Pacific Rubiales Energy to Expand its E&P Portfolio in Peru by Acquiring 49% Interest in Block Z-1 from BPZ Energy for $335m – Deal Analysis from GlobalData
Summary
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.
Scope
Reasons to buy
Keywords
Block Z-1, Corvina Oil Field, Albacora Field, Piedra Redonda Field, Block XIX and Block XXIII
Summary
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.
Scope
- 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
Keywords
Block Z-1, Corvina Oil Field, Albacora Field, Piedra Redonda Field, Block XIX and Block XXIII
1 TABLE OF CONTENTS
1.1 List of Tables
1.2 List of Figures
2 PACIFIC RUBIALES ENERGY TO ACQUIRE 49% INTEREST IN BLOCK Z-1 FROM BPZ ENERGY FOR $335M
2.1 Deal Overview
2.2 Deal in Brief
2.3 Pacific Expands its E&P Portfolio in Peru by Acquiring Block Z-1
2.4 BPZ Enters into Partnership with Pacific in Block Z-1 to Fund its E&P Program
2.5 Deal Financials and Valuations
3 APPENDIX
3.1 Methodology
3.2 Contact Us
3.3 Disclaimer
LIST OF TABLES
Table 1: Peru, Major Deals of Pacific, Since 2009 till Present
Table 2: Peru, Exploration Wells in Block Z-1, 2012
Table 3: Companies Involved
Table 4: Financials of the Deal
Table 5: Advisor Information
Table 6: Target Information
Table 7: Target’s Production and Reserves Information
Table 8: Company Valuation Multiples
Table 9: Commodity Prices in $, Last Close
Table 10: Acquirer Information
Table 11: vendor Information
LIST OF FIGURES
Figure 1: Peru, Location of Existing Exploration Blocks on the Map, 2012
Figure 2: Increase in Pacific’s 2P Reserves Following the Acquisition, MMboe, 2012
Figure 3: Peru, Location of Block Z-1 in the Map, 2012
1.1 List of Tables
1.2 List of Figures
2 PACIFIC RUBIALES ENERGY TO ACQUIRE 49% INTEREST IN BLOCK Z-1 FROM BPZ ENERGY FOR $335M
2.1 Deal Overview
2.2 Deal in Brief
2.3 Pacific Expands its E&P Portfolio in Peru by Acquiring Block Z-1
2.4 BPZ Enters into Partnership with Pacific in Block Z-1 to Fund its E&P Program
2.5 Deal Financials and Valuations
3 APPENDIX
3.1 Methodology
3.2 Contact Us
3.3 Disclaimer
LIST OF TABLES
Table 1: Peru, Major Deals of Pacific, Since 2009 till Present
Table 2: Peru, Exploration Wells in Block Z-1, 2012
Table 3: Companies Involved
Table 4: Financials of the Deal
Table 5: Advisor Information
Table 6: Target Information
Table 7: Target’s Production and Reserves Information
Table 8: Company Valuation Multiples
Table 9: Commodity Prices in $, Last Close
Table 10: Acquirer Information
Table 11: vendor Information
LIST OF FIGURES
Figure 1: Peru, Location of Existing Exploration Blocks on the Map, 2012
Figure 2: Increase in Pacific’s 2P Reserves Following the Acquisition, MMboe, 2012
Figure 3: Peru, Location of Block Z-1 in the Map, 2012
