BPZ Resources, Inc. - Shareholder.com

More documents

Recommendations

Info

The following table sets forth the standardized measure of discounted future net cash flows from projected production of the Company’s crude oil reserves for the year ended December 31, 2010, 2009 and 2008 (in thousands): December 31, 2010 Future cash inflows (3).............................................................................................. $ 2,990,334 Future production costs ............................................................................................. (500,267) Future development costs .......................................................................................... (383,728) Future income tax expenses....................................................................................... (403,964) Future net cash flows................................................................................................. 1,702,375 Discount to present value at 10% annual rate............................................................ (604,014) Standardized measure of discounted future net cash flows relating to proved natural gas, natural gas liquids and crude oil reserves........................................... $ 1,098,361 Company’s share of cost method investees’ standardized measure of discounted future net cash flows (1) ........................................................................................ $ 9,924 December 31, 2009 Future cash inflows (3).............................................................................................. $ 2,147,862 Future production costs ............................................................................................. (402,673) Future development costs .......................................................................................... (402,600) Future income tax expenses....................................................................................... (256,746) Future net cash flows................................................................................................. 1,085,843 Discount to present value at 10% annual rate............................................................ (347,284) Standardized measure of discounted future net cash flows relating to proved natural gas, natural gas liquids and crude oil reserves........................................... $ 738,559 Company’s share of cost method investees’ standardized measure of discounted future net cash flows (1) ........................................................................................ $ 6,898 December 31, 2008 Future cash inflows (3).............................................................................................. $ 648,414 Future production costs ............................................................................................. (103,999) Future development costs .......................................................................................... (127,300) Future income tax expenses....................................................................................... (62,240) Future net cash flows................................................................................................. 354,875 Discount to present value at 10% annual rate............................................................ (55,948) Standardized measure of discounted future net cash flows relating to proved natural gas, natural gas liquids and crude oil reserves........................................... $ 298,927 Company’s share of cost method investees’ standardized measure of discounted future net cash flows (1)(2) ................................................................................... $ 2,756 (1) Investment in Ecuador Property (2) Based on an independent reservoir engineer’s report provided by the operator of the Santa Elena property. (3) The per barrel price used in determining future cash inflows for the year ended December 31, 2010, 2009 and 2008 were $76.92, $57.30 and $37.80, respectively. 110
The following table sets forth the principal changes in the aggregate standardized measure of discounted future net cash flows attributable to the Company’s proved crude oil reserves for the year ended December 31, 2010, 2009 and 2008: 111 Year Ended December 31, 2010 2009 2008 (in thousands) Standardized measure of discounted future net cash flows, beginnning of the year .......................................................................................... $ 738,559 $ 298,927 $ 556,682 Sales and transfers of natural gas, natural gas liquids and crude oil produced, net of production costs .................................................. (79,547) (24,341) (51,306) Change in estimated future development costs.................................. (88,751) (303,666) — Net changes in prices and production costs ....................................... 387,269 221,655 (368,287) Extensions, discoveries, additions and improved recovery, net of related costs ................................................................................... 107,711 624,402 160,831 Development costs incurred............................................................... 63,672 78,782 82,845 Revisions of previous quantity estimates and development costs...... 1,012 (58,805) (42,462) Accretion of discount......................................................................... 51,417 24,559 30,501 Net change in income taxes ............................................................... (79,113) (119,579) (64,330) Changes in timing and other .............................................................. (3,868) (3,375) (5,547) Standardized measure of discounted future net cash flows, end of the year .................................................................................................... $ 1,098,361 $ 738,559 $ 298,927 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES None. ITEM 9A. CONTROLS AND PROCEDURES (a) Evaluation of Disclosure Controls and Procedures We performed an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, our principal executive officer and principal financial officer have concluded that as of December 31, 2010 our disclosure controls and procedures, as defined in Rule 13a-15(e), are effective to ensure that information we are required to disclose in the reports we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Our disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures. (b) Changes in Internal Control Over Financial Reporting There was no change in the Company’s internal control over financial reporting during the quarter ended December 31, 2010 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. (c) Management’s Annual Report on Internal Control over Financial Reporting Management of the Company, including our principal executive officer and principal financial officer, is responsible for establishing and maintaining adequate internal controls over financial reporting, as defined in Rule 13a-15(f) of the Securities Exchange Act of 1934, as amended. Our internal controls are designed to provide reasonable assurance as to the reliability of our financial reporting and the preparation and presentation of the consolidated financial statements for external purposes in accordance with accounting principles generally accepted in the United States, as well as to safeguard assets from unauthorized use or disposition. Management conducted an evaluation of the effectiveness of our internal controls over financial reporting based on the framework in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. This evaluation included review of the documentation of controls, evaluation of the design effectiveness of controls, testing of the operating effectiveness of controls and a conclusion on this evaluation. We did not identify any material weaknesses in
Page 1 and 2:
BPZ 2010 ANNUAL REPORT
Page 3 and 4:
Manuel Pablo Zúñiga-Pflücker Pre
Page 5 and 6:
I would like to express my sincere
Page 7 and 8:
Company drilled and completed at th
Page 9 and 10:
UNITED STATES SECURITIES AND EXCHAN
Page 11 and 12:
PART I BPZ Resources, Inc. cautions
Page 13 and 14:
Our Competition Intense competition
Page 15 and 16:
License contracts are subject to ro
Page 17 and 18:
Although we believe our operations
Page 19 and 20:
Our reserve estimates depend on man
Page 21 and 22:
The debt facility matures on July 2
Page 23 and 24:
• clean-up responsibilities; •
Page 25 and 26:
• although we plan to enter into
Page 27 and 28:
esult in the suspension of our curr
Page 29 and 30:
We may not be able to replace our r
Page 31 and 32:
Because we are a relatively new pub
Page 33 and 34:
the existing platform located in th
Page 35 and 36:
In connection with the first explor
Page 37 and 38:
In addition, the Board of Directors
Page 39 and 40:
Block Z-1 Seismic Acquisition Altho
Page 41 and 42:
Performance Graph The following gra
Page 43 and 44:
(1) In our Form 10K for the year en
Page 45 and 46:
Oil Development General We will con
Page 47 and 48:
The A-16D well was originally inten
Page 49 and 50:
agreements; and change in control.
Page 51 and 52:
We estimated our non-convertible bo
Page 53 and 54:
Loan Agreement. The amount availabl
Page 55 and 56:
wells and regular maintenance, the
Page 57 and 58:
million of salary and salary relate
Page 59 and 60:
of revenue to offset our deferred t
Page 61 and 62:
Lease Operating Lease operating exp
Page 63 and 64:
The income tax expense (benefit) fo
Page 65 and 66:
cash of $6.4 million and in 2008 pr
Page 67 and 68: Long-Term Debt and Capital Lease Ob
Page 69 and 70: (2) prior to January 1, 2015, durin
Page 71 and 72: Other In July 2009, we, through our
Page 73 and 74: (1) Includes operating leases for o
Page 75 and 76: Revenue Recognition We recognize re
Page 77 and 78: Interest Rate Risk. As of December
Page 79 and 80: ITEM 8. FINANCIAL STATEMENTS AND SU
Page 81 and 82: To the Board of Directors and Stock
Page 83 and 84: BPZ Resources, Inc. and Subsidiarie
Page 85 and 86: BPZ Resources, Inc. and Subsidiarie
Page 87 and 88: investment under the cost method. A
Page 89 and 90: Oil and Gas Accounting Reserves Det
Page 91 and 92: Loss per Common Share In accordance
Page 93 and 94: Note 5 — Property, Equipment and
Page 95 and 96: Activity related to the Company’s
Page 97 and 98: The Company estimates the cash paym
Page 99 and 100: holders of the 2015 Convertible Not
Page 101 and 102: an amended registration statement w
Page 103 and 104: there was $1.2 million of total unr
Page 105 and 106: Additional Fair Value Disclosures $
Page 107 and 108: costs related to the platform in th
Page 109 and 110: Note 17 — Business Segment Inform
Page 111 and 112: minority position in the project. H
Page 113 and 114: of the subjective decisions require
Page 115 and 116: Costs Incurred in Oil and Natural G
Page 117: (1) Includes crude oil, condensate
Page 121 and 122: (d) Attestation Report To the Board
Page 123 and 124: PART IV ITEM 15. EXHIBITS AND FINAN
Page 125 and 126: Net acres or net wells. The sum of
Page 127 and 128: INDEX OF EXHIBITS 2.1 Plan of Conve
Page 129 and 130: Company Information Board of Direct
show all

BPZ Resources, Inc. - Shareholder.com

Create successful ePaper yourself

Delete template?

Save as template?