BPZ Resources unit secures $70M credit facility

HOUSTON - BPZ Resources Inc., an oil and gas exploration and production company, said Tuesday that a subsidiary has secured commitments for a $70 million senior debt credit facility.

BPZ Exploracion & Produccion SRL will have a revolving line of credit that will be used to meet the company's capital expenditure budget for oil development at the Corvina and Albacora fields in Peru.

French bank Natixis is leading syndication of the facility. Others participating include the International Finance Corporation, Scotiabank and Banco de Credito del Peru.

"We plan to continue to balance our 2009 capital expenditures with free cash flow, funds available from our recent registered offering and to the extent necessary by drawing on the credit availability," said Chief Financial Officer Ed Caminos in a statement.

BPZ expects the credit facility to close in the third quarter, if certain customary conditions are met.

BPZ shares jumped 34 cents, or 7.4 percent, to $4.92 in after-hours electronic trading, after falling 20 cents, or 4.2 percent, to finish the regular session at $4.58. The stock has traded between $2.25 and $28.48 during the past 52 weeks.

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