HOUSTON, Sept. 4 /PRNewswire-FirstCall/ -- Blast Energy Services, Inc. (BULLETIN BOARD: BESV) has successfully demonstrated its new remote sensing product that it believes will dramatically improve the energy industry's ability to remotely monitor and control their worldwide assets on a real-time basis. Blast has demonstrated the Intelligent Petro-Services Module ("IPSM") to several potential customers, including representatives from energy services companies and systems integrators, resulting in requests for further demonstrations to decision makers and introductions to a number of prospective high visibility customers.
"This demonstration highlighted the unique capabilities of the IPSM to integrate incompatible sensor networks currently used in the industry, connect them to the IP network and function as a remote application server to maintain operations when all other communications are severed. We are excited by the market potential and favorable responses received from some of the leaders in this field," said John O'Keefe, President and CEO of Blast.
With the convergence of several new technological breakthroughs, Blast can now provide an integrated and intelligent solution whereby operators can remotely monitor and control their wells, pipelines, or other assets on a real-time basis over any standard IP network. Blast has achieved this solution in part by enhancing the capabilities of a broad range of Cisco routers. Blast has integrated cost-effective remote computing, new communication routers with proprietary software, the conversion of multiple industry sensor protocols into one network standard, radio wave over internet IP capability and policy rule engines. All of this will allow customers to take immediate action to remedy the remote event based on thresholds they have specified.
Advantages of the IPSM include:
-- Providing the operator with an automated real-time remote response to multiple events occurring in the field, including the ability to immediately notify operations staff anywhere over the IP network.
-- Flexibility -- the module can be cost-effectively installed on small field operations with just a few sensors or scaled up to handle large operations managing hundreds of different sensor types.
-- Providing the operator with an improved interface between existing remote sensor networks and back-end applications through the IP network. These capabilities can seamlessly upgrade a producer's existing network infrastructure by converting multiple industry sensor protocols into one network standard.
Blast plans to schedule further demonstrations for potential energy customers and attend select trade shows to promote this new product. A slide show of the demonstration conducted last week has been posted to our website.
Satellite Services
Meanwhile, Blast has begun to re-grow its conventional Satellite Communications business. During August 2008, Blast received an initial purchase order for 12 satellite systems from a large pipeline company which is expected to grow to a total deployment of 35 new systems. This total order represents a large increase in Blast's installed base. Based upon the new business and repeat business from customers, such as BP, Blast believes this business unit should begin to generate a positive gross margin before year end.
Down-hole Solutions
Blast's radial jetting rig is on stand-by at the location of the five-well drilling program being operated by Reliance Oil and Gas outside of Abilene, Texas. Heavy rains have flooded the well sites, which delayed drilling operations for several weeks. Reliance plans to deploy the Blast Rig #1 to laterally complete the first well next week and expects to horizontally jet all five wells in the program before the end of September 2008. Meanwhile, operations have already commenced in South Texas on wells Reliance is operating in the Austin Chalk formation. Blast plans to move its rig to that area for a twenty-well program after it has completed its work in Abilene.
Under the terms of the revenue sharing agreement, Reliance will operate the lateral jetting rig at no cost to Blast and will share 50% of the revenues. The rig has been contracted at a gross rate of $20,000 per well for the current five-well Abilene program, but with success in stimulating production, the rate is expected to double for the Austin Chalk.
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.
