Blast Energy Services, Inc. (BESV) shares jump on test results

Blast Energy Services, Inc. (OTCBB: BESV) shares travelled 18% higher Monday to 5.9 cents, on word that its initial testing program on a well in California is currently being evaluated. Shares in the stock numbered 51,000, still short of its daily average of 81,000.

The Houston-based energy company announced today that the initial testing program on the Solimar Energy 76-33 well in the Guijarral Hills Field Area located in Fresno County has been completed without encountering significant hydrocarbons. The Lower Avenal, Lower Gatchell and Leda formation were “tight” and did not yield significant amounts of formation fluid when perforated.

In a news release documenting the results, Blast noted that a significant find of unconventional Kreyenhagen Shale was discovered during the drilling with over 1,000 feet of oil and gas show. The Kreyenhagen produces in the region and may have potential for commercial accumulations with some of the samples demonstrating up to 19% of oil saturation. Core samples taken during the drilling are currently being tested in the laboratory.

In the same release, acting Blast CEO Michael Peterson said, ”though we are disappointed with the initial results we experienced in our first three tests, we still have a number of potential zones to pursue, including the Leda zone which may still be productive beyond the damaged formation. The Kreyenhagen Shale also presents significant potential as an unconventional shale play with the acreage”

Blast is in active discussions with Australian-based Solimar Energy Limited, regarding next steps including leadership and operatorship of the project. A plan to move forward will be formalized in the coming weeks.