HOUSTON, Oct. 21 /PRNewswire-FirstCall/ -- As a result of favorably settling certain lawsuits with former customers, Blast Energy Services (OTC:BESV) (BULLETIN BOARD: BESV) has eliminated $2.25 million of long-term debt and increased assets by more than $6 million. After the impact of all the transactions below are considered, Blast is expected to have a pro-forma shareholders equity balance in excess of $7 million and working capital greater than $2 million as of September 30, 2008. This compares to negative shareholders equity of approximately $2 million and a near zero working capital balance as of June 30, 2008. "This action, coming on the heels of our emergence from Chapter 11 in February 2008, demonstrates our strong commitment to building value for our shareholders," said John O'Keefe, President and CEO of Blast. "We are now poised to enter a growth phase for the company and hope to move towards an AMEX listing in the future." Blast has paid off its $2.1 million Senior Lien with Laurus Master Fund and a $125,000 Note with McClain County, Oklahoma as a result of favorably settling certain law suits with former customers. Additionally, approximately $200,000 owed to Blast's board of directors for deferred compensation was converted into stock. Blast has also redeemed $1 million of its 8% Series 'A' Convertible Preferred Stock leaving approximately 60 million Common shares issued and 6 million Preferred shares issued and outstanding. New Business Opportunities Blast has been working with consultants to develop promising new business opportunities, including application of heavy oil upgrading and nitrogen rejection technologies. Both of these oil and gas field technologies have the potential to convert stranded resources into valuable oil and gas reserves at very attractive cost/benefit ratios. Intelligent Petro Services Module Blast plans to schedule further demonstrations for many other potential energy customers and attend certain trade shows to promote this new remote monitoring and control product. A slide show of the product demonstration conducted in early September 2008 has been posted to our website (http://www.blastenergyservices.com/). The next desired step is to conduct a long-term test at a client's facility for 3-6 months to determine how the product performs in the external elements. Satellite Services During September and October 2008, Blast shipped and installation has begun to replace a microwave network supporting a SCADA pipeline monitoring system for a new major pipeline customer. Blast has also shipped three new systems to an existing customer. Based upon this business, Blast expects this business unit to begin generating a positive gross margin before the end of the year. Down-hole Solutions Blast's horizontal radial jetting rig achieved a five fold and a twelve fold increase in natural gas production at two wells drilled in Abilene, Texas. Lateral extensions reached 50 feet in two directions in each well bore. The rig is currently on stand-by at the Reliance Oil & Gas staging yard in Luling, Texas, pending start up of jetting operations in the Austin Chalk formation of South Texas. Blast plans to move its rig to that area the week of October 27, 2008 for a work program of up to twenty wells. 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. DATASOURCE: Blast Energy Services, Inc. CONTACT: John MacDonald of Blast Energy Services, Inc., +1-281-453-2888, or +1-713-725-9244, Web site: http://www.blastenergyservices.com/

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