Blast Energy Services Successfully Drills Horizontally on Initial Well
October 02 2008 - 4:09PM
PR Newswire (US)
HOUSTON, Oct. 2 /PRNewswire-FirstCall/ -- Blast Energy Services,
Inc. (OTC:BESV) (BULLETIN BOARD: BESV) announced today that its
radial jetting rig successfully completed the drilling of two
separate fifty-foot horizontal penetrations in a well operated by
Reliance Oil and Gas, outside of Abilene, Texas. At a depth of
approximately 300 feet, the rig drilled each horizontal lateral in
opposite directions (180 degrees) into the targeted producing sand.
As a result, the initial natural gas production of the well
increased five-fold to approximately 65 thousand cubic feet per day
(mcf/d). The radial jetting rig, Blast Rig #1, is currently
conducting similar operations on the second well in the drilling
program. "All of the equipment performed to perfection and we are
now attempting to stimulate the second well. This represents an
important validation for the development of our horizontal
completion technology," said John O'Keefe, President and CEO of
Blast. Under the terms of the revenue sharing agreement, Reliance
will operate the lateral jetting rig at no cost to Blast and will
share 50% of the revenues generated from such rig. The rig has been
contracted at a gross rate of $20,000 per well for what was planned
to be a five-well Abilene program. In addition to validating the
technology, the jetting process also took considerably less time
than expected by completing each lateral section in less than one
hour. Meanwhile, operations have already commenced in South Texas
on wells Reliance is operating in the Austin Chalk formation. Blast
plans to move its rig to that area for a twenty-well program after
it has completed its work in Abilene, Texas. With the success in
stimulating production, the revenue per well rate is projected to
double for the Austin Chalk drilling program. Website address
http://www.blastenergyservices.com/ Safe Harbor Statement This
press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
(the "Act"). In particular, when used in the preceding discussion,
the words "believes," "expects," "intends," "plans," "anticipates,"
or "may," and similar conditional expressions are intended to
identify forward-looking statements within the meaning of the Act,
and are subject to the safe harbor created by the Act. 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
likelihood that the customer lawsuits result in meaningful
proceeds, 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 its periodic filings on Form
10-K, 10-Q, and other current reports. Blast Energy Services, Inc.
takes no obligation to update or correct forward-looking
statements, and also takes no obligation to update or correct
information prepared by third parties that are not paid for by
Blast. DATASOURCE: Blast Energy Services, Inc. CONTACT: John
MacDonald of Blast Energy Services, Inc., +1-281-453-2888 or
+1-713-725-9244, Web site: http://www.blastenergyservices.com/
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