Blast Energy Services Resolves Claims Arising From SEC Investigation
July 26 2006 - 8:25AM
PR Newswire (US)
HOUSTON, July 26 /PRNewswire-FirstCall/ -- Blast Energy Services
(OTC:BESV) (BULLETIN BOARD: BESV) reported today that the
Securities and Exchange Commission (SEC), as part of an agreed
resolution of claims against the Company, has filed a civil
complaint, consents, and proposed judgments against the company and
two individuals in the US District Court for the Southern District
of Texas. The complaint and proposed judgments resolve the SEC's
formal investigation relating to the Company's reporting practices
and public statements made in 2003. Without admitting or denying
the allegations in the complaint, Blast agreed to a proposed final
judgment that includes a permanent injunction against the Company
from violating Section 10(b) of the Exchange Act of 1934 and Rule
10b-5 thereunder. The proposed final judgment does not assess any
civil penalties against the Company. This settlement is subject to
the approval of the court. Since December 2003, the Company has
taken several steps to address issues related to the SEC's
inquiries, including the termination and replacement of the
previous CEO and COO. Two directors have resigned from our board
and we have appointed a new CFO. The Company strengthened internal
controls overall, particularly with respect to the public release
of information and the recognition of revenue. The Company also
conducted an internal investigation of the matters of concern to
the SEC. As a result, the Company restated its second and third
quarter financial statements from fiscal year 2003 to reverse all
revenue related to the aforementioned period. About Blast Energy
Services, Inc. Blast Energy Services, Inc. is a publicly traded
company based in Houston. Our mission is to substantially improve
the economics of existing oil and gas operations through the
application of our worldwide licensed and proprietary technologies.
Using specially fabricated mobile drilling rigs, we intend to
operate a commercially viable energy service business, including:
specialty casing cutting, perforation, fracturing services, and
lateral drilling with the potential to penetrate through well
casing and into reservoir formations to stimulate oil and gas
production. This service should provide oil and gas producers with
an attractive, lower cost alternative to existing well stimulation
or horizontal drilling services. Additionally, we provide satellite
communication services to oil and gas producers. This service
allows them to monitor and control well head, pipeline or drilling
operations through low-cost broadband data and voice services from
remote operations where conventional land based communication
networks do not exist or are too costly to install. Please visit
our website: http://www.blastenergyservices.com/ . DATASOURCE:
Blast Energy Services, Inc. CONTACT: John MacDonald of Blast Energy
Services, Inc., +1-281-453-2888, or +1-713-725-9244, or Web site:
http://www.blastenergyservices.com/
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