HOUSTON, June 7 /PRNewswire-FirstCall/ -- Blast Energy Services (OTC:BESV) (BULLETIN BOARD: BESV) has signed a letter of intent to further evaluate the potential of a purchase transaction to acquire several U.S. rotary land drilling rigs. The acquisition is primarily subject to the execution of a definitive agreement between the parties, acceptable financing terms and board approvals. "This acquisition appears to provide a significant and highly complementary base of operations for our energy services business," said John O'Keefe, EVP and Co-CEO. "We believe that it clearly fits with our current business plan and may provide substantial added value to our shareholders." A successful acquisition would provide a major boost to Blast's energy services business and involves the purchase of several rotary land drilling rigs for approximately $50 million, including two-year contracts with oil and gas well operators and experienced drilling rig crews. At current contracted day-rates, each rig can generate more than $7 million per year in revenue. The transaction is expected to be funded by a combination of debt and equity components. Based upon initial economic evaluations, management believes that this multiple rig acquisition would be accretive to Blast shareholders. Blast Rig #1 Update Within two weeks, Blast Rig #1 is expected to be deployed on a private well location to fully evaluate the effectiveness of the repairs made to the rig's coil tubing delivery system. After this shakedown process, the rig is expected to return to the Many, Louisiana well location in order to complete the job for Oracle Operating LLC and demonstrate its lateral jetting capabilities. After this point, the rig will be ready to commence its commercial deployment with new customers. "Interest in our abrasive cutting services remains high. With the rig on schedule to begin commercial operations in July, we are pursuing contacts with interested oil & gas operators," said David Adams, President & Co-CEO. While on its initial test well location in April 2006, the Blast Rig #1 successfully demonstrated the ability to cut through the steel well casing using abrasive fluid jetting from within the well-bore. The Company was also successful in shaking down the major technology systems of the rig, including the abrasive cutting system. However, we encountered several basic coil tubing components that needed immediate repair and returned to the yard before attempting to test the rig's lateral drilling capabilities. The Company has estimated rig repairs to cost approximately $75,000. 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. 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 raise necessary capital to fund acquisitions, rig repairs or growth; adequate liquidity to manage operations and debt obligations; the introduction of new services; commercial acceptance and viability of such 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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