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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: CommanderCricket who wrote (92925)	11/14/2007 8:02:25 AM
From: Ed Ajootian	of 206209

BPZ Energy (BZP) -- Great to see first production come on schedule and pretty much as advertised. I was disappointed at first that the 14D well "only" got up to 1,900 bopd, but given that this means it will still pay out in less than 3 months, I'm not gonna complain too much! I believe getting these wells online was the only thing standing in the way of them getting the convertible debt financing from IFC, so I would expect news of that closing within a week. As of 9/30 they were down to just $10 M in cash, so based on their cash burn rate of ~ $5 M a month to keep their rig going, keep the refurbishment of their Albacora platform going, plus pay G&A, it looks like that cash will be coming in none too soon. They supposedly will get paid for their oil deliveries within 15 days of delivery. I'll believe that when I see it. The refinery that they are delivering the oil to presently imports oil from Ecuador. It will be interesting to see how much hype this replacement of Ecuador-sourced oil with domestic-sourced oil gets in the local Peruvian press.

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