized as needed to meet the company’s 2009 capital expenditure budget for oil development at the Corvina and Albacora fields, both of which are located in offshore Block Z-1in Northwest Peru.

BPZ said that the facility is a senior secured revolving credit facility maturing four years from the date of closing, and bears interest at LIBOR plus 7.0%. A commitment fee of 3.50% will be paid on the unutilized portion of the borrowing base. The $70 million Facility includes the $15 million previously received under an IFC senior note.

Houston-based BPZ Energy is an oil and gas exploration and production company that has license contracts for oil and gas exploration and production covering around 2.4 million acres in four properties in northwest Peru. It also owns a ten percent working interest in a producing property in southwest Ecuador.

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) web site (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Free annual reports for companies mentioned in the news are available through the Free Annual Reports Service (http://investrend.ar.wilink.com/?level=279).

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.