Overview
For the past several years,
Blast has been focusing on developing new technologies
to help the economics for oil and gas operators,
such as: providing fast and reliable satellite
communications to remote rigs or field operations;
and, developing down-hole applications, which
we called applied fluid jetting or AFJ, to improve
oil and gas recoveries from mature oil and gas
properties. However, we have recently decided
to head in a new direction so as to grow a base
business capable of supporting our development
aspirations.
Oil
and Gas Properties
Our near-term objective is to use the proceeds from the remaining lawsuit settlement
payments from Quicksilver (as described in greater detail under "Services" and "O&G
Properites", to acquire oil producing properties with cash flow we hope
will sustain liquidity requirements. As a first step, we have recently purchased
a majority interest in the North Sugar Valley Field in Matagorda County, Texas.
With such properties we will strive to improve value by looking for opportunities
to increase production and to lower operating costs.
Over the longer term, we plan to look to invest
in additional producing properties and in some
cases properties that are suited for AFJ applications
to improve their production and value.
Blast funded the initial
cash portion of the North Sugar Valley Field
acquisition from a portion of the $1.4 million
in funds, net of attorney’s fees, recently
received from Quicksilver Resources in connection
with the Compromise Settlement and Release
Agreement entered into with Quicksilver in
September 2008. The monthly payments toward
the promissory note provided in connection
with the purchase of the North Sugar Valley
Field (as described in greater detail under “Services” and, “O&G
Properties”), are expected to be paid
from a portion of the net operating cash flow
generated by the acquired properties. The balloon
payment on the promissory note is expected
to be paid from a portion of the fourth and
final Quicksilver settlement payment of a net
$1.4 million due in September 2011.
|
