Blast Energy Services Acquires Interest in Texas Oil Properties

HOUSTON, Sept. 23 /PRNewswire/ --  Blast Energy Services, Inc. ("Blast") (OTC Bulletin Board: BESV) has closed on the sales agreement with Sun Resources Texas, Inc., a privately-held company based in Longview, Texas ("Sun"), to acquire its oil and gas interests in the North Sugar Valley Field located in Matagorda County, Texas. Under the terms of this agreement, Blast paid $1.2 million in cash and stock for Sun's approximately 66% working interest in three wells currently producing a total of approximately 43 gross barrels per day with an estimate of more than 60,000 barrels of net in recoverable reserves to Blast.

"The Quicksilver Resources lawsuit settlement payment was received on-time and we immediately moved forward with the acquisition of properties from Sun. We look forward to working with Sun's management team on opportunities to acquire additional oil and gas interests in the future," stated Michael Peterson, acting President and Chief Executive Officer of Blast.

Under the terms of the sales agreement with Sun, Blast has: (i) made a cash payment of $600,000; (ii) issued an interest free promissory note for $300,000 payable at a rate of $10,000 per month commencing October 31, 2010 with the final balance payable in full on or before October 8, 2011; and (iii) issued to the shareholders of Sun 6,000,000 shares of restricted common stock of Blast based upon the $0.05 closing market price of Blast's stock on the day the agreement was signed.

Blast funded the initial cash portion of this acquisition from a portion of the $1.4 million in funds, net of attorney's fees, recently received from Quicksilver Resources in connection with the Compromise Settlement and Release Agreement entered into with Quicksilver in September 2008.  The monthly payments toward the promissory note are expected to be paid from a portion of the net operating cash flow generated by the acquired properties. The balloon payment on the promissory note is expected to be paid from a portion of the fourth and final Quicksilver settlement payment of a net $1.4 million due in September 2011.

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.

SOURCE Blast Energy Services, Inc.