February 10, 2010 (FinancialWire) — BPZ Resources, Inc., doing business as BPZ Energy, (NYSE: BPZ) has closed its previously reported offering of $140 million principal amount of 6.5% convertible senior notes due March 1, 2015.

The company also granted to the initial purchaser of the notes a 30-day option to purchase an additional $21 million aggregate principal amount of the Notes. The notes were sold in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. In addition, until March 15, 2010, the International Finance Corp.  has the right to participate in the offering, which if exercised would increase the size of the offering.

The notes will be convertible under certain circumstances and during certain periods at an initial conversion rate of approximately 148.38 shares of BPZ’s common stock per $1,000 principal amount of Notes, representing an initial conversion price of approximately $6.74 per share of BPZ common stock, which is equal to an approximate 20% conversion premium over the negotiated reference price.

Net proceeds from the sale of the Notes, after deducting the discounts and commissions and any offering expenses payable by the company, were approximately $135.5 million. The company intends to use the net proceeds for general corporate purposes, including without limitation, capital expenditures and working capital, reduction or refinancing of debt, or other corporate obligations.

Houston based BPZ Energy is an oil and gas exploration and production company which has exclusive license contracts for oil and gas exploration and production covering approximately 2.2 million acres in four properties in northwest Peru.

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