Once was the time when companies were molded to do one thing and do it good. Distractions were to be avoided for fear of losing focus and a steady revenue stream. In today’s marketplace the same is true in a general sense, but the idea is quietly losing some of its imperativeness as allied markets show opportunity and the possibility for diversification. Technology is largely responsible for this subtle change to the markets as it mingles its tentacles across traditionally oriented market lines. Staying true to a company’s traditional mission is necessary, but if an investor can find a company that successfully blends their traditional market with an allied one, profit can be had in ways that may not have been originally thought of.
Blast Energy Services Inc., an oil and gas energy services company, works to offer down-hole and satellite services to oil and gas well operators. The company also offers licensed down-hole oil and gas drilling technology to other industries such as military munitions disposal, specialty steel and glass cutting and salvage industries.
Being married to one particular end-use application can be extremely limiting in an increasingly competitive oil and gas services market. More and more start-up companies are entering the field to take advantage of a boom in domestic oil and gas exploration. Being able to be comparative in the oil and gas services market requires solid technology and management to succeed, but it also requires a lateral vision to sustain solid revenues and profit.
With this in mind, the company has embarked on a mission to sell its traditional advanced down-hole case milling, well stimulation and lateral drilling services while pursuing remote satellite services for wells and pipelines that may be less adaptable to electronic monitoring and operation. In this regard, the company has found solid successes in recent quarters with the shipping of three satellite systems to an existing customer and the construction of a replacement microwave system for a major pipeline monitoring program. This, combined with an oil and gas rig being moved into place in southern Texas (this week), finds the company beginning to see some progress after an organizational realigning.
The company’s ability to deal with growth issues has lead to a stronger company with a balance sheet that appears ready to move forward. Past debt issues have been resolved as has company initiated litigation. It now sees working capital and a debt ratio that will enable it to take advantage of oil and gas companies working to stimulate marginal wells. Its lateral drilling program is more cost effective for these companies and allows them to access larger deposits of oil and gas then were technically feasible in the past.
As Blast Energy Services finds its new pace, it does appear to have several as of yet untapped revenue streams available to it. Time and steady management appear to be on Blast’s side as it moves forward with profit ready to be had.
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