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EXHIBIT 10.1

 
UNITED STATES BANKRUPTCY COURT
 
FOR THE SOUTHERN DISTRICT OF TEXAS
 
HOUSTON DIVISION
 

 
In re:
§
   
§
 
BLAST ENERGY SERVICES, INC.
§
Case No.    07-30424-H4-11
 
§
 
EAGLE DOMESTIC DRILLING
§
Case No.    07-30426-H4-11
OPERATIONS LLC
§
 
Debtors
§
Jointly Administered Chapter 11
 
§
under Case No. 07-30424-H4-11

SECOND AMENDED JOINT PLAN OF REORGANIZATION OF
BLAST ENERGY SERVICES, INC., DEBTOR AND
EAGLE DOMESTIC DRILLING OPERATIONS LLC, DEBTOR

 
Dated: December 3, 2007
 

 
 

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DEBTORS’ SECOND AMENDED JOINT PLAN OF REORGANIZATION
 
This Second Amended Joint Plan of Reorganization is proposed by Blast Energy
Services, Inc., Debtor (“Blast”) and Eagle Domestic Drilling Operations LLC,
Debtor (“Eagle”) for reorganization of their financial affairs pursuant to
chapter 11 of the Bankruptcy Code.  This Second Amended Joint Plan is being
filed as required by and pursuant to the terms of the Agreed Order Granting
Continuance of Confirmation Hearing entered by the Bankruptcy Court on November
28, 2007 (docket number 759). EXCEPT AS EXPRESSLY SET FORTH BELOW, THIS SECOND
AMENDED JOINT PLAN OF REORGANIZATION DOES NOT REPLACE OR MODIFY THE TERMS OF THE
FIRST AMENDED JOINT PLAN OF REORGANIZATION FILED SEPTEMBER 11, 2007, AND THE
TECHNICAL AMENDMENTS TO THE FIRST AMENDED JOINT PLAN OF REORGANIZATION FILED
OCTOBER 5, 2007, AND WHICH HAVE BEEN PREVIOUSLY SUBMITTED TO, AND ACCEPTED BY,
THE EAGLE AND BLAST CREDITORS.
 
All capitalized terms not otherwise defined by this Second Amended Joint Plan of
Reorganization shall have the meanings ascribed to them in the First Amended
Joint Plan of Reorganization. To fully understand the Plan this Second Amended
Joint Plan of Reorganization must be read and considered in conjunction with the
First Amended Joint Plan of Reorganization and the Technical Amendments to the
First Amended Joint Plan of Reorganization.
 

 
 

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1.  
The following Definitions in Article I are deleted in their entirety:

 
 Collateral Agreements
 
1.25 Convenience Claim
 
2.  
The definition of Plan Documents at 1.60 is modified by deleting the words “the
Eagle Junior Secured Notes, the Blast Junior Secured Notes, the Collateral
Agreements”.

 
3.  
Paragraphs 3.1 (iii) and (iv) are deleted.

 
4.  
Paragraph 3.1 (v) is modified by deleting “$234,000” and replacing that number
with “$308,000”.

 
5.  
Paragraph 3.1(vi) is modified by deleting “$917,000” and replacing that number
with “$950,000”.

 
6.  
Paragraphs 3.3(v) and (vi) are deleted.

 
7.  
Paragraphs 4.2(v) and (vi) are deleted.

 
8.  
Paragraph 4.2(vii) is deleted in its entirety and is replaced with the
following:

 
“(vii) Class 7—Eagle Unsecured Claims.    Except to the extent that a holder of
an Allowed Class 7 Unsecured Claim has agreed to receive other lesser treatment,
such holder shall receive in the Distribution Date in full and final
satisfaction of its Claim Cash equal to 100% of such holder’s Allowed Unsecured
Claim.
 
 
 

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This Class is impaired”
 
9.  
 Paragraph 4.2(viii) is deleted in its entirety and is replaced with the
following:

 
“(viii) Class 8—Blast Unsecured
Claims.                                                                                     Except
to the extent that a holder of an Allowed Class 8 Unsecured Claim has agreed to
receive other lesser treatment, such holder shall receive in the Distribution
Date in full and final satisfaction of its Claim Cash equal to 100% of such
holder’s Allowed Unsecured Claim.
 
This Class is impaired”
 
10.  
Paragraphs 7.1 (iii) and (iv) are deleted.

 
11.  
Paragraph 7.1 (v) is modified by deleting “$234,000” and replacing that number
with “$308,000”.

 
12.  
Paragraph 7.1(vi) is modified by deleting “$917,000” and replacing that number
with “$950,000”.

 
13.  
Paragraph 8.1(i) is amended by deleting “$3,000,000” and replacing that number
with “$4,000,000”.

 
14.  
Paragraph 8.1(xv) is amended by deleting “$3,000,000” and replacing that number
with “$4,000,000”.

 
 
 

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15.  
Paragraphs 8.4 and 8.5 are deleted in their entirety.

 
16.  
Paragraph 9.5 is modified by deleting the words “the Eagle Junior Secured Notes,
the Blast Junior Secured Notes, the Collateral Agreements”.

 
17.  
Paragraph 9.6 is modified by deleting the language of that paragraph and
replacing it with the following: “The initial directors of Reorganized Blast
shall be the following Persons: John R. Block, Scott W. Johnson, Roger P. (Pat)
Herbert, Joseph J. Penbera Ph. D. and Jeffrey R. Pendergraft.”

 
18.  
Paragraph 10.4(i) is modified by adding the phrase “and gross negligence” after
the phrase “other than for willful misconduct”.

 
19.  
Paragraph 10.5 is modified by adding the phrase “and gross negligence” after the
phrase “other than for willful misconduct”.

 
20.  
Paragraph 14.7 is modified by deleting the contact information for H. Rey
Stroube, III and substituting the following: “18510 Kingsland Boulevard,
Houston, Texas 77094, Facsimile: (281) 599-3011, Email: rstroube@comcast.net.”

 
21.  
Annex 1 and Annex 2 are deleted in their entirety.

 

 
 

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Signatures
 
This Plan may be executed in any number of counterparts, each of which shall be
deemed to be an original and all of which shall be deemed one and the same
instrument.
 
Blast Energy Services, Inc
 

 
By:           ______________________________

 
Eagle Domestic Drilling Operations LLC
 

 
By:           ______________________________

By:                                                                
H. Rey Stroube, III
State Bar No. 19422000
18510 Kingsland Blvd.
Houston, Texas  77094
Telephone:  (281) 599-3011
rstroube@comcast.net (e-mail)

ATTORNEY FOR BLAST ENERGY SERVICES, INC.
EAGLE DOMESTIC DRILLING OPERATIONS LLC DEBTORS.