Blast Energy Services Completes Major Financial Restructuring
22 October 2008 - 2:54AM
PR Newswire (US)
HOUSTON, Oct. 21 /PRNewswire-FirstCall/ -- As a result of favorably
settling certain lawsuits with former customers, Blast Energy
Services (OTC:BESV) (BULLETIN BOARD: BESV) has eliminated $2.25
million of long-term debt and increased assets by more than $6
million. After the impact of all the transactions below are
considered, Blast is expected to have a pro-forma shareholders
equity balance in excess of $7 million and working capital greater
than $2 million as of September 30, 2008. This compares to negative
shareholders equity of approximately $2 million and a near zero
working capital balance as of June 30, 2008. "This action, coming
on the heels of our emergence from Chapter 11 in February 2008,
demonstrates our strong commitment to building value for our
shareholders," said John O'Keefe, President and CEO of Blast. "We
are now poised to enter a growth phase for the company and hope to
move towards an AMEX listing in the future." Blast has paid off its
$2.1 million Senior Lien with Laurus Master Fund and a $125,000
Note with McClain County, Oklahoma as a result of favorably
settling certain law suits with former customers. Additionally,
approximately $200,000 owed to Blast's board of directors for
deferred compensation was converted into stock. Blast has also
redeemed $1 million of its 8% Series 'A' Convertible Preferred
Stock leaving approximately 60 million Common shares issued and 6
million Preferred shares issued and outstanding. New Business
Opportunities Blast has been working with consultants to develop
promising new business opportunities, including application of
heavy oil upgrading and nitrogen rejection technologies. Both of
these oil and gas field technologies have the potential to convert
stranded resources into valuable oil and gas reserves at very
attractive cost/benefit ratios. Intelligent Petro Services Module
Blast plans to schedule further demonstrations for many other
potential energy customers and attend certain trade shows to
promote this new remote monitoring and control product. A slide
show of the product demonstration conducted in early September 2008
has been posted to our website
(http://www.blastenergyservices.com/). The next desired step is to
conduct a long-term test at a client's facility for 3-6 months to
determine how the product performs in the external elements.
Satellite Services During September and October 2008, Blast shipped
and installation has begun to replace a microwave network
supporting a SCADA pipeline monitoring system for a new major
pipeline customer. Blast has also shipped three new systems to an
existing customer. Based upon this business, Blast expects this
business unit to begin generating a positive gross margin before
the end of the year. Down-hole Solutions Blast's horizontal radial
jetting rig achieved a five fold and a twelve fold increase in
natural gas production at two wells drilled in Abilene, Texas.
Lateral extensions reached 50 feet in two directions in each well
bore. The rig is currently on stand-by at the Reliance Oil &
Gas staging yard in Luling, Texas, pending start up of jetting
operations in the Austin Chalk formation of South Texas. Blast
plans to move its rig to that area the week of October 27, 2008 for
a work program of up to twenty wells. Safe Harbor Statement This
press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
(the "Act"). In particular, when used in the preceding discussion,
the words "believes," "expects," "intends," "plans," "anticipates,"
or "may," and similar conditional expressions are intended to
identify forward-looking statements within the meaning of the Act,
and are subject to the safe harbor created by the Act. Any
statements made in this news release other than those of historical
fact, about an action, event or development, are forward-looking
statements. Forward-looking statements involve known and unknown
risks and uncertainties, which may cause the Company's actual
results in future periods to be materially different from any
future performance that may be suggested in this release. Such
factors may include risk factors including but not limited to: the
likelihood that the customer lawsuits result in meaningful
proceeds, the ability to raise necessary capital to fund growth,
adequate liquidity to manage operations and debt obligations, the
introduction of new services, commercial acceptance and viability
of new services, fluctuations in customer demand and commitments,
pricing and competition, reliance upon lenders, contractors and
vendors, the ability of Blast Energy Services' customers to pay for
our services, together with such other risk factors as may be
included in the Company's filings on its periodic filings on Form
10-K, 10-Q, and other current reports. Blast Energy Services, Inc.
takes no obligation to update or correct forward-looking
statements, and also takes no obligation to update or correct
information prepared by third parties that are not paid for by
Blast. DATASOURCE: Blast Energy Services, Inc. CONTACT: John
MacDonald of Blast Energy Services, Inc., +1-281-453-2888, or
+1-713-725-9244, Web site: http://www.blastenergyservices.com/
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