Blast Energy Services Achieves Proof of Concept With Abrasive Cutting Technology
March 20 2006 - 10:20AM
PR Newswire (US)
HOUSTON, March 20 /PRNewswire-FirstCall/ -- Blast Energy Services
(OTC:BESV) (BULLETIN BOARD: BESV) has validated its new abrasive
fluid jetting (AFJ) technology during a series of cutting practice
runs conducted last week. Management believes that these tests
visually demonstrated the effectiveness and efficiency of the AFJ
technology by cutting through steel in a matter of seconds using
the entire rig system, including the down-hole deflection shoe.
Impressive video of these tests can be viewed on the Company's
website: http://www.blastenergyservices.com/ . "These positive
results clearly confirm the high potential of our jetting
technology for all kinds of well and reservoir cutting situations,"
said David M. Adams, President & Co-CEO of Blast Energy
Services, Inc. "We will now proceed to our first commercial
down-hole deployment of this rig on behalf of Oracle Energy
Company, where we plan to use the technology to stimulate
production on a recently drilled well." The factory acceptance test
for the entire rig was conducted over several weeks and culminated
with several surface cutting practice runs last week. These testing
activities included debugging the rig's automated systems and
controls, running the abrasive slurry mixing system and checking
the operation of the coiled tubing reel, injector head and the
proprietary Formation Access Tool (FAT). The surface cutting
practice runs were designed to validate Blast's new AFJ technology
by operating under field-like conditions and included running the
abrasive cutting fluid under high pressure from the mixing tank
through 8,700 feet of coiled tubing; through the well head
assembly, comprised of the injector head, FAT, and blow out
preventors; and finally through the down-hole deflection shoe where
the casing and steel plate were cut through. The upcoming
deployment will commence once Oracle Energy has prepared their well
for work over services. The rig is undergoing mechanical repair to
a main pump bearing prior to being deployed to its initial
commercial operation. It will take approximately a week or so for
Blast to rig down and mobilize Blast Rig #1 to the Oracle well
location in Many, Louisiana. The AFJ rig technology is built upon a
conventional coiled tubing unit and has a surface working pressure
of 20,000 pounds per square inch. It employs a specialized mixing
tank and proprietary delivery system to reach working depths of
8,000 feet. This specialized rig cost approximately $1.2 million
and took nine months to engineer and construct. Blast Energy and
Alberta Energy Partners jointly own the AFJ technology, which has
many potential applications within and outside the energy industry.
Upon successful deployment and customer acceptance of the services
provided by Blast Rig #1, the Company may order construction to
commence on as many as three additional rigs. Based upon an average
five-day working week, the Company estimates that each rig should
generate gross revenues of $6 million per year. With this new
technology, Blast is now capable of offering a product line that
includes casing milling, large bore and medium reach perforations,
lateral jetting, and specialty well completion services such as the
use of propants and acid treatments. In related news, Alberta
Energy Partners and Blast have agreed to waive the revenue sharing
provisions of the Technology Purchase Agreement and Alberta has
assigned the full 50% ownership in the AFJ technology to Blast
effective immediately in consideration for certain minor contract
amendments. Blast had previously been awarded only 20% of the
ownership. 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 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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