Pacific Rubiales Energy Acquiring 49% Interest in Block Z-1 from BPZ Energy - Deal Analysis


Naperville, IL -- (SBWIRE) -- 07/11/2012 -- Pacific Rubiales Energy Corp (Pacific) agreed to acquire a 49% participating interest in Block Z-1, offshore Peru, from BPZ Energy, Inc. (BPZ) for a purchase consideration of $335m. As a part of the consideration, Pacific will pay $150m in cash and $185m is subject to a commitment of BPZ's share of capital and exploratory expenditures in Block Z-1.

Under the terms of the agreement, BPZ received $65m in cash upon the signing of the agreement along with additional funds for each partner's share of capital and exploratory expenditures incurred on Block Z-1 as of January 1, 2012. BPZ will receive an additional $85m upon receiving approval from the Peruvian regulatory authorities. BPZ Exploracion & Produccion S.R.L. (BPZ E&P), a subsidiary of BPZ Energy, will continue to be the operator of the Block Z-1 license contract and will retain a 51% participating interest.

Credit Suisse (USA), Inc. and Tudor, Pickering, Holt & Co., LLC are acting as financial advisors to BPZ Energy, while Bank of America Merrill Lynch and GMP Securities L.P. are acting as financial advisors to Pacific Rubiales in the transaction.
The transaction is subject to the approval of the Peruvian regulatory authorities.


- Rationale behind acquisition of 49% working interest in Block Z-1 from BPZ Energy by Pacific Rubiales Energy
- Stratigic benefits for the companies involved in the transaction
- Geography covered - Peru

Reasons to buy

- Develop a sound understanding of the major M&A's, Partnerships, and Joint Ventures undertaken by Pacific Rubailes.
- Rationale behind the acquisition of Block Z-1 of BPZ Energy.
- Identify the reason of Pacific Rubiales Energy acquiring workinginterest in Block Z-1


Block Z-1, Corvina Oil Field, Albacora Field, Piedra Redonda Field, Block XIX and Block XXIII

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