Blast Energy Services Estimates Rig Repair Cost and Timeline

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., [phone],

or [phone], or  



Web site:  http://www.blastenergyservices.com/ 

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