Blast Energy Services Estimates Rig Repair Cost and Timeline
May 04 2006 - 5:00PM
PR Newswire (US)
HOUSTON, May 4 /PRNewswire-FirstCall/ -- Blast Energy Services
(OTC:BESV) (BULLETIN BOARD: BESV) has evaluated the repairs needed
to return their new abrasive fluid jetting (AFJ) rig back into
service. During its initial field shakedown in April, the rig
demonstrated the need for urgent equipment repairs to certain key
components before the rig could reach full commercial deployment.
Based upon the evaluation jointly with an independent coil-tubing
repair yard, the Company is estimating repairs to cost less than
$100,000 over the next eight to ten weeks. During this time the
Company will be focusing their repair efforts primarily on the
injector head and hydraulic system control components of the rig.
Upon completion of these repairs, the rig will return to a test
well location to further shakedown the rig and test its lateral
drilling capabilities. "The objective of these repairs it to
convert our prototype design into a rig that can provide a reliable
and consistent service to our customers," said David M. Adams,
President & Co-CEO of Blast Energy Services, Inc. "While such
steps may seem time consuming, they are crucial for us to gain
customer acceptance for a brand new technology." While on its
initial well location in Louisiana, the Blast Rig #1 successfully
demonstrated the ability to cut through the steel well casing using
AFJ from within the well-bore -- a unique attribute in the energy
business. The Company was also successful in shaking down the major
technology systems of the rig, including the proprietary Formation
Access Tool and its abrasive cutting system. However, they
encountered several components on the basic coil tubing unit that
needed immediate repair and, as a result, the rig was forced to
return to the yard before attempting to test the rig's lateral
drilling capabilities. The rig is currently on location at Pro-Fab
Equipment, an experienced Fort Worth-based well service equipment
fabricator and repair yard with over 45 years of combined
experience in the business. 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 rig repairs or growth,
adequate liquidity to manage operations and debt obligations, the
introduction of new services, commercial acceptance and viability
of such 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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