BPZ Resources, Inc. (BPZ) Offers A Compelling Valuation

Analysts at Thomas Weisel Partners Group, Inc. (NASDAQ: TWPG) have released an update on BPZ Resources, Inc. (NYSE: BPZ). The company has announced a $140 million offering of 6.5% convertible notes due 2015. The notes will be convertible, subject to certain conditions, into common shares at $6.74 per share.

The company has been in need of external funding for some time. According to analysts, the offering of $140 million convertible notes will address the short term working capital concerns.

With funding concerns addressed, analysts expect the market to focus on a number of upcoming material operations that they expect the company to deliver in the next two months.

According to analysts, the company is trading well below its PI reserve valuation. Analysts believe that the company offers a compelling valuation at current levels.

Analysts have maintained an Overweight rating for BPZ Resources, Inc., with a price target of $11.50.