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
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Date
of Report (Date of Earliest Event Reported):
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April 2,
2009
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TOT
Energy, Inc.
__________________________________________
(Exact
name of registrant as specified in its charter)
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Delaware
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000-51108
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20-01715816
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_____________________
(State
or other jurisdiction
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(Commission
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(I.R.S.
Employer
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of
incorporation)
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File
Number)
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Identification
No.)
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12100
NE 16th
Ave.
N.
Miami, FL 33161
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33161
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_________________________________
(Address
of principal executive offices)
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___________
(Zip
Code)
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Registrant’s
telephone number, including area code:
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(305)
891-2288
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19950
West Country Club Drive, 8th
floor
Aventura,
Florida 33160
______________________________________________
Former
name or former address, if changed since last report
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:
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item
8.01 Other Events.
On April
2, 2009, TOT-SIBBNS, Ltd., the majority-owned joint venture between TOT Energy,
Inc. (the “Company”) and Sibburnefteservis, Ltd., determined there would be no
further oil drilling operations under its existing contract for the current
drilling season. TOT-SIBBNS has furloughed most employees (approximately 114
field and professional positions) until further notice. It is uncertain when or
if drilling services under the existing contract will recommence. The contract
for drilling services was temporarily suspended in January 2009 due to the
inability of the customer to obtain necessary funding. TOT-SIBBNS’
equipment remains on-site and is expected to remain on-site through the
summer.
TOT-SIBBNS
has continued to incur costs during the fourth quarter ended March 31, 2009 to
secure its equipment on the job site and prepare for recommencement of drilling
operations in the event the customer obtained the necessary financing to
maintain the oil field license required to conduct operations. These costs were
$10,500 for the quarter ended March 31, 2009.
At March
31, 2009, TOT-SIBBNS had a receivable in the amount of $162,000 from the
customer for milestone billing and had $146,500 in Capitalized costs that have
exceeded billings. We account for the existing drilling services contract under
the completed contract method whereby project costs and related revenues are
accumulated and reflected in operations when an estimated loss is
probable. Given the uncertainties relating to our customer’s ability
to obtain financing in order to complete the drilling services contract, we have
recorded an estimated loss provision of $340,000 for the quarter ended March 31,
2009.
As
previously disclosed, the oil production business in Russia is seasonal and
cyclical and is currently experiencing a down cycle in large part due to the
recently lower prices relating to production of a barrel of crude oil. While we
are hopeful that drilling service demand will increase when the price of oil
increases and/or the Russian government adjusts drilling license regulations and
fee structures, we can provide no assurance that this will be the case. We may
not know whether our drilling operations will be able to recommence with our
existing customer or other customers until the end of 2009.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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TOT
Energy, Inc.
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April
7, 2009
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By:
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/s/
Jonathan New
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Name:
Jonathan New
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Title:
Chief Financial Officer
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