Blast Energy Services' Board Approves Definitive Agreement to Acquire Oil Properties

HOUSTON, Sept. 8 /PRNewswire-FirstCall/ -- Blast Energy Services, Inc.'s ("Blast")(OTC Bulletin Board: BESV) board of directors has approved the definitive 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 will pay $1.2 million in cash and stock for Sun's approximately 66% working interest in three wells currently producing a total of 43 gross barrels per day with an estimate of more than 60,000 barrels of net in recoverable reserves to Blast.

"This transaction marks the beginning of a new direction for Blast – one with cash flow to fund operations and potential upside to the crude oil markets.  With cash flow from this acquisition and future Quicksilver Resources settlement payments, we plan to cost effectively acquire additional producing properties in the future.  With a core business in place we believe that we will be able to pursue deployment of our applied fluid jetting technology as well as other exciting growth opportunities," stated Michael Peterson, acting President and Chief Executive Officer of Blast.

Under the terms of the definitive agreement Blast will: (i) make a cash payment of $600,000 on or before October 8, 2010; (ii) issue 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) issue $300,000 in shares of common stock at a price of the per share closing market price of Blast's stock at the end of the business day of the closing, but not to exceed 8 cents per share.

Blast intends to pay the cash portion of the agreement from a portion of the $2.8 million in funds, net of attorney's fees, owed to Blast from Quicksilver Resources in connection with the Compromise Settlement and Release Agreement entered into with Quicksilver in September 2008.  Blast is to receive net $1.4 million in two separate payments due on September 17, 2010 and 2011.

The definitive agreement has also received the approval of the Board of Directors of Sun and its shareholders. The transaction is expected to close within the next few days.

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.