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WOW!!! Big 8K out tonight...
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT: June 12, 2009
Blast Energy Services, Inc.
"ITEM 5.02. DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.
On June 12, 2009, Blast Energy Services, Inc.’s (“Blast” or the “Company”) board of directors implemented cost cutting measures to reduce overhead costs and conserve cash, including partial and full furloughs of management and staff with reduced or no pay, respectively. As such, John O’Keefe, President and CEO, has been furloughed without pay, effective June 15, 2009, and therefore will not serve as President or CEO until such time as he returns to the Company, if ever. John MacDonald, CFO and Corporate Secretary, and Andrew Wilson, VP Business Development, have been reduced to half pay until October 2009 at which time payment is expected to be received from Quicksilver. The Blast Board of directors has appointed Michael L. Peterson, a current member of the board, to serve as interim President and CEO in the absence of Mr. O’Keefe.
Michael L. Peterson, age 47, joined the board as a director in May 2008. He is currently Chairman and CEO of Solargen Energy Inc, a developer of utility scale solar farms, and managing partner of Californiabased Pascal Management, a registered Investment Advisor. For a majority of his career, Mr. Peterson was employed by Goldman Sachs & Co. as a Vice President with the responsibility for a team of professionals that advised and managed over $7 billion in assets. In 2000, he joined Merrill Lynch as a First Vice President to help form their Private Wealth Services division. In 2004, Mr. Peterson left Merrill Lynch to establish his own private investment firm. Mr. Peterson received his MBA at the Marriott School of Management and a B.S. from Brigham Young University. He is also a director of AE Biofuels, a company controlled by Eric McAfee, who is affiliated with Berg McAfee Companies, LLC, our largest shareholder.
ITEM 8.01. OTHER EVENTS.
Following recent discussions with Reliance Oil & Gas,(“Reliance”), Blast plans to move the Company’s Applied Fluid Jetting (“AFJ”) rig and equipment back to Texas where it will be maintained and supported by Reliance. Blast and Reliance are currently in negotiations with an independent third party for the deployment of the AFJ Rig on a cash for services basis.
Reliance was the operator of the AFJ rig in each of the previously reported successful drilling programs in Texas where the AFJ technology was proven earlier this year. Blast and Reliance currently have a revenue sharing agreement under which Reliance will operate the AFJ rig at no cost to Blast and will share 50% of the revenues generated by the rig.
Recent operations in Kentucky were hampered by mechanical problems with the surface equipment as reported in a press release issued June 3, 2009, and filed herewith. Subsequently, a failure to the rig’s hydraulic pump system prohibited the rig from resuming jetting operations in a reasonable timeframe. As a result, operations in Kentucky were suspended and the AFJ rig and support vehicles have moved temporarily back to the Company’s storage yard in Oklahoma.
The Company will also continue to pursue additional financing options and explore potential strategic opportunities to help fund this promising AFJ technology and to maintain the Company’s viability, while collecting payments on its $3.6 million Quicksilver receivable, but can make no assurances that financing will be obtained on favorable terms, if at all."
Flatsixer
No, the reason that Matt is "laying low" is because his attorneys have given him a complete rundown on the severity of these charges and have told him explicitly to avoid IHub.
Attendant to that is a forward assessment of punishment options combined with how expensive all of this will be.
To return to this board and engage posters is absurd. A few wrong words could complicate matters extensively and ONLY lead to further problems.
Honestly...If I were Matt's attorney I'd drop him as a client if he returned and posted written comments on IHub.
This ain't no game.
Not at all.
The "bloodthirsty pack of wolves that would instantly attack and accuse" here on IHub are nothing compared to the pack of wolves who presently have him by the throat and gonads.
Flatsixer
Yeah...in the grand scheme it does matter. It matters a lot actually. If you want me to explain further, shoot me an email to...
Flatsixer2@yahoo.com
Flatsixer
Agree with your post completely ratso...and plz consider that my original was put up at 5:17AM, lol.
Those guys chose a HORRIBLE route for transporting the cash. Very amateur.
Flatsixer
I can read that most of you don't realize how numerous the drug interdiction cops are in the Southern US.
There are entire squads of specially trained cops and k-9s who patrol the interstates with the sole purpose of finding and seizing cash/dope/contraband.
Here in NFLa most efforts are concentrated just across the GA and SC border. If you are a single Hispanic male driving a nice rental car from NY...well uhhm...you'd better be driving 1 mile under the speed limit, lol. 1mph under though and not 2mph under the limit because that is considered suspicious behavior too...;^))
Flatsixer
Actually, it makes total sense to use a Southern route to drive cross country during winter months. The driver was stopped on 8Feb...by staying to the South, the weather would be much better.
Unfortunately for the mule, the cops across the Southern border states are well educated in discovery and seizure of drugs, contraband, and cash. The whole trick unraveled quickly IMO under skilled roadside interrogation.
Flatsixer
Link to the Yahoo BESV PR...
http://finance.yahoo.com/news/Blast-Energy-Provides-prnews-15427426.html?.v=1
Flatsixer
OK, well, there is confirmation that Blast is active and pressing to perform in Kentucky as planned...
"Blast deployed their proprietary applied fluid jetting rig to Kentucky in May to begin working toward cash for services contracts and a production sharing contract."
Flatsixer
No, don't remove any of those accounts. They are a pretty interesting read...what does it hurt to leave them?
Flatsixer
Not just to be involved in this type of scheme again, yes!
But also, not to be involved with such types of influences and friends such as those who have far less to lose than he. "Friends" who parlay their relationship with someone to the extent of become criminal fall partners down the road.
Actually, as I read around IHub...IMO I can see a whole new cadre of "supportive" friends who are seizing this opportunity to further their relationship with Matt right now. Oh yes, so friendly and pressing for a future advantage perhaps?
A second wave of opportunists has been born IMO. Disgusting.
Flatsixer
mr_happy...I hope you and others give Matt a little time to digest what has really happened and the forward implications of being criminally indicted on a Federal level.
This entire matter will be a life changing event. Whatever the final disposition and what eventually plays out...the stigma of these charges will influence and affect him for the rest of his life. I think it takes awhile for that to really sink in for someone involved with a high profile criminal event.
He's going to be astonished how much this will change his future...and he can't ever put it behind him.
Flatsixer
Reduced punitives, probation, deferred judgement, or no charges at all in return for connecting all of the dots. They'll have to keep cooperating through all of the preliminary hearings, motions hearings, and of course trial testimony if it gets that far.
There is an awful lot to play out here guys...in reality there is no honor among thieves...pure myth when jail time is on the table. Especially Fed time...you do at least 85% of the sentence before parole consideration, I believe.
Flatsixer
Most often in a complex case with multiple indictment targets, the ones who are cooperating and singing the loudest to save their own skins are, in fact, the "unindicted co-conspirators".
It is a method by which the Gov can hold the sword over their head(s) in order to assure further testimony and cooperation. It is the reward for taking the snitch role.
Flatsixer
This will take a long time to play out. Don't worry, they'll get around to everyone. The Feds have had years to timeline this event/prosecution for maximum effect.
I do agree with someone who said it yesterday...There are many other well known IHub aliases who aren't sleeping well right now.
This is going to be fascinating as it unfolds...;^))
Yeah, I mean that...;^))
Flatsixer
Agree BNB52...hence my post 4389...em
Schadenfreude is a German word which is defined as...
Taking gleefull pleasure or delight in the misfortune and suffering of others
Flatsixer
OK, then just read the schadenfreude reply...em
?!?
"What I am waiting to read is MATT 'making' a statement he has 'stopped' using IHUB for his illegal activities."
What would you have him deny next as "proof" in context of an accusation? If he has stopped beating his dog, perhaps?
That statement would in fact imply an acceptance of guilt.
Flatsixer
Then don't read the board, Rover...Simple enough...em
No EJ656, IHub is owned by a UK entity...em
Yes shark, I can tellya...
18562 RRGI..."Removed By: Mod Squad Reason: Off-Topic"
The Mod Squad removed it because the indictment posts are being removed from the specific IHub stock boards. Go here...
http://investorshub.advfn.com/boards/board.aspx?board_id=15452
Flatsixer
verdiking...Could you please shoot me a quick email to...
Flatsixer2@yahoo.com
Thanks!
Good questions verdiking...For the answers...
Blast/BESV Investor relations rep...
John MacDonald
jmacdonald@blast-es.com
(281) 453-2888 Ext. 5 (Office)
(713) 725-9244 (Cell)
Or:
John O'Keefe, CEO
(281) 453-2888 Ext. 4
Tell us whatever answer they give you, please...
Flatsixer
NP appraiserguy...Help anytime if I can...em
appraiserguy...That is a VERY good thing to own stock in any company that isn't expanding the Outstanding Share count.
For the BESV common shareholders (Us), it shows that our investment in the company is not being diluted by additional issued shares.
Flatsixer
I should mention an important point that in the past 6 months plus, Blast/BESV has not changed the outstanding share count nor the authorized.
From the first Quarter 10Q filed 11May2009...
"The number of shares of the issuer’s common stock outstanding of each of the issuer’s classes of equity as of May 11, 2009 is 61,817,404..."
http://www.sec.gov/Archives/edgar/data/1141197/000114119709000007/form10-q.htm
Flatsixer
Good point dhwco!...em
That RET lawsuit has been thrown out, I believe.
All it was about was a demand that a former partner be allowed to audit RET's books. The exact request from the actual filing...
"DMS Partners, LP requests that the audit of the records of the Joint Operations begin by
Tuesday September 30, 2008."
I answered verdiking's post about this matter back in early March 09...
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=36093497
Flatsixer
Thx snowcloud...Here is the link to BESV Yahoo Finance...
http://finance.yahoo.com/news/Blast-Energy-Services-Deploys-prnews-15278904.html?.v=1
Flatsixer
Your concept of the Blast AFJ rig operation is askew...
The Blast AFJ technology has been improved steadily. Blast doesn't claim that they can steer the jet but they are currently developing a sensor to measure the distance, orientation, and inclination of the lateral tunnels created.
Additionaly, in the process the AFJ isn't "...going horizontally 90 feet in a large diameter open hole." Here is how it works...the jetting mechanism is turned 90 degrees inside of a 4 and 1/2 inch wellbore and jetting out into the formation perpendicular to the wellbore. Also, the lateral runs are NOT limited to 90 feet, the AFJ rig can go further. In any event, you can check with Reliance O&G who was the licensed operator on the bore. It was their decision as I hear it to stay within the Texas RRC regulations limiting the horizontal displacement to <100 feet.
I don't think you are going to have an opportunity to see the AFJ rig at an auction, lol.
Like I said, lets just see what happens over the next 2 weeks as the SHM is held and new initiatives are approved. BESV is overdue for PR or 8-K IMO.
Flatsixer
The Great Ethanol Scam
http://news.yahoo.com/s/bw/20090515/bs_bw/may2009bw20090514058678
Flatsixer
BAMA...Actually, the first coiled tube drilling was done in the mid 1980s...
"The first coiled tubing horiz drilling I know of was in 1995 in Canada. Schlumberger and others have done it offshore since 1999. In the last 10 yrs, there has been all kinds of tech advances in this field."
"...five or six years ago, the first Blast system was junk. All hype for nothing."
I think what you are talking about is/was the original Landers (sp?) setup that was a very basic prototype. He was a KY inventor I believe. Blast then got involved with Alberta's technology to enhance and upgrade the technology. Those were steps in development of the current AFJ rig which Blast owns in its entirety.
Over the past year Blast has applied for patent for this new AFJ rig...that is...Applied Fluid Jet. The current AFJ system is proprietary to Blast.
Flatsixer
BAMA...I can answer these quickly...
". Blast had a operating loss of something like $460K in the quarterley I read. So my question about burn is how do they survive the month of May?"
Blast has paid expenses on the rig, additional development, etc. The "burn rate" is the necessary $$$ to cover monthly expenses. Blast is fine for now and they have cash coming. I notice that you make no reference to the lawsuit awards which are structured so as to essentially provide a backstop cash flow.
Is the rig mothballed and the crew firedd?"
No, the crew is intact, the rig is operating. You mentioned Sclumberger in your message with respect...the rig boss for the AFJ rig is a former longtime employee of Schlumberger that Blast hired away from them.
And, BTW...The Blast technology hasn't even been tried in CBM operations because of poor economics so it isn't something your wells would be suitable for anyway, correct?
More later.
Flatsixer
BAMA...Let me respond to your points one by one. I'm extremely pressed for time with various meetings today so I'll have to post as the day goes on when I have a moment to spare...
You mention...
"1. Hart's E&P is good mag--I read most of the trade mags, Oil and Gas Journal being the best one.
That said, the article you mention is a pr puff piece written by Blast Energy invest relns."
You call the Blast article a "puff piece". Yes, it is true that John MacDonald, the IR of Blast wrote that but it was by invitation of E&P. Blast didn't pay for its insertion and it wasn't an "advertorial".
Tell me, who would Blast be trying to blow smoke at anyway? Nowhere in the article was the stock symbol mentioned or even that Blast was a publicly traded company so it wasn't aimed at potential investors.
And, it doesn't make sense to me that Blast would invite peer ridicule by having their technology explained in an industry leading trade journal if it wasn't viable. Why do that if the technology is so outdated and stale? There would be no advantage, but the article did generate responses to the company.
Flatsixer
BAMA_CBM...The Blast burn rate is around $80K per month.
There is a $1M payment due from Quicksilver coming in September at the latest in accordance with the terms of the lawsuit settlement. The penalty for nonpayment on that is draconian and automatically accelerates the remainders so I'm confident that Blast will get the full amount on time.
And, FWIW, I'm certain that there are multiple finance resources for the company that will maintain solvency.
JMOs,
Flatsixer
BAMA_CBM...What are your thoughts on this, plz?...
http://www.epmag.com/Magazine/2009/3/item31503.php
Flatsixer
It isn't a "prerequisite" to contribute DD. I never said that...it was just a request to you since I know that you are more involved with the stock than most.
"Trading" a stock instead of a "buy & hold" strategy has nothing to do with gambling. Everyone has a price point that they will execute a sell. A traded portfolio just attempts to maximize profit taking on a stock's volatility, that's all. Nothing sinister.
Enough of the personal stuff, lol. Feel free to express your opinion on the stock and company.
Flatsixer
LOL, gimme a break Jerry...
I think everyone here understands my post intents if you read them in full context and especially in chronological order.
It appears to me that you interpret VERY poorly and add insinuation that changes the gist of almost every message.
I said it many different ways in the past week for those who understand English...The only position that I've changed regarding my Blast shares is that I consider it more of a trading play than buy & hold. My opinions surrounding everything else is just that and doesn't mean that I've lost complete faith in the company, management, technologies, etc. If you yourself believe that then I'd think you'd sell ASAP, right?
And, FWIW, I've been replying to every single opinion and reaction to my posts and most others on this board for 2 and 1/2 years without dodging a single one. It has been suggested that I just ignore you but I try my best anyway.
I can certainly handle intelligent, relevant, and contextual give and take but it really gets tedious dealing with people who are just needy for support or want to vent frustrations.
Of course, that's just my opinion.
Could you please contribute just one scintilla of DD sometime in order to broaden the knowledge base on this stock? It would be greatly appreciated.
Thanks.
Flatsixer
Yes, Jerry, Dang! Where did you come up with the idea that I said (as you posted)...
"It appears you have given up on this company's ability to raise legitimate revenue..."
???
Here is exactly what I wrote in that post that you refer...
"The Annual Report shows little/no revenue after 10 months out of BK but the lawsuit settlements sure have provided great and steady paychecks, haven't they?"
Does that indicate anywhere that I'm suggesting that Blast has an inability to raise "legitimate revenue"? No...it contains a suggestion that I have the opinion that management is overpaid for what has been produced.
WTF are you suggesting with the phrase "legitimate revenue"? Huh?
Read further in the post you quote and you might be able to squeeze out this part that somehow apparently has eluded you as you suggest phraseology that I never wrote, lol!
"There must be an expectation of advantage/profit for the BOD/Mgmt to be so intently keen to press for a better way to accumulate more shares for themselves. No doubt that it will prove adverse to common shareholder interests but it will provide price stimulus for the stock.
I think they're sitting on news in Houston until the insiders can play it to their best advantage."
Can you read English? Lemme break the quote above down just for you. I'm suggesting that there are big things on the horizon that haven't been announced because the boyz are intent on changing the insider buying covenants more to their advantage.
Dang, Jerry...I even said straight up that they were prolly sitting on news!
You read into posts what you seem to want to argue about Jerry. I've seen you do this on another stock until people just get tired of answering you.
Waste of time IMO. Post some DD of your own...that would be helpful.
Flatsixer
Jerry...You draw the wildest conclusions from posts.
Where do you come up with this?:
"It appears you have given up on this company's ability to raise legitimate revenue, and that they are only living day to day on the cash settlements they received."
?!?
And, if you don't understand the weighty difference between an undeclared paid stock promoter and an average shareholder supporting a stock then I don't know what more to say.
Flatsixer