BOISE, Idaho, April 30, 2013 /PRNewswire/-- Blaze Energy (Pink Sheets: "BLZE") today announced it has completed its first phase of reorganization since the sale of its working interest in the Fayetteville Shale Field to Petrohawk Energy Corporation.
In June of 2007 the Company acquired EESV Fayetteville, Inc. from Environmental Energy Services, Inc. ("EESV") in exchange for 70,000,000 shares of Blaze Energy common stock. EESV owned a working interest in approximately 10,900 net acres in the Fayetteville Shale Field in the Arkoma Basin, Arkansas. By virtue of the transaction, Blaze Energy became the majority-owned subsidiary of EESV.
During an aggressive two years of natural gas production in the Field, Blaze Energy sold its working interest to a subsidiary of Petrohawk for gross proceeds of $18,977,679. Petrohawk subsequently was acquired by BHP Billitton, Ltd. At the time of sale of the Company's remaining interest, EESV was indebted to Blaze Energy in excess of $2,500,000, and owned 69,724,378 shares of common stock, or approximately 76% of the Company.
Effective today, Blaze Energy is pleased to announce it has settled with its majority shareholder, EESV, and exchanged EESV Fayetteville, Inc. and the associated notes outstanding, for and in consideration of EESV's 76% stake in the Company, a transaction valued at approximately $.035 per share. Additionally, as part of the reorganization, Blaze Energy entered into the following agreements: 1) all remaining officers, directors, employees, and consultants of the Company, except for one A. Leon Blaser, have resigned and released the Company; 2) EESV agreed to assume liabilities of the Company, in amounts totaling $30,730.71; 3) a release of a pledge by EESV of 15,000,000 shares of the Company's common stock; and 4) the cancellation of the Company's previous lease for its corporate offices.
A. Leon Blaser, the Company's sole officer and director, commented: "The sharp decline in natural gas prices subsequent to our sale to Petrohawk, albeit unfortunate, has proven to be well calculated. Our foresight is self evident. Tasked with moving the Company forward, with our majority shareholder as debtor, was difficult to say the least. Separating from EESV, while recapturing seventy million shares of our common stock, is a new milestone for the Company. Armed with this autonomy and a clean balance sheet, the Company is poised to regain lost shareholder value. Additional announcements on our reorganization, expanded business model, and upcoming acquisitions will follow over the next few weeks. On behalf of the Company, I'd like to thank the shareholders for their patience and continual support."
