HOUSTON, Oct. 25 /PRNewswire-FirstCall/ -- Blast Energy Services (OTC:BESV) (BULLETIN BOARD: BESV) , through its wholly owned subsidiary Eagle Domestic Drilling Operations ("Eagle"), has signed day-work drilling contracts with three new customers. Eagle Rig #11 is presently on location in West Texas and Eagle Rig #12 is being mobilized to drill a three-well program in North Texas, with an option for an additional three wells. Another rig will be deployed for a third customer on a one-well program to commence in early November near Monroe, Louisiana. Blast expects to generate approximately $2 million of revenue from these contracts excluding the three well option on Rig #12. "Despite the loss of Eagle's previous contract holders and the recent weakness in natural gas prices, we are beginning to see some traction in demand for our drilling rigs," said David M. Adams President & Co-CEO of Blast Energy Services, Inc. "We are in discussions with several customers expressing interest in drilling services and expect to have our entire five rig fleet under contract by year end." Meanwhile, Blast has filed suit against Quicksilver Resources for breach of contract, among other claims, under the terms of the two-year drilling contracts acquired with the purchase of the land drilling business in August 2006. Quicksilver had executed contracts for the drilling capabilities of three rigs -- one rig that had commenced drilling operations with them in July and two additional rigs that are becoming available in October and November. Blast has learned that Quicksilver has filed a lawsuit asking for rescission of the contracts. The Company intends to vigorously defend itself in this proceeding and believes that early termination provisions under the Quicksilver contracts entitle them to a reimbursement of lost revenues of approximately $10 million per rig. Blast is also involved in another breach of contract suit against Hallwood Petroleum for two drilling rigs with similar potential upside damages. Due to the early termination of these IADC term contracts, the Company suspends its previously disclosed guidelines for 2007 revenues relating to Eagle's contract drilling business, which assumed the contribution from five rigs drilling continuously during the year at the contracted rates. In related news, Blast's prototype abrasive jetting unit has arrived on location at the Department of Energy's Rocky Mountain Oil Field Testing Facility in Wyoming. The previously announced testing program for this unit's specialized down-hole completion capabilities is expected to commence this week. Testing plans include cutting holes, slots and windows in an initial test well in the 400 to 1,000 foot depth range before moving to additional wells in the 3,000 to 5,000 foot depth range. The Rocky Mountain Oilfield Testing Facility is provided by the Department of Energy as a field test site for emerging and developing technologies to address critical energy industry issues. The field test site is a 10,000 acre operating oil field offering a full complement of associated facilities and equipment on-site. There are approximately 1,200 well bores and approximately 600 producing wells, in nine producing reservoirs ranging in depth from 500 to 5,000 feet. About Blast Energy Services, Inc. Blast Energy Services, Inc. is a publicly traded company based in Houston. Our mission is to substantially improve the economics of existing oil and gas operations through the application of our worldwide licensed and proprietary technologies. Our new major business, effective August 2006, is conventional land rig drilling onshore USA with its own fleet of drill rigs and crews. Using specially fabricated mobile drilling rigs we intend to operate a commercially viable energy service business, including: specialty casing cutting, perforation, fracturing services and lateral drilling with the potential to penetrate through well casing and into reservoir formations to stimulate oil and gas production. This service should provide oil and gas producers with an attractive, lower cost alternative to existing well stimulation or horizontal drilling services. Additionally, we are providing satellite services to oil and gas producers. This service allows them to monitor and control well head, pipeline or drilling operations through low- cost broadband data and voice services from remote operations where conventional land based communication networks do not exist or are too costly to install. Please visit our website: http://www.blastenergyservices.com/ . Safe Harbor Statement 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 ability to integrate and successfully operate the newly acquired company, 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 Form SB-2 and its periodic filings on Form 10-KSB, 10-QSB, and other current reports. DATASOURCE: Blast Energy Services, Inc. CONTACT: John MacDonald of Blast Energy Services, Inc., +1-281-453-2888, or +1-713-725-9244, or Web site: http://www.blastenergyservices.com/

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