Blast Energy Services Signs Cooperative Research and Development Agreement With Department of Energy
October 16 2006 - 1:24PM
PR Newswire (US)
HOUSTON, Oct. 16 /PRNewswire-FirstCall/ -- Blast Energy Services
(OTC:BESV) (BULLETIN BOARD: BESV) has signed a Cooperative Research
and Development Agreement ("CRADA") with the US Department of
Energy to test and evaluate Blast's abrasive fluid jetting
capabilities at the Department of Energy's Rocky Mountain Oilfield
Testing Center in Wyoming. The CRADA provides for an up to five
well test program to evaluate Blast's abrasive fluid jetting
technology. This proprietary technology has been designed to cut
holes, slots and windows in existing well casing and drill
horizontal bore holes out from the existing wellbore. "We are very
pleased that the Department of Energy has agreed to assist us by
providing their facilities and personnel to facilitate a
comprehensive test plan of our abrasive fluid jetting equipment,"
said David Adams, President and co-CEO of Blast Energy Services,
Inc. "We believe this step-by-step test plan, together with the
ability to view the results through down-hole cameras, will greatly
assist us in understanding the full capabilities of our
technology." The statement of work anticipates the following will
be demonstrated: 1. Milling of holes in a circular pattern to
simulate perforations. 2. Milling of a continuous slot around
casing (360 degrees) and through the cement into the formation. 3.
Cut vertical slots in casing over the four foot travel of the unit.
4. Drill 20 to 50 foot lateral either through casing or through a
previously cut window. Blast expects testing will commence in
October with an initial test well in the 400 to 1,000 foot depth
range before moving to additional wells in the 3,000 to 5,000 foot
depth range. The Rocky Mountain Oilfield Testing Facility is
provided by the Department of Energy as a field test site for
emerging and developing technologies to address critical energy
industry issues. The field test site is a 10,000 acre operating oil
field offering a full complement of associated facilities and
equipment on-site. There are approximately 1,200 well bores and
approximately 600 producing wells, in nine producing reservoirs
ranging in depth from 500 to 5000 feet. About Blast Energy
Services, Inc. Blast Energy Services, Inc. is a publicly traded
company based in Houston. Our mission is to provide quality
services to the energy industry, including contract land drilling,
specialty completion applications and satellite services to remote
locations. After the recent acquisition of Eagle Domestic Drilling
Operations, Blast's primary business is as a drilling contractor
with three land rigs available for use and three more expected to
be deployed in October, November and early 2007, respectively.
Also, the Company is developing a proprietary abrasive fluid
jetting (AFJ) rig with the capability of performing down-hole
services that cut through the well casing, penetrate into reservoir
formations, and increase the amount of drainage area open to
production. This service is expected to provide oil and gas
producers with an attractive, lower cost alternative to existing
conventional well stimulation or horizontal drilling services.
Blast's third business segment is providing satellite services,
including broadband internet and voice communications, to oil and
gas companies throughout the world. This service allows these
energy companies to monitor and control well head, pipeline or
drilling operations in 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 integrate and successfully operate the newly acquired
company, 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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