Blast Energy Announces That Its Recently Drilled California Well is Being Evaluated

HOUSTON, June 20, 2011 /PRNewswire/ -- Blast Energy Services, Inc. ("Blast")(OTC BB: BESV) announced today that the initial testing program on the Solimar Energy 76-33 well in the Guijarral Hills Field Area located in Fresno County, California, 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. The Leda also showed signs of formation damage near the wellbore. Blast and Solimar Energy ("Solimar"), the operator of the well, are now evaluating the results of the testing program and the other conventional sandstone formations that showed hydrocarbon potential: Lower Vacqueros, Upper Vacqueros and Upper Temblor formations.  While Blast originally paid two-thirds of the costs of drilling the well, pursuant to the terms of its arrangement with Solimar, Blast is now heads up on this project and is responsible for 50% of any costs going forward.

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.

"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," stated Michael Peterson, acting President and Chief Executive Officer of Blast.

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

Solimar is a wholly-owned subsidiary of Solimar Energy Limited (SGY.AX), a publicly-traded company on the Australia Stock Exchange based in Melbourne, Australia.

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's 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 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.

SOURCE Blast Energy Services, Inc.