Houston-based BPZ Energy said Tuesday it is looking to offload most of its assets in a single transaction after filing for Chapter 11 bankruptcy protection in March.
The company said its board of directors has determined that “it is in the best interest of the company’s stakeholders” for BPZ to undertake an “organized process” to attempt to sell “substantially all of its assets” in a single transaction.
BPZ has been evaluating potential strategic alternatives tied to its Chapter 11 filing.
The company said it has considered pursuing a strategic transaction with a third party, such as a merger or sale.
It has also considered the reinvestment of the company’s liquid assets in “favorable opportunities” and pursuing third party financing for ongoing operations.
“However, the process to date has not yielded any opportunities likely to provide greater realizable value than attempting to sell, in a single transaction, substantially all of its assets, given current market conditions and other factors,” BPZ said.
BPZ is an independent oil and gas exploration and production company with license contracts covering about 1.9 million net acres in four properties in northwest Peru.
The company filed for Chapter 11 bankruptcy protection with the United States Bankruptcy Court for the Southern District of Texas on March 9.
BPZ’s direct and indirect subsidiaries were not included in the filing.
“Given the industry downturn and our inability to find a suitable financing resolution to our current debt maturity and interest payments, it has become necessary to pursue the Chapter 11 process. Our efforts to negotiate additional financing to fund business activities and pursue identified strategic alternatives were further impeded when oil prices plummeted and production growth faltered, creating additional obstacles to our restructuring efforts,” BPZ president and CEO Manolo Zuniga said when the petition was filed.