Blast Energy Services Deploys AFJ Rig to Multi-Well Program in Kentucky
May 18 2009 - 11:03AM
PR Newswire (US)
HOUSTON, May 18 /PRNewswire-FirstCall/ -- Blast Energy Services,
Inc. (OTC Bulletin Board: BESV) announced today that they have
deployed their proprietary applied fluid jetting ("AFJ") rig to
Kentucky to begin working under a previously announced 100-well
program with Resource Energy Technologies, LLC ("RET"). Under the
terms of the RET agreement, Blast will earn a 40% share of the
revenues generated from any increase in natural gas produced from
the use of the AFJ rig on the field. Additionally, Platinum
Minerals, Inc. ("Platinum") has expressed a strong interest in
using Blast's AFJ service for a 20 to 30 well program in Eastern
Kentucky on a cash-for-services basis. "The limestone formations in
Kentucky are similar to the Austin Chalk in Texas, where our
process had proved to be successful at improving oil and gas
production. We expect to be very active in Kentucky over the next
several months fulfilling our commitments under the RET agreement
and by pursuing cash-for-service contracts with Platinum and other
local operators," said John O'Keefe, President and CEO of Blast.
The producing field operated by RET contains wells as deep as 1,200
feet with two separate producing zones, the Fort Payne and the
Coniferous. Each zone has 20 to 40 feet of net pay which should
allow Blast to jet laterally up to 90 feet in multiple directions
at several intervals in each zone. Similarly, the wells operated by
Platinum have multiple limestone pay zones in wells as deep as
2,400 feet. Representatives from Platinum are planning to visit the
RET well locations in the coming week, and following a successful
demonstration of the jetting process, we expect to contract with
Platinum for services on fields they operate in Eastern Kentucky.
Since successfully jetting several separate horizontal penetrations
in wells operated by Reliance Oil and Gas in the Austin Chalk play
in Texas, Blast has hired and trained a three-man rig crew on the
AFJ operations and conducted further equipment upgrades to the rig
to improve its operational effectiveness and consistency. During
May 2009, Blast attempted some laterals in the Brown Dolomite
formation in the Texas Panhandle, which were not successful.
However, we plan to return to the area once the jetting procedure
has been adapted for the down-hole environment encountered there.
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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