Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (88889)	8/7/2007 3:14:58 PM
From: CommanderCricket	Respond to of 206148

BZP is debt free but will need money to finance the Corvina gas-to-power project. I'll get you a better answer after the market closes

To: energyplay who wrote (88889)	8/7/2007 3:33:56 PM
From: CommanderCricket	Read Replies (1) \| Respond to of 206148

EP, Here's the PR from mid June. They have enough monies to get through til early next year. I believe the Gas-to-power plant will be financed through the world bank or IMF. Ed A. may have the specifics on this. BPZ Energy Announces $2.7 Million Equity Over-Allotment Placement Monday June 18, 6:05 am ET HOUSTON--(BUSINESS WIRE)--BPZ Energy, Inc. (AMEX:BZP - News) today announced that it closed an over-allotment of 500,000 shares of common stock at a price of $5.40 for an additional $2.7 million dollars. The over-allotment was offered under the same terms and conditions, except for the price, to the investors that participated in the recently completed $35 million private placement. No warrants or dilutive securities will be issued to the investors in connection with the private placement. The shares are being placed directly by the Company and there are no placement fees. However, the Company retained Morgan Keegan & Company, Inc., as its financial advisor in connection with this transaction. This transaction is contingent upon approval of the additional listing of shares by the American Stock Exchange. These funds will be used, in part, to support the exploration commitment for Block XXII, located onshore in the Lancones basin, for which the Company has been qualified as the bonafide operator and is in the process of finalizing the license contract. The Company expects to receive in the near future the qualification as bonafide operator for Block XXIII, located onshore in the Tumbes basin adjacent to the Company's offshore Block Z-1 and onshore Block XIX. Manolo Zuniga, President and CEO of BPZ Energy, said: "Given the industry's increasing level of interest in Peru, we are very pleased with the progress made in our negotiations for finalizing the license contracts for Blocks XXII and XXIII. These additional funding demonstrates once again the support we have from our investors to ensure the Company will comply with the work commitments under these license contracts."

To: energyplay who wrote (88889)	8/7/2007 4:25:56 PM
From: architect*	Read Replies (1) \| Respond to of 206148

EP, BZP Energy: Corvina oil development and gas to power project resources, capital expenditures, and finances are discussed on pages 19 -24 of the Q1 2007 report. yahoo.brand.edgar-online.com There's a lot of pieces in this little puzzle <lol> - john

To: energyplay who wrote (88889)	8/7/2007 7:25:07 PM
From: Ed Ajootian	Read Replies (2) \| Respond to of 206148

energyplay, BPZ Energy (BZP) -- they don't have any convertible securities outstanding. Maybe someone is expecting a new stock issue but from what I can tell they won't need more funds until they have completed both their current well (that is near TD) and 1 more. This translates to November or so. They do have some cheap options out that had been issued to the former managment/owners of Navidec, the shell that they reverse-merged into. Maybe the owners of these options have shorted stock in the open market in order to lock in their gains. As of 3/31 there were about .9 M of $1.30 options out and 1.2 M of $2 options out. So even if all of the options have been covered by shorts there is still a fair amount of naked short position outstanding. Regarding your last questions, the answers are "yes & yes", at least to a degree. BPZ needs something like another $100 M to finance their gas-to-power project, but the plans are to get all of those funds in the form of straight debt from the IFC. But in order to keep their rig turning to the right after November, they will need some more financing of some kind. Given that, if they stay on schedule, they will only be about a month or 2 from getting into production by then, I'm thinking they might be able to do some sort of convertible preferred financing instead of straight common equity. This would reduce the amount of dilution, since usually the conversion price of the preferred ends up to be around a 25% premium to the common. It was very encouraging to see the 169K share cross at $4.51, after market close today. Not sure why someone would be in such a hurry to buy that many shares, especially given what the short-term chart looks like, but I guess somebody with mucho dinero just decided they wanted to get these shares now. Regarding the question you pose at msg. #88901, I have a hunch that we are seeing some sort of bear raid going on here. Let's say virtually all of the shares shorted are in fact naked shorts (nothwithstanding what I say above about the cheap options). The folks that shorted those 3 M shares could stand to profit quite handsomely by continuing to short the hell outta this turkey, during this period of relative news vacuum, and as long as they keep the stock price chart looking sucky they can rest assured that most of the retail crowd will avoid buying and probably even join them in shorting. Needless to say I can't wait for this month's short interest to come out.