Blast Energy Services Increases Production Flow Rates in the Austin Chalk
February 12 2009 - 11:39AM
PR Newswire (US)
HOUSTON, Feb. 12 /PRNewswire-FirstCall/ -- Blast Energy Services,
Inc. (OTC:BESV) (BULLETIN BOARD: BESV) reported positive production
results from two wells in the Austin Chalk formation, where it
recently applied its lateral fluid jetting services. The two
Reliance Oil and Gas wells are each producing approximately 33
barrels of oil per day and the production rate continues to
increase. Based on the performance to date, Reliance expects that
over the next few weeks the daily production rate could more than
double the typical rates from newly drilled wells in this area of
South Texas. "These results provide concrete proof that Blast's
lateral jetting service will provide dramatically higher initial
flow rates relative to conventional well completions. This success,
along with hiring a new Manager of Rig Operations, represents
another important step toward the full commercialization of our
horizontal completion technology," said John O'Keefe, President and
CEO of Blast. At a depth of approximately 2,700 feet, the Blast Rig
#1 had jetted a total of 20 laterals up to ninety feet in length at
three separate depths in two newly drilled wells. The laterals were
cut at a rate of approximately 1.5 feet per minute using water,
acid and certain other additives under a pressure of approximately
3,000 psi. Having achieved higher initial flow rates, Reliance
expects to proceed with a new seven-well project and receive
funding for an additional 18 wells in the area under the planned
drilling program. Once the wells are drilled, Blast will again
provide its applied fluid jetting services. Furthermore, Blast
believes that such results could dramatically improve the economic
performance of vertical wells in the Austin Chalk or other
limestone formations and allow operators to grow production in an
area that was previously believed to be marginally economic due to
low flow rates. In addition to validating the application of this
technology in the Austin Chalk, Blast is actively marketing its
service to other operators for the Chalk and other horizons. For
example, Blast recently signed up to a 100-well program to jet a
similar shallow limestone formation in Kentucky on behalf of
Resource Extraction Technologies, Inc. on a revenue sharing basis.
In related news, Blast has also recently hired Larry (Al) Solansky
to serve as their Manager of Rig Operations. Mr. Solansky has many
years of experience in machining and coiled tubing rig operations,
including as a Supervisor overseeing coiled tubing operations in
California and Oklahoma for Schlumberger for the last eight years.
He is hiring a crew and will manage the rig operations with
Reliance, RET, and all new customers as Blast moves toward full
commercial deployment of its applied fluid jetting operations.
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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