BPZ Resources Plans To Conserve Capital/ Limit Production Growth
According to a recent report by Wunderlich Securities, after the recent negative results of at Albacora, BPZ Resources, Inc. (NYSE: BPZ) plans to step back to assess its assets.
Wunderlich believes shooting seismic and other steps are the right decision as it should help conserve capital and hopefully provide more certain exploration down the line. However, with the capital conservation comes less production upside than previously expected.
Wunderlich is maintaining its Hold rating and $5.00 per share price target based on 3P reserves and undeveloped acreage. It believes management has to begin tackling credibility with investors that can only come through execution and the balance sheet remains a concern.
BPZ is trading lower at $13.21
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