Blast Energy Services Raises Funds in Private Placement
December 20 2005 - 8:59AM
PR Newswire (US)
HOUSTON, Dec. 20 /PRNewswire-FirstCall/ -- Blast Energy Services,
Inc. (OTC:BESV) (BULLETIN BOARD: BESV) has raised additional funds
for operational activities and working capital needs as their
proprietary abrasive fluid jetting rig nears completion and
deployment. The Company has received funding of $540,000 in an
equity private placement. The transaction involved the sale of
900,000 restricted common shares with registration rights at $0.60
per share to an accredited institutional investor. "We continue on
track to deploy our new abrasive jetting rig," said John O'Keefe
Executive Vice President and Co-CEO. "This additional working
capital facilitates the rig deployment, allows us to expand
marketing support for the satellite division and covers the
resolution of certain legacy financial obligations." The Blast Rig
#1 nears final completion. The coiled tubing reel assembly is at
the supplier's facility receiving 8,500 feet of one inch coiled
tubing. Our proprietary formation access tool (FAT) continues to
receive programming so that it will become fully functional on the
various well bore sizes used in the oil industry. The FAT is one of
the unique components of the rig's abrasive jetting system and is
critical to its success. The coiled tubing reel and FAT represent
the last two remaining major components to complete Blast Rig #1.
Once they are returned to the fabrication yard, our efforts will
focus on final integration and programming of the rig's operating
controls and safety systems. Once the rig is fully functional, we
expect to conduct our factory specifications and field testing in
early 2006. 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 are providing satellite 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/ . Safe Harbor Statement Any
statements made in this news release other than those of historical
fact, about an action, event or development, are forward looking
statements. Forward looking statements involve known and unknown
risks and uncertainties, which may cause the Company's actual
results in future periods to be materially different from any
future performance that may be suggested in this release. Such
factors may include risk factors including but not limited to: the
ability to raise necessary capital to fund growth, adequate
liquidity to manage operations and debt obligations, the
introduction of new services, commercial acceptance and viability
of new services, fluctuations in customer demand and commitments,
pricing and competition, reliance upon lenders, contractors and
vendors, the ability of Blast Energy Services' customers to pay for
our services, together with such other risk factors as may be
included in the Company's filings on Form SB-2 and its periodic
filings on Form 10-KSB, 10-QSB, and other current reports.
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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