Document:

Exhibit 4.2

    Exhibit
      4.2

     

    THIS
      WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
      STATE SECURITIES LAWS. THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE
      OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
      IN
      THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT UNDER
      SAID
      ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR
      AN
      OPINION OF COUNSEL REASONABLY SATISFACTORY TO BLAST ENERGY SERVICES, INC.
      THAT
      SUCH
      REGISTRATION IS NOT REQUIRED.

    

    Right
      to
      Purchase up to 6,090,000 Shares of Common Stock of

    Blast
      Energy Services, Inc.

    (subject
      to adjustment as provided herein)

     

    COMMON
      STOCK PURCHASE WARRANT

    
      	 	
              Issue
                Date: August 25, 2006

            

    

     

    BLAST
      ENERGY SERVICES, INC.,
      a
      corporation organized under the laws of the State of California (the “Company”),
      hereby certifies that, for value received, LAURUS MASTER FUND, LTD., or assigns
      (the “Holder”), is entitled, subject to the terms set forth below, to purchase
      from the Company (as defined herein) from
      and
      after the Issue Date of this Warrant and at any time or from time to time before
      5:00 p.m., New York time, through the close of business August 25, 2013 (the
      “Expiration Date”),
      up to
      6,090,000 fully paid and nonassessable shares of Common Stock (as hereinafter
      defined), par value of $0.001 per share, at the applicable Exercise Price per
      share (as defined below). The number and character of such shares of Common
      Stock and the applicable Exercise Price per share are subject to adjustment
      as
      provided herein.

    As
      used
      herein the following terms, unless the context otherwise requires, have the
      following respective meanings:

    (a) The
      term
“Company” shall mean Blast Energy Services, Inc. and any person or entity which
      shall succeed, or assume the obligations of, Blast Energy Services, Inc.
      hereunder.

    (b) The
      term
“Common Stock” shall mean (i) the Company’s Common Stock, no par value per
      share; and (ii) any other securities into which or for which any of the
      securities described in the preceding clause (i) may be converted or exchanged
      pursuant to a plan of recapitalization, reorganization, merger, sale of assets
      or otherwise.

    (c) The
      “Exercise Price” shall mean a price of $1.44.

    (d) The
      term
“Other Securities” shall mean any stock (other than Common Stock) and other
      securities of the Company or any other person (corporate or otherwise) which
      the
      holder of the Warrant at any time shall be entitled to receive, or shall
      have

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    received,
      on the exercise of the Warrant, in lieu of or in addition to Common Stock,
      or
      which at any time shall be issuable or shall have been issued in exchange for
      or
      in replacement of Common Stock or Other Securities pursuant to Section 4 or
      otherwise.

     

    1. Exercise
      of Warrant.

     

    1.1. Number
      of
      Shares Issuable upon Exercise. From and after the date hereof through and
      including the Expiration Date, the Holder shall be entitled to receive, upon
      exercise of this Warrant in whole or in part, by delivery of an original or
      fax
      copy of an exercise notice in the form attached hereto as Exhibit A (the
“Exercise Notice”), shares of Common Stock of the Company, subject to adjustment
      pursuant to Section 4.

     

    1.2. Fair
      Market Value. For purposes hereof, the “Fair Market Value” of a share of Common
      Stock as of a particular date (the “Determination Date”) shall
      mean:

     

    (a) If
      the
      Company’s Common Stock is traded on the American Stock Exchange or another
      national exchange or is quoted on the National or Capital Market of The Nasdaq
      Stock Market, Inc.(“Nasdaq”), then the closing or last sale price, respectively,
      reported for the last business day immediately preceding the Determination
      Date.

    (b) If
      the
      Company’s Common Stock is not traded on the American Stock Exchange or another
      national exchange or on the Nasdaq but is traded on the NASD Over the Counter
      Bulletin Board, then the mean of the average of the closing bid and asked prices
      reported for the last business day immediately preceding the Determination
      Date.

    (c) Except
      as
      provided in clause (d) below, if the Company’s Common Stock is not publicly
      traded, then as the Holder and the Company agree or in the absence of agreement
      by arbitration in accordance with the rules then in effect of the American
      Arbitration Association, before a single arbitrator to be chosen from a panel
      of
      persons qualified by education and training to pass on the matter to be
      decided.

    (d) If
      the
      Determination Date is the date of a liquidation, dissolution or winding up,
      or
      any event deemed to be a liquidation, dissolution or winding up pursuant to
      the
      Company’s charter, then all amounts to be payable per share to holders of the
      Common Stock pursuant to the charter in the event of such liquidation,
      dissolution or winding up, plus all other amounts to be payable per share in
      respect of the Common Stock in liquidation under the charter, assuming for
      the
      purposes of this clause (d) that all of the shares of Common Stock then issuable
      upon exercise of the Warrant are outstanding at the Determination
      Date.

     

    1.3. Company
      Acknowledgment. The Company will, at the time of the exercise of this Warrant,
      upon the request of the Holder acknowledge in writing its continuing obligation
      to afford to such Holder any rights to which such Holder shall continue to
      be
      entitled after such exercise in accordance with the provisions of this Warrant.
      If the Holder shall fail to make any such request, such failure shall not affect
      the continuing obligation of the Company to afford to such Holder any such
      rights.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1.4. Trustee
      for Warrant Holders. In the event that a bank or trust company shall have been
      appointed as trustee for the Holders of this Warrant pursuant to Subsection
      3.2,
      such bank or trust company shall have all the powers and duties of a warrant
      agent (as hereinafter described) and shall accept, in its own name for the
      account of the Company or such successor person as may be entitled thereto,
      all
      amounts otherwise payable to the Company or such successor, as the case may
      be,
      on exercise of this Warrant pursuant to this Section 1.

     

    2. Procedure
      for Exercise.

     

    2.1. Delivery
      of Stock Certificates, Etc., on Exercise. The Company agrees that the shares
      of
      Common Stock purchased upon exercise of this Warrant shall be deemed to be
      issued to the Holder as the record owner of such shares as of the close of
      business on the date on which this Warrant shall have been surrendered and
      payment made for such shares in accordance herewith. As soon as practicable
      after the exercise of this Warrant in full or in part, and in any event within
      three (3) business days thereafter, the Company at its expense (including the
      payment by it of any applicable issue taxes) will cause to be issued in the
      name
      of and delivered to the Holder, or as such Holder (upon payment by such Holder
      of any applicable transfer taxes) may direct in compliance with applicable
      securities laws, a certificate or certificates for the number of duly and
      validly issued, fully paid and nonassessable shares of Common Stock (or Other
      Securities) to which such Holder shall be entitled on such exercise, plus,
      in
      lieu of any fractional share to which such holder would otherwise be entitled,
      cash equal to such fraction multiplied by the then Fair Market Value of one
      full
      share, together with any other stock or other securities and property (including
      cash, where applicable) to which such Holder is entitled upon such exercise
      pursuant to Section 1 or otherwise.

     

    2.2 Exercise.

     

    (a) Payment
      may be made in cash by wire transfer or by certified or official bank check
      payable to the order of the Company equal to the applicable aggregate Exercise
      Price for the number of Common Shares specified in such Exercise Notice (as
      such
      exercise number shall be adjusted to reflect any adjustment in the total number
      of shares of Common Stock issuable to the Holder per the terms of this Warrant)
      and the Holder shall thereupon be entitled to receive the number of duly
      authorized, validly issued, fully-paid and non-assessable shares of Common
      Stock
      (or Other Securities) determined as provided herein.

    (b) Notwithstanding
      the provisions of subsection (a) above to the contrary, if at the time the
      Holder exercises this Warrant a Registration Statement (as defined in the
      Registration Rights Agreement entered into by the Company and the Holder dated
      as of the date hereof, as the same may be amended, restated, supplemented and/or
      otherwise modified from time to time, the “Registration Rights Agreement”)
      covering the Common Stock issuable to the Holder upon exercise of this Warrant
      shall not have been declared effective under the Securities Act (as hereafter
      defined) in accordance with the terms of the Registration Rights Agreement,
      payment may be made, in the Holder’s discretion, either (i) in cash by wire
      transfer or by certified or official bank check payable to the order of the
      Company equal to the applicable aggregate Exercise Price, (ii) by delivery
      of

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    this
      Warrant, or shares of Common Stock and/or Common Stock receivable upon exercise
      of this Warrant in accordance with the formula set forth in subsection (c)
      below, or (iii) by a combination of any of the foregoing methods, for the number
      of Common Shares specified in such Exercise Notice (as such exercise number
      shall be adjusted to reflect any adjustment in the total number of shares of
      Common Stock issuable to the Holder per the terms of this Warrant) and the
      Holder shall thereupon be entitled to receive the number of duly authorized,
      validly issued, fully-paid and non-assessable shares of Common Stock (or Other
      Securities) determined as provided herein.

    (c) In
      accordance with subsection (b) above, if the Fair Market Value of one share
      of
      Common Stock is greater than the Exercise Price (at the date of calculation
      as
      set forth below), in lieu of exercising this Warrant for cash, the Holder may
      elect to receive shares equal to the value (as determined below) of this Warrant
      (or the portion thereof being exercised) by surrender of this Warrant at the
      principal office of the Company together with the properly endorsed Exercise
      Notice in which event the Company shall issue to the Holder a number of shares
      of Common Stock computed using the following formula:

    

    

      
        	
                X=

              	
                Y(A-B)

              	 
	 	
                A

              	 
	
                Where
                  X =

              	
                the
                  number of shares of Common Stock to be issued to the
                  Holder

              
	
                Y
                  =

              	
                the
                  number of shares of Common Stock purchasable under this Warrant
                  or, if
                  only a portion of this Warrant is being exercised, the portion
                  of this
                  Warrant being exercised (at the date of such
                  calculation)

              
	
                A
                  =

              	
                the
                  Fair Market Value of one share of the Company’s Common Stock (at the date
                  of such calculation)

              
	
                B
                  =

              	
                the
                  Exercise Price per share (as adjusted to the date of such
                  calculation)

              

      

    

     

    3. Effect
      of Reorganization, Etc.; Adjustment of Exercise Price.

     

    3.1. Reorganization,
      Consolidation, Merger, Etc. In case at any time or from time to time, the
      Company shall (a) effect a reorganization, (b) consolidate with or merge into
      any other person, or (c) transfer all or substantially all of its properties
      or
      assets to any other person under any plan or arrangement contemplating the
      dissolution of the Company, then, in each such case, as a condition to the
      consummation of such a transaction, proper and adequate provision shall be
      made
      by the Company whereby the Holder, on the exercise hereof as provided in Section
      1 at any time after the consummation of such reorganization, consolidation
      or
      merger or the effective date of such dissolution, as the case may be, shall
      receive, in lieu of the Common Stock (or Other Securities) issuable on such
      exercise prior to such consummation or such effective date, the stock and other
      securities and property (including cash) to which such Holder would have been
      entitled upon such consummation or in connection with such dissolution, as
      the

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    case
      may
      be, if such Holder had so exercised this Warrant, immediately prior thereto,
      all
      subject to further adjustment thereafter as provided in Section 4.

     

    3.2. Dissolution.
      In the event of any dissolution of the Company following the transfer of all
      or
      substantially all of its properties or assets, the Company, concurrently with
      any distributions made to holders of its Common Stock, shall at its expense
      deliver or cause to be delivered to the Holder the stock and other securities
      and property (including cash, where applicable) receivable by the Holder
      pursuant to Section 3.1, or, if the Holder shall so instruct the Company, to
      a
      bank or trust company specified by the Holder and having its principal office
      in
      New York, NY as trustee for the Holder (the “Trustee”).

     

    3.3. Continuation
      of Terms. Upon any reorganization, consolidation, merger or transfer (and any
      dissolution following any transfer) referred to in this Section 3, this Warrant
      shall continue in full force and effect and the terms hereof shall be applicable
      to the shares of stock and other securities and property receivable on the
      exercise of this Warrant after the consummation of such reorganization,
      consolidation or merger or the effective date of dissolution following any
      such
      transfer, as the case may be, and shall be binding upon the issuer of any such
      stock or other securities, including, in the case of any such transfer, the
      person acquiring all or substantially all of the properties or assets of the
      Company, whether or not such person shall have expressly assumed the terms
      of
      this Warrant as provided in Section 4. In the event this Warrant does not
      continue in full force and effect after the consummation of the transactions
      described in this Section 3, then the Company’s securities and property
      (including cash, where applicable) receivable by the Holder will be delivered
      to
      the Holder or the Trustee as contemplated by Section 3.2.

     

    4. Extraordinary
      Events Regarding Common Stock.
      In the
      event that the Company shall (a) issue additional shares of the Common Stock
      as
      a dividend or other distribution on outstanding Common Stock or any preferred
      stock issued by the Company, (b) subdivide its outstanding shares of Common
      Stock, or (c) combine its outstanding shares of the Common Stock into a
      smaller number of shares of the Common Stock, then, in each such event, the
      Exercise Price shall, simultaneously with the happening of such event, be
      adjusted by multiplying the then Exercise Price by a fraction, the numerator
      of
      which shall be the number of shares of Common Stock outstanding immediately
      prior to such event and the denominator of which shall be the number of shares
      of Common Stock outstanding immediately after such event, and the product so
      obtained shall thereafter be the Exercise Price then in effect. The Exercise
      Price, as so adjusted, shall be readjusted in the same manner upon the happening
      of any successive event or events described herein in this Section 4. The number
      of shares of Common Stock that the Holder shall thereafter, on the exercise
      hereof as provided in Section 1, be entitled to receive shall be adjusted to
      a
      number determined by multiplying the number of shares of Common Stock that
      would
      otherwise (but for the provisions of this Section 4) be issuable on such
      exercise by a fraction of which (a) the numerator is the Exercise Price that
      would otherwise (but for the provisions of this Section 4) be in effect, and
      (b)
      the denominator is the Exercise Price in effect on the date of such exercise
      (taking into account the provisions of this Section 4).

     

    5. Certificate
      as to Adjustments.
      In each
      case of any adjustment or readjustment in the shares of Common Stock (or Other
      Securities) issuable on the exercise of this Warrant, the

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Company
      at its expense will promptly cause its Chief Financial Officer or other
      appropriate designee to compute such adjustment or readjustment in accordance
      with the terms of this Warrant and prepare a certificate setting forth such
      adjustment or readjustment and showing in detail the facts upon which such
      adjustment or readjustment is based, including a statement of (a) the
      consideration received or receivable by the Company for any additional shares
      of
      Common Stock (or Other Securities) issued or sold or deemed to have been issued
      or sold, (b) the number of shares of Common Stock (or Other Securities)
      outstanding or deemed to be outstanding, and (c) the Exercise Price and the
      number of shares of Common Stock to be received upon exercise of this Warrant,
      in effect immediately prior to such adjustment or readjustment and as adjusted
      or readjusted as provided in this Warrant. The Company will forthwith mail
      a
      copy of each such certificate to the Holder and any warrant agent of the Company
      (appointed pursuant to Section 11 hereof).

     

    6. Reservation
      of Stock, Etc., Issuable on Exercise of Warrant.
      The
      Company will at all times reserve and keep available, solely for issuance and
      delivery on the exercise of this Warrant, shares of Common Stock (or Other
      Securities) from time to time issuable on the exercise of this
      Warrant.

     

    7. Assignment;
      Exchange of Warrant.
      Subject
      to compliance with applicable securities laws, this Warrant, and the rights
      evidenced hereby, may be transferred by any registered holder hereof (a
“Transferor”) in whole or in part. On the surrender for exchange of this
      Warrant, with the Transferor’s endorsement in the form of Exhibit B attached
      hereto (the “Transferor Endorsement Form”) and together with evidence reasonably
      satisfactory to the Company demonstrating compliance with applicable securities
      laws, which shall include, without limitation, the provision of a legal opinion
      from the Transferor’s counsel (at the Transferor’s expense) that such transfer
      is exempt from the registration requirements of applicable securities laws,
      the
      Company at its expense (but with payment by the Transferor of any applicable
      transfer taxes) will issue and deliver to or on the order of the Transferor
      thereof a new Warrant of like tenor, in the name of the Transferor and/or the
      transferee(s) specified in such Transferor Endorsement Form (each a
“Transferee”), calling in the aggregate on the face or faces thereof for the
      number of shares of Common Stock called for on the face or faces of the Warrant
      so surrendered by the Transferor.

     

    8. Replacement
      of Warrant.
      On
      receipt of evidence reasonably satisfactory to the Company of the loss, theft,
      destruction or mutilation of this Warrant and, in the case of any such loss,
      theft or destruction of this Warrant, on delivery of an indemnity agreement
      or
      security reasonably satisfactory in form and amount to the Company or, in the
      case of any such mutilation, on surrender and cancellation of this Warrant,
      the
      Company at its expense will execute and deliver, in lieu thereof, a new Warrant
      of like tenor.

     

    9. Registration
      Rights.
      The
      Holder has been granted certain registration rights by the Company. These
      registration rights are set forth in a Registration Rights Agreement entered
      into by the Company and Holder dated as of the date hereof, as the same may
      be
      amended, modified and/or supplemented from time to time.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    10. Maximum
      Exercise.
      Notwithstanding anything herein to the contrary, in no event shall the Holder
      be
      entitled to exercise any portion of this Warrant in excess of that portion
      of
      this Warrant upon exercise of which the sum of (1) the number of shares of
      Common Stock beneficially owned by the Holder and its Affiliates (other than
      shares of Common Stock which may be deemed beneficially owned through the
      ownership of the unexercised portion of the Warrant or the unexercised or
      unconverted portion of any other security of the Holder subject to a limitation
      on conversion analogous to the limitations contained herein) and (2) the number
      of shares of Common Stock issuable upon the exercise of the portion of this
      Warrant with respect to which the determination of this proviso is being made,
      would result in beneficial ownership by the Holder and its Affiliates of any
      amount greater than 4.99% of the then outstanding shares of Common Stock
      (whether or not, at the time of such exercise, the Holder and its Affiliates
      beneficially own more than 4.99% of the then outstanding shares of Common
      Stock). As used herein, the term “Affiliate” means any person or entity that,
      directly or indirectly through one or more intermediaries, controls or is
      controlled by or is under common control with a person or entity, as such terms
      are used in and construed under Rule 144 under the Securities Act of 1933,
      as
      amended (the “Securities Act”).  For purposes of the proviso to the second
      preceding sentence, beneficial ownership shall be determined in accordance
      with
      Section 13(d) of the Securities Exchange Act of 1934, as amended, and
      Regulations 13D-G thereunder, except as otherwise provided in clause (1) of
      such
      proviso.  The limitations set forth herein (x) may be waived by the Holder
      upon provision of no less than sixty-one (61) days prior notice to the Company
      and (y) shall automatically become null and void following notice to the Company
      upon the occurrence and during the continuance of an Event of Default (as
      defined in the Note referred to in the Securities Purchase Agreement dated
      as of
      the date hereof among the Holder and the Company (as amended, modified, restated
      and/or supplemented from time to time, the “Purchase Agreement”)).

     

    11. Warrant
      Agent.
      The
      Company may, by written notice to the Holder of the Warrant, appoint an agent
      for the purpose of issuing Common Stock (or Other Securities) on the exercise
      of
      this Warrant pursuant to Section 1, exchanging this Warrant pursuant to Section
      7, and replacing this Warrant pursuant to Section 8, or any of the foregoing,
      and thereafter any such issuance, exchange or replacement, as the case may
      be,
      shall be made at such office by such agent.

     

    12. Transfer
      on the Company’s Books.
      Until
      this Warrant is transferred on the books of the Company, the Company may treat
      the registered holder hereof as the absolute owner hereof for all purposes,
      notwithstanding any notice to the contrary.

     

    13. Notices,
      Etc.
      All
      notices and other communications from the Company to the Holder shall be mailed
      by first class registered or certified mail, postage prepaid, at such address
      as
      may have been furnished to the Company in writing by such Holder or, until
      any
      such Holder furnishes to the Company an address, then to, and at the address
      of,
      the last Holder who has so furnished an address to the Company.

     

    14. Miscellaneous.
      This
      Warrant and any term hereof may be changed, waived, discharged or terminated
      only by an instrument in writing signed by the party against which enforcement
      of such change, waiver, discharge or termination is sought. THIS
      WARRANT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SHALL
      BE
      GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
      WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. ANY ACTION BROUGHT CONCERNING
      THE TRANSACTIONS CONTEMPLATED BY THIS WARRANT SHALL BE BROUGHT ONLY IN THE
      STATE
      COURTS OF NEW YORK OR IN THE FEDERAL COURTS LOCATED IN THE STATE OF NEW YORK;
      PROVIDED, HOWEVER, THAT THE HOLDER MAY CHOOSE TO WAIVE THIS PROVISION AND BRING
      AN ACTION OUTSIDE THE STATE OF NEW YORK. The individuals executing this Warrant
      on behalf of the Company agree to submit to the jurisdiction of such courts
      and
      waive trial by jury. The prevailing party shall be entitled to recover from
      the
      other party its reasonable attorneys’ fees and costs. In the event that any
      provision of this Warrant is invalid or unenforceable under any applicable
      statute or rule of law, then such provision shall be deemed inoperative to
      the
      extent that it may conflict therewith and shall be deemed modified to conform
      with such statute or rule of law. Any such provision which may prove invalid
      or
      unenforceable under any law shall not affect the validity or enforceability
      of
      any other provision of this Warrant. The headings in this Warrant are for
      purposes of reference only, and shall not limit or otherwise affect any of
      the
      terms hereof. The invalidity or unenforceability of any provision hereof shall
      in no way affect the validity or enforceability of any other provision hereof.
      The Company acknowledges that legal counsel participated in the preparation
      of
      this Warrant and, therefore, stipulates that the rule of construction that
      ambiguities are to be resolved against the drafting party shall not be applied
      in the interpretation of this Warrant to favor any party against the other
      party.

    

    
      
        
          

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    IN
      WITNESS WHEREOF, the Company has executed this Warrant as of the date first
      written above.

    

    
      	 	
              BLAST
                ENERGY SERVICES, INC.

            
	 	 
	
              WITNESS:

            	 
	 	
              By:
                /s/
                John O’Keefe    

            
	 	
              Name:
                John O’Keefe

            
	
              /s/
                John MacDonald    

            	
              Title:
                EVP, CFO, Co-CEO

            

    

    

    
      
        
          

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    Exhibit
      A

     

    FORM
      OF SUBSCRIPTION

    

    (To
      Be
      Signed Only On Exercise Of Warrant)

    TO: Blast
      Energy Services, Inc.

    14550
      Torrey Chase Blvd., Suite 330

    Houston,
      TX 77014

    Attention:
      Chief Financial Officer

     

    The
      undersigned, pursuant to the provisions set forth in the attached Warrant
      (No.____) (as amended, restated or otherwise modified from time to time, the
      “Warrant”; capitalized terms used but not defined in this notice shall have the
      meanings ascribed thereto in the Warrant), hereby irrevocably elects to purchase
      (check applicable box):

    
      	 	
              ________
                shares of the Common Stock covered by such Warrant; or

            
	 	
              the
                maximum number of shares of Common Stock covered by such Warrant
                pursuant
                to the cashless exercise procedure set forth in Section
                2.

            

    

     

    The
      undersigned herewith makes payment of the full Exercise Price for such shares
      at
      the price per share provided for in such Warrant, which is $___________. Such
      payment takes the form of (check applicable box or boxes):

    
      	 	
              $__________
                in lawful money of the United States; and/or

            
	 	
              the
                cancellation of such portion of the attached Warrant as is exercisable
                for
                a total of _______ shares of Common Stock (using a Fair Market Value
                of
                $_______ per share for purposes of this calculation);
                and/or

            
	 	
              the
                cancellation of such number of shares of Common Stock as is necessary,
                in
                accordance with the formula set forth in Section 2.2, to exercise
                this
                Warrant with respect to the maximum number of shares of Common Stock
                purchasable pursuant to the cashless exercise procedure set forth
                in
                Section 2.

            

    

     

    The
      undersigned requests that the certificates for such shares be issued in the
      name
      of, and delivered to ______________________________________________ whose
      address is
      ___________________________________________________________________________.

     

    The
      undersigned represents and warrants that all offers and sales by the undersigned
      of the securities issuable upon exercise of the within Warrant shall be made
      pursuant to registration of the Common Stock under the Securities Act of 1933,
      as amended (the “Securities Act”), or pursuant to an exemption from registration
      under the Securities Act.

     

    
      	
              Dated: 

            	 
	 	
              (Signature
                must conform to name of holder as specified on the face of the
                Warrant)

              Address:     

               

            

    

    

    
      
        
          

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    Exhibit
      B

     

    FORM
      OF TRANSFEROR ENDORSEMENT

    (To
      Be
      Signed Only On Transfer Of Warrant)

     

    For
      value
      received, the undersigned hereby sells, assigns, and transfers unto the
      person(s) named below under the heading “Transferees” the right represented by
      the within Warrant to purchase the percentage and number of shares of Common
      Stock of Blast Energy Services, Inc. into which the within Warrant relates
      specified under the headings “Percentage Transferred” and “Number Transferred,”
respectively, opposite the name(s) of such person(s) and appoints each such
      person Attorney to transfer its respective right on the books of Blast Energy
      Services, Inc. with full power of substitution in the premises.

    
      	
              Transferees

            	
              Address

            	
              Percentage
                Transferred

            	
              Number

              Transferred

            
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

    

    

    
      	
              Dated: 

            	 
	 	
              (Signature
                must conform to name of holder as specified on the face of the
                Warrant)

              Address:     

               

            
	 	
               

               

              SIGNED
                IN THE PRESENCE OF:

               

               

              (Name)

            
	
               

              ACCEPTED
                AND AGREED:

              [TRANSFEREE]

               

               

               

              (Name)Exhibit 4.3

    Exhibit
      4.3

     

    THIS
      WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
      STATE SECURITIES LAWS. THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE
      OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
      IN
      THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT UNDER
      SAID
      ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO BLAST ENERGY SERVICES, INC. THAT SUCH REGISTRATION IS NOT
      REQUIRED.

    

    Right
      to
      Purchase up to 6,090,000 Shares of Common Stock of

    Blast
      Energy Services, Inc.

    (subject
      to adjustment as provided herein)

     

    COMMON
      STOCK PURCHASE WARRANT

     

    No.
      _________________Issue
      Date: August 25, 2006

     

    BLAST
      ENERGY SERVICES, INC.,
      a
      corporation organized under the laws of the State of California (the “Company”),
      hereby certifies that, for value received, LAURUS MASTER FUND, LTD., or assigns
      (the “Holder”), is entitled, subject to the terms set forth below, to purchase
      from the Company (as defined herein) from and after the Issue Date of this
      Warrant and at any time, up to 6,090,000 fully paid and nonassessable shares
      of
      Common Stock (as hereinafter defined), par value of $0.001 per share, at the
      applicable Exercise Price per share (as defined below). The number and character
      of such shares of Common Stock and the applicable Exercise Price per share
      are
      subject to adjustment as provided herein.

     

    As
      used
      herein the following terms, unless the context otherwise requires, have the
      following respective meanings: 

     

    (a) The
      term
“Company” shall mean Blast Energy Services, Inc. and any person or entity which
      shall succeed, or assume the obligations of, Blast Energy Services, Inc.
      hereunder. 

     

    (b) The
      term
“Common Stock” shall mean (i) the Company’s Common Stock, no par value per
      share; and (ii) any other securities into which or for which any of the
      securities described in the preceding clause (i) may be converted or exchanged
      pursuant to a plan of recapitalization, reorganization, merger, sale of assets
      or otherwise.

     

    (c) The
      term
“Exercise Price” shall mean $0.01 per share.

     

    (d) The
      term
“Other Securities” shall mean any stock (other than Common Stock) and other
      securities of the Company or any other person (corporate or otherwise) which
      the
      holder of the Warrant at any time shall be entitled to receive, or shall have
      received, on the exercise of the Warrant, in lieu of or in addition to Common
      Stock, or

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    which
      at
      any time shall be issuable or shall have been issued in exchange for or in
      replacement of Common Stock or Other Securities pursuant to Section 4 or
      otherwise. 

     

    1. Exercise
      of Warrant.
      

     

    1.1 Number
      of
      Shares Issuable upon Exercise. From and after the date hereof, the Holder shall
      be entitled to receive, upon exercise of this Warrant in whole or in part,
      by
      delivery of an original or fax copy of an exercise notice in the form attached
      hereto as Exhibit A (the “Exercise Notice”), shares of Common Stock of the
      Company, subject to adjustment pursuant to Section 4.

     

    1.2 Fair
      Market Value. For purposes hereof, the “Fair Market Value” of a share of Common
      Stock as of a particular date (the “Determination Date”) shall mean:

     

    (a) If
      the
      Company’s Common Stock is traded on the American Stock Exchange or another
      national exchange or is quoted on the National or Capital Market of The Nasdaq
      Stock Market, Inc. (“Nasdaq”), then the closing or last sale price,
      respectively, reported for the last business day immediately preceding the
      Determination Date.

     

    (b) If
      the
      Company’s Common Stock is not traded on the American Stock Exchange or another
      national exchange or on the Nasdaq but is traded on the NASD Over The Counter
      Bulletin Board, then the mean of the average of the closing bid and asked prices
      reported for the last business day immediately preceding the Determination
      Date.

     

    (c) Except
      as
      provided in clause (d) below, if the Company’s Common Stock is not publicly
      traded, then as the Holder and the Company agree or in the absence of agreement
      by arbitration in accordance with the rules then in effect of the American
      Arbitration Association, before a single arbitrator to be chosen from a panel
      of
      persons qualified by education and training to pass on the matter to be
      decided.

     

    (d) If
      the
      Determination Date is the date of a liquidation, dissolution or winding up,
      or
      any event deemed to be a liquidation, dissolution or winding up pursuant to
      the
      Company’s charter, then all amounts to be payable per share to holders of the
      Common Stock pursuant to the charter in the event of such liquidation,
      dissolution or winding up, plus all other amounts to be payable per share in
      respect of the Common Stock in liquidation under the charter, assuming for
      the
      purposes of this clause (d) that all of the shares of Common Stock then issuable
      upon exercise of the Warrant are outstanding at the Determination
      Date.

     

    1.3 Company
      Acknowledgment. The Company will, at the time of the exercise of this Warrant,
      upon the request of the Holder acknowledge in writing its continuing obligation
      to afford to such Holder any rights to which such Holder shall continue to
      be
      entitled after such exercise in accordance with the provisions of this Warrant.
      If the Holder shall fail to make any such request, such failure shall not affect
      the continuing obligation of the Company to afford to such Holder any such
      rights. 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    1.4 Trustee
      for Warrant Holders. In the event that a bank or trust company shall have been
      appointed as trustee for the holders of this Warrant pursuant to Subsection
      3.2,
      such bank or trust company shall have all the powers and duties of a warrant
      agent (as hereinafter described) and shall accept, in its own name for the
      account of the Company or such successor person as may be entitled thereto,
      all
      amounts otherwise payable to the Company or such successor, as the case may
      be,
      on exercise of this Warrant pursuant to this Section 1.

     

    2. Procedure
      for Exercise.

     

    2.1 Delivery
      of Stock Certificates, Etc., on Exercise. The Company agrees that the shares
      of
      Common Stock purchased upon exercise of this Warrant shall be deemed to be
      issued to the Holder as the record owner of such shares as of the close of
      business on the date on which this Warrant shall have been surrendered and
      payment made for such shares in accordance herewith. As soon as practicable
      after the exercise of this Warrant in full or in part, and in any event within
      three (3) business days thereafter, the Company at its expense (including the
      payment by it of any applicable issue taxes) will cause to be issued in the
      name
      of and delivered to the Holder, or as such Holder (upon payment by such Holder
      of any applicable transfer taxes) may direct in compliance with applicable
      securities laws, a certificate or certificates for the number of duly and
      validly issued, fully paid and nonassessable shares of Common Stock (or Other
      Securities) to which such Holder shall be entitled on such exercise, plus,
      in
      lieu of any fractional share to which such Holder would otherwise be entitled,
      cash equal to such fraction multiplied by the then Fair Market Value of one
      full
      share, together with any other stock or other securities and property (including
      cash, where applicable) to which such Holder is entitled upon such exercise
      pursuant to Section 1 or otherwise.

     

    2.2 Exercise.
      

     

    (a) Payment
      may be made in cash by wire transfer or by certified or official bank check
      payable to the order of the Company equal to the applicable aggregate Exercise
      Price for the number of Common Shares specified in such Exercise Notice (as
      such
      exercise number shall be adjusted to reflect any adjustment in the total number
      of shares of Common Stock issuable to the Holder per the terms of this Warrant)
      and the Holder shall thereupon be entitled to receive the number of duly
      authorized, validly issued, fully-paid and non-assessable shares of Common
      Stock
      (or Other Securities) determined as provided herein. 

     

    (b) Notwithstanding
      the provisions of subsection (a) above to the contrary, if at the time the
      Holder exercises this Warrant a Registration Statement (as defined in the
      Registration Rights Agreement entered into by the Company and the Holder dated
      as of the date hereof, as the same may be amended, restated, supplemented and/or
      otherwise modified from time to time, the “Registration Rights Agreement”)
      covering the Common Stock issuable to the Holder upon exercise of this Warrant
      shall not have been declared effective under the Securities Act (as hereafter
      defined) in accordance with the terms of the Registration Rights Agreement,
      payment may be made, in the Holder’s discretion, either (i) in cash by wire
      transfer or by certified or official bank check payable to the order of the
      Company equal to the applicable aggregate Exercise Price, (ii) by delivery
      of

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    this
      Warrant, or shares of Common Stock and/or Common Stock receivable upon exercise
      of this Warrant in accordance with the formula set forth in subsection (c)
      below, or (iii) by a combination of any of the foregoing methods, for the number
      of Common Shares specified in such Exercise Notice (as such exercise number
      shall be adjusted to reflect any adjustment in the total number of shares of
      Common Stock issuable to the Holder per the terms of this Warrant) and the
      Holder shall thereupon be entitled to receive the number of duly authorized,
      validly issued, fully-paid and non-assessable shares of Common Stock (or Other
      Securities) determined as provided herein.

     

    (c) In
      accordance with subsection (b) above, if the Fair Market Value of one share
      of
      Common Stock is greater than the Exercise Price (at the date of calculation
      as
      set forth below), in lieu of exercising this Warrant for cash, the Holder may
      elect to receive shares equal to the value (as determined below) of this Warrant
      (or the portion thereof being exercised) by surrender of this Warrant at the
      principal office of the Company together with the properly endorsed Exercise
      Notice in which event the Company shall issue to the Holder a number of shares
      of Common Stock computed using the following formula:

     

    
      	
              X=

            	
              _Y(A-B)_

                    
                A

            

    

     

    
      	
              Where
                X =

            	
              the
                number of shares of Common Stock to be issued to the
                Holder

            

    

     

    
      	
              Y
                =

            	
              the
                number of shares of Common Stock purchasable under this Warrant or,
                if
                only a portion of this Warrant is being exercised, the portion of
                this
                Warrant being exercised (at the date of such
                calculation)

            

    

     

    
      	
              A
                =

            	
              the
                Fair Market Value of one share of the Company’s Common Stock (at the date
                of such calculation)

            

    

     

    
      	
              B
                =

            	
              the
                Exercise Price per share (as adjusted to the date of such
                calculation)

            

    

     

    3. Effect
      of Reorganization, Etc.; Adjustment of Exercise Price.

     

    3.1 Reorganization,
      Consolidation, Merger, Etc. In case at any time or from time to time the Company
      shall (a) effect a reorganization, (b) consolidate with or merge into any other
      person, or (c) transfer all or substantially all of its properties or assets
      to
      any other person under any plan or arrangement contemplating the dissolution
      of
      the Company, then, in each such case, as a condition to the consummation of
      such
      a transaction, proper and adequate provision shall be made by the Company
      whereby the Holder, on the exercise hereof as provided in Section 1 at any
      time
      after the consummation of such reorganization, consolidation or merger or the
      effective date of such dissolution, as the case may be, shall receive, in lieu
      of the Common Stock (or Other Securities) issuable on such exercise prior to
      such consummation or such effective date, the stock and other securities and
      property (including cash) to which such Holder would have been entitled upon
      such consummation or in connection with such dissolution, as the case may be,
      if
      such Holder had so exercised this Warrant, immediately prior thereto, all
      subject to further adjustment thereafter as provided in Section
      4.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3.2 Dissolution.
      In the event of any dissolution of the Company following the transfer of all
      or
      substantially all of its properties or assets, the Company, concurrently with
      any distributions made to holders of its Common Stock, shall at its expense
      deliver or cause to be delivered to the Holder the stock and other securities
      and property (including cash, where applicable) receivable by the Holder
      pursuant to Section 3.1, or, if the Holder shall so instruct the Company, to
      a
      bank or trust company specified by the Holder and having its principal office
      in
      New York, NY as trustee for the Holder (the “Trustee”).

     

    3.3 Continuation
      of Terms. Upon any reorganization, consolidation, merger or transfer (and any
      dissolution following any transfer) referred to in this Section 3, this Warrant
      shall continue in full force and effect and the terms hereof shall be applicable
      to the shares of stock and other securities and property receivable on the
      exercise of this Warrant after the consummation of such reorganization,
      consolidation or merger or the effective date of dissolution following any
      such
      transfer, as the case may be, and shall be binding upon the issuer of any such
      stock or other securities, including, in the case of any such transfer, the
      person acquiring all or substantially all of the properties or assets of the
      Company, whether or not such person shall have expressly assumed the terms
      of
      this Warrant as provided in Section 4. In the event this Warrant does not
      continue in full force and effect after the consummation of the transactions
      described in this Section 3, then the Company’s securities and property
      (including cash, where applicable) receivable by the Holder will be delivered
      to
      the Holder or the Trustee as contemplated by Section 3.2.

     

    4. Extraordinary
      Events Regarding Common Stock.
      In the
      event that the Company shall (a) issue additional shares of the Common Stock
      as
      a dividend or other distribution on outstanding Common Stock or any preferred
      stock issued by the Company, (b) subdivide its outstanding shares of Common
      Stock, or (c) combine its outstanding shares of the Common Stock into a smaller
      number of shares of the Common Stock, then, in each such event, the Exercise
      Price shall, simultaneously with the happening of such event, be adjusted by
      multiplying the then Exercise Price by a fraction, the numerator of which shall
      be the number of shares of Common Stock outstanding immediately prior to such
      event and the denominator of which shall be the number of shares of Common
      Stock
      outstanding immediately after such event, and the product so obtained shall
      thereafter be the Exercise Price then in effect. The Exercise Price, as so
      adjusted, shall be readjusted in the same manner upon the happening of any
      successive event or events described herein in this Section 4. The number of
      shares of Common Stock that the Holder shall thereafter, on the exercise hereof
      as provided in Section 1, be entitled to receive shall be adjusted to a number
      determined by multiplying the number of shares of Common Stock that would
      otherwise (but for the provisions of this Section 4) be issuable on such
      exercise by a fraction of which (a) the numerator is the Exercise Price that
      would otherwise (but for the provisions of this Section 4) be in effect, and
      (b)
      the denominator is the Exercise Price in effect on the date of such exercise
      (taking into account the provisions of this Section 4). Notwithstanding the
      foregoing, in no event shall the Exercise Price be less than the par value
      of
      the Common Stock.

     

    5. Certificate
      as to Adjustments.
      In each
      case of any adjustment or readjustment in the shares of Common Stock (or Other
      Securities) issuable on the exercise of this Warrant, the Company at its expense
      will promptly cause its Chief Financial Officer or other
      appropriate

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    designee
      to compute such adjustment or readjustment in accordance with the terms of
      this
      Warrant and prepare a certificate setting forth such adjustment or readjustment
      and showing in detail the facts upon which such adjustment or readjustment
      is
      based, including a statement of (a) the consideration received or receivable
      by
      the Company for any additional shares of Common Stock (or Other Securities)
      issued or sold or deemed to have been issued or sold, (b) the number of shares
      of Common Stock (or Other Securities) outstanding or deemed to be outstanding,
      and (c) the Exercise Price and the number of shares of Common Stock to be
      received upon exercise of this Warrant, in effect immediately prior to such
      adjustment or readjustment and as adjusted or readjusted as provided in this
      Warrant. The Company will forthwith mail a copy of each such certificate to
      the
      Holder and any warrant agent of the Company (appointed pursuant to Section
      11
      hereof).

     

    6. Reservation
      of Stock, Etc., Issuable on Exercise of Warrant.
      The
      Company will at all times reserve and keep available, solely for issuance and
      delivery on the exercise of this Warrant, shares of Common Stock (or Other
      Securities) from time to time issuable on the exercise of this
      Warrant.

     

    7. Assignment;
      Exchange of Warrant.
      Subject
      to compliance with applicable securities laws, this Warrant, and the rights
      evidenced hereby, may be transferred by any registered holder hereof (a
“Transferor”) in whole or in part. On the surrender for exchange of this
      Warrant, with the Transferor’s endorsement in the form of Exhibit B attached
      hereto (the “Transferor Endorsement Form”) and together with evidence reasonably
      satisfactory to the Company demonstrating compliance with applicable securities
      laws, which shall include, without limitation, a legal opinion from the
      Transferor’s counsel (at the Transferor’s expense) that such transfer is exempt
      from the registration requirements of applicable securities laws, the Company
      at
      its expense (but with payment by the Transferor of any applicable transfer
      taxes) will issue and deliver to or on the order of the Transferor thereof
      a new
      Warrant of like tenor, in the name of the Transferor and/or the transferee(s)
      specified in such Transferor Endorsement Form (each a “Transferee”), calling in
      the aggregate on the face or faces thereof for the number of shares of Common
      Stock called for on the face or faces of the Warrant so surrendered by the
      Transferor.

     

    8. Replacement
      of Warrant.
      On
      receipt of evidence reasonably satisfactory to the Company of the loss, theft,
      destruction or mutilation of this Warrant and, in the case of any such loss,
      theft or destruction of this Warrant, on delivery of an indemnity agreement
      or
      security reasonably satisfactory in form and amount to the Company or, in the
      case of any such mutilation, on surrender and cancellation of this Warrant,
      the
      Company at its expense will execute and deliver, in lieu thereof, a new Warrant
      of like tenor.

     

    9. Registration
      Rights.
      The
      Holder has been granted certain registration rights by the Company. These
      registration rights are set forth in a Registration Rights Agreement entered
      into by the Company and Holder dated as of the date hereof, as the same may
      be
      amended, modified and/or supplemented from time to time.

     

    10. Maximum
      Exercise.
      Notwithstanding anything herein to the contrary, in no event shall the Holder
      be
      entitled to exercise any portion of this Warrant in excess of that portion
      of

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    this
      Warrant upon exercise of which the sum of (1) the number of shares of Common
      Stock beneficially owned by the Holder and its Affiliates (other than shares
      of
      Common Stock which may be deemed beneficially owned through the ownership of
      the
      unexercised portion of the Warrant or the unexercised or unconverted portion
      of
      any other security of the Holder subject to a limitation on conversion analogous
      to the limitations contained herein) and (2) the number of shares of Common
      Stock issuable upon the exercise of the portion of this Warrant with respect
      to
      which the determination of this proviso is being made, would result in
      beneficial ownership by the Holder and its Affiliates of any amount greater
      than
      4.99% of the then outstanding shares of Common Stock (whether or not, at the
      time of such exercise, the Holder and its Affiliates beneficially own more
      than
      4.99% of the then outstanding shares of Common Stock). As used herein, the
      term
“Affiliate” means any person or entity that, directly or indirectly through one
      or more intermediaries, controls or is controlled by or is under common control
      with a person or entity, as such terms are used in and construed under Rule
      144
      under the Securities Act of 1933, as amended (the “Securities Act”).   For
      purposes of the proviso to the second preceding sentence, beneficial ownership
      shall be determined in accordance with Section 13(d) of the Securities Exchange
      Act of 1934, as amended, and Regulations 13D-G thereunder, except as otherwise
      provided in clause (1) of such proviso.  The limitations set forth herein
      (x) may be waived by the Holder upon provision of no less than sixty-one (61)
      days prior notice to the Company and (y) shall automatically become null and
      void following notice to the Company upon the occurrence and during the
      continuance of an Event of Default (as defined in the Note referred to in the
      Securities Purchase Agreement dated as of the date hereof among the Holder
      and
      the Company (as amended, modified, restated and/or supplemented from time to
      time, the “Purchase Agreement”)).

     

    11. Warrant
      Agent.
      The
      Company may, by written notice to the Holder of the Warrant, appoint an agent
      for the purpose of issuing Common Stock (or Other Securities) on the exercise
      of
      this Warrant pursuant to Section 1, exchanging this Warrant pursuant to Section
      7, and replacing this Warrant pursuant to Section 8, or any of the foregoing,
      and thereafter any such issuance, exchange or replacement, as the case may
      be,
      shall be made at such office by such agent.

     

    12. Transfer
      on the Company’s Books.
      Until
      this Warrant is transferred on the books of the Company, the Company may treat
      the registered holder hereof as the absolute owner hereof for all purposes,
      notwithstanding any notice to the contrary.

     

    13. Notices,
      Etc.
      All
      notices and other communications from the Company to the Holder shall be mailed
      by first class registered or certified mail, postage prepaid, at such address
      as
      may have been furnished to the Company in writing by such Holder or, until
      any
      such Holder furnishes to the Company an address, then to, and at the address
      of,
      the last Holder who has so furnished an address to the Company.

     

    14. Miscellaneous.
      This
      Warrant and any term hereof may be changed, waived, discharged or terminated
      only by an instrument in writing signed by the party against which enforcement
      of such change, waiver, discharge or termination is sought. THIS WARRANT SHALL
      BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
      YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    LAWS.
      ANY
      ACTION BROUGHT CONCERNING THE TRANSACTIONS CONTEMPLATED BY THIS WARRANT SHALL
      BE
      BROUGHT ONLY IN THE STATE COURTS OF NEW YORK OR IN THE FEDERAL COURTS LOCATED
      IN
      THE STATE OF NEW YORK; PROVIDED, HOWEVER, THAT THE HOLDER MAY CHOOSE TO WAIVE
      THIS PROVISION AND BRING AN ACTION OUTSIDE THE STATE OF NEW YORK. The
      individuals executing this Warrant on behalf of the Company agree to submit
      to
      the jurisdiction of such courts and waive trial by jury. The prevailing party
      shall be entitled to recover from the other party its reasonable attorneys’ fees
      and costs. In the event that any provision of this Warrant is invalid or
      unenforceable under any applicable statute or rule of law, then such provision
      shall be deemed inoperative to the extent that it may conflict therewith and
      shall be deemed modified to conform with such statute or rule of law. Any such
      provision which may prove invalid or unenforceable under any law shall not
      affect the validity or enforceability of any other provision of this Warrant.
      The headings in this Warrant are for purposes of reference only, and shall
      not
      limit or otherwise affect any of the terms hereof. The invalidity or
      unenforceability of any provision hereof shall in no way affect the validity
      or
      enforceability of any other provision hereof. The Company acknowledges that
      legal counsel participated in the preparation of this Warrant and, therefore,
      stipulates that the rule of construction that ambiguities are to be resolved
      against the drafting party shall not be applied in the interpretation of this
      Warrant to favor any party against the other party.

     

    [BALANCE
      OF PAGE INTENTIONALLY LEFT BLANK;

     

    SIGNATURE
      PAGE FOLLOWS]

     

    

    
      
        
          

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

     

    IN
      WITNESS WHEREOF, the Company has executed this Warrant as of the date first
      written above. 

    
      	 	
              BLAST
                ENERGY SERVICES, INC.

            
	
              WITNESS:

            	 
	 	
              By:

            	
              /s/
                John O’Keefe

            
	 	
              Name:

            	
              John
                O’Keefe

            
	
              /s/
                John MacDonald

            	
              Title:

            	
              EVP,
                CFO, and Co-CEO

            

    

     

    

    

     

    

    
      
        
          

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    EXHIBIT
      A

     

    FORM
      OF SUBSCRIPTION

     

    (To
      Be
      Signed Only On Exercise Of Warrant)

     

    
      	
              TO:

            	
              Blast
                Energy Services, Inc.

            

    

     

    14550
      Torrey Chase Blvd., Suite 330

    
      	 	
              Houston,
                TX 77014

            

    

     

    Attention: Chief
      Financial Officer

     

    The
      undersigned, pursuant to the provisions set forth in the attached Warrant
      (No.____) (as amended, restated or otherwise modified from time to time, the
      “Warrant”; capitalized terms used but not defined in this notice shall have the
      meanings ascribed thereto in the Warrant), hereby irrevocably elects to purchase
      (check applicable box):

     

    ________ ________
      shares of the common stock covered by such warrant; or 

     

    ________ the
      maximum number of shares of common stock covered by such warrant pursuant to
      the
      cashless exercise procedure set forth in Section 2.

     

    The
      undersigned herewith makes payment of the full Exercise Price for such shares
      at
      the price per share provided for in such Warrant, which is $___________. Such
      payment takes the form of (check applicable box or boxes):

     

    ________ $__________
      in lawful money of the United States; and/or

     

    ________ the
      cancellation of such portion of the attached Warrant as is exercisable for
      a
      total of _______ shares of Common Stock (using a Fair Market Value of $_______
      per share for purposes of this calculation); and/or

     

    ________ the
      cancellation of such number of shares of Common Stock as is necessary, in
      accordance with the formula set forth in Section 2.2, to exercise this Warrant
      with respect to the maximum number of shares of Common Stock purchasable
      pursuant to the cashless exercise procedure set forth in Section 2.

     

    The
      undersigned requests that the certificates for such shares be issued in the
      name
      of, and delivered to ______________________________________________ whose
      address is
      ___________________________________________________________________________.

     

    The
      undersigned represents and warrants that all offers and sales by the undersigned
      of the securities issuable upon exercise of the within Warrant shall be made
      pursuant to registration of the Common Stock under the Securities Act of 1933,
      as amended (the “Securities Act”), or pursuant to an exemption from registration
      under the Securities Act.

    
      	
              Dated:

            	 	 
	 	 	
              (Signature
                must conform to name of holder as specified on the face of the
                Warrant)

            
	 	 	
              Address:

            	 
	 	 	 	 

    

     

    

    
      
        
          

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

     

    EXHIBIT
      B

     

    FORM
      OF TRANSFEROR ENDORSEMENT

     

    (To
      Be
      Signed Only On Transfer Of Warrant)

     

    For
      value
      received, the undersigned hereby sells, assigns, and transfers unto the
      person(s) named below under the heading “Transferees” the right represented by
      the within Warrant to purchase the percentage and number of shares of Common
      Stock of Blast Energy Services, Inc. into which the within Warrant relates
      specified under the headings “Percentage Transferred” and “Number Transferred,”
respectively, opposite the name(s) of such person(s) and appoints each such
      person Attorney to transfer its respective right on the books of Blast Energy
      Services, Inc. with full power of substitution in the premises.

    
      	
              Transferees

            	
              Address

            	
              Percentage
                Transferred

            	
              Number
                

              Transferred

            
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
              Dated:

            	 	 
	 	 	
              (Signature
                must conform to name of holder as specified on the face of the
                Warrant)

            
	 	 	
              Address:

            	 
	 	 	 	 
	 	 	
              SIGNED
                IN THE PRESENCE OF:

            
	 	 	 
	 	 	
              (Name)

            

    

     

    ACCEPTED
      AND AGREED:

     

    [TRANSFEREE]

    ___________________________

    (Name)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]