form8-k.htm
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
333-64122
(Commission
file number)
Blast
Energy Services, Inc.
(Exact
name of registrant as specified in its charter)
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Texas
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22-3755993
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(State
or other jurisdiction of
incorporation
or organization)
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(IRS
Employer
Identification
No.)
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14550
Torrey Chase Blvd, Suite 330
Houston, Texas
77014
(Address
of principal executive offices)
(281)
453-2888
(Issuer’s
telephone number)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
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[
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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[
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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ITEM 5.02.
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DEPARTURE
OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF
CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN
OFFICERS.
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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 California-based, 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.
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.
ITEM
9.01 FINANCIAL STATEMENTS AND EXHIBITS.
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Exhibit No.
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Description
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10.1
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Compromise
Settlement and Release Agreement
Filed
as an exhibit to the Company’s Form 8-K, filed with the SEC on September
22, 2008, and incorporated herein by reference.
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99.1*
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Blast
Provides Operational Update
Press
Release issued June 3,
2009
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* Filed
herewith.
SIGNATURES
Pursuant
to the requirement of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
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Blast Energy Services,
Inc.
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By:
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/s/
Michael Peterson
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Michael
Peterson
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Interim
President and CEO
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Date:
June 16, 2009
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