HOUSTON, Oct. 16 /PRNewswire-FirstCall/ -- Blast Energy Services (OTC:BESV) (BULLETIN BOARD: BESV) has signed a Cooperative Research and Development Agreement ("CRADA") with the US Department of Energy to test and evaluate Blast's abrasive fluid jetting capabilities at the Department of Energy's Rocky Mountain Oilfield Testing Center in Wyoming. The CRADA provides for an up to five well test program to evaluate Blast's abrasive fluid jetting technology. This proprietary technology has been designed to cut holes, slots and windows in existing well casing and drill horizontal bore holes out from the existing wellbore. "We are very pleased that the Department of Energy has agreed to assist us by providing their facilities and personnel to facilitate a comprehensive test plan of our abrasive fluid jetting equipment," said David Adams, President and co-CEO of Blast Energy Services, Inc. "We believe this step-by-step test plan, together with the ability to view the results through down-hole cameras, will greatly assist us in understanding the full capabilities of our technology." The statement of work anticipates the following will be demonstrated: 1. Milling of holes in a circular pattern to simulate perforations. 2. Milling of a continuous slot around casing (360 degrees) and through the cement into the formation. 3. Cut vertical slots in casing over the four foot travel of the unit. 4. Drill 20 to 50 foot lateral either through casing or through a previously cut window. Blast expects testing will commence in October with an initial test well in the 400 to 1,000 foot depth range before moving to additional wells in the 3,000 to 5,000 foot depth range. The Rocky Mountain Oilfield Testing Facility is provided by the Department of Energy as a field test site for emerging and developing technologies to address critical energy industry issues. The field test site is a 10,000 acre operating oil field offering a full complement of associated facilities and equipment on-site. There are approximately 1,200 well bores and approximately 600 producing wells, in nine producing reservoirs ranging in depth from 500 to 5000 feet. About Blast Energy Services, Inc. Blast Energy Services, Inc. is a publicly traded company based in Houston. Our mission is to provide quality services to the energy industry, including contract land drilling, specialty completion applications and satellite services to remote locations. After the recent acquisition of Eagle Domestic Drilling Operations, Blast's primary business is as a drilling contractor with three land rigs available for use and three more expected to be deployed in October, November and early 2007, respectively. Also, the Company is developing a proprietary abrasive fluid jetting (AFJ) rig with the capability of performing down-hole services that cut through the well casing, penetrate into reservoir formations, and increase the amount of drainage area open to production. This service is expected to provide oil and gas producers with an attractive, lower cost alternative to existing conventional well stimulation or horizontal drilling services. Blast's third business segment is providing satellite services, including broadband internet and voice communications, to oil and gas companies throughout the world. This service allows these energy companies to monitor and control well head, pipeline or drilling operations in 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 integrate and successfully operate the newly acquired company, 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 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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