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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