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Blast Energy Services Increases Production Flow Rates in the Austin Chalk

February 12, 2009

HOUSTON, Feb. 12 /PRNewswire-FirstCall/ — Blast Energy Services, Inc. (OTC 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.

SOURCE Blast Energy Services, Inc.


Source: newswire