Document:

Exhibit 4.4

    

      Exhibit
        4.4

      REGISTRATION
        RIGHTS AGREEMENT

       

      This
        Registration Rights Agreement (this “Agreement”) is made and entered into as of
        August 25, 2006, by and between Blast Energy Services, Inc., a California
        corporation (the “Company”), and Laurus Master Fund, Ltd. (the “Purchaser”).

       

      This
        Agreement is made pursuant to the Securities Purchase Agreement, dated as
        of the
        date hereof, by and between the Purchaser and the Company (as amended, restated,
        modified or supplemented from time to time, the “Purchase Agreement”), and
        pursuant to the Warrants referred to therein.

       

      The
        Company and the Purchaser hereby agree as follows: 

       

      1.Definitions.
        Capitalized terms used and not otherwise defined herein that are defined
        in the
        Purchase Agreement shall have the meanings given such terms in the Purchase
        Agreement. As used in this Agreement, the following terms shall have the
        following meanings: 

       

      “Commission”
        means
        the Securities and Exchange Commission.

       

      “Common
        Stock”
        means
        shares of the Company’s common stock, par value $0.001 per share. 

       

      “Effectiveness
        Date”
        means,
        (i) with respect to the Registration Statement required to be filed in
        connection with the Warrants issued on the date hereof, a date no later than
        one
        hundred eighty (180) days following such date and (ii) with respect to each
        additional Registration Statement required to be filed hereunder (if any),
        a
        date no later than thirty (30) days following the applicable Filing
        Date.

       

      “Effectiveness
        Period”
        has the
        meaning set forth in Section 2(a). 

       

      “Exchange
        Act”
        means
        the Securities Exchange Act of 1934, as amended, and any successor
        statute.

       

      “Filing
        Date”
        means,
        with respect to (1) the Registration Statement required to be filed in
        connection with the shares of Common Stock issuable to the Holder upon exercise
        of a Warrant, the date which is sixty (60) days after the issuance of such
        Warrant, and (2) the Registration Statement required to be filed in connection
        with the shares of Common Stock issuable to the Holder as a result of
        adjustments to the Exercise Price made pursuant to Section 4 of the Warrant
        or
        otherwise, thirty (30) days after the occurrence of such event or the date
        of
        the adjustment of the Exercise Price.

       

      “Holder”
        or
“Holders”
        means
        the Purchaser or any of its affiliates or transferees to the extent any of
        them
        hold Registrable Securities, other than those purchasing Registrable Securities
        in a market transaction.

       

      “Indemnified
        Party”
        has the
        meaning set forth in Section 5(c).

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      “Indemnifying
        Party”
        has the
        meaning set forth in Section 5(c).

       

      “Proceeding”
        means an
        action, claim, suit, investigation or proceeding (including, without limitation,
        an investigation or partial proceeding, such as a deposition), whether commenced
        or threatened. 

       

      “Prospectus”
        means
        the prospectus included in a Registration Statement (including, without
        limitation, a prospectus that includes any information previously omitted
        from a
        prospectus filed as part of an effective registration statement in reliance
        upon
        Rule 430A promulgated under the Securities Act), as amended or supplemented
        by
        any prospectus supplement, with respect to the terms of the offering of any
        portion of the Registrable Securities covered by such Registration Statement,
        and all other amendments and supplements to the Prospectus, including
        post-effective amendments, and all material incorporated by reference or
        deemed
        to be incorporated by reference in such Prospectus. 

       

      “Purchase
        Agreement”
        has the
        meaning given to such term in the Preamble hereto.

       

      “Registrable
        Securities”
        means
        the shares of Common Stock issuable upon exercise of the Warrants.

       

      “Registration
        Statement”
        means
        each registration statement required to be filed hereunder, including the
        Prospectus therein, amendments and supplements to such registration statement
        or
        Prospectus, including pre- and post-effective amendments, all exhibits thereto,
        and all material incorporated by reference or deemed to be incorporated by
        reference in such registration statement. 

       

      “Rule
        144”
        means
        Rule 144 promulgated by the Commission pursuant to the Securities Act, as
        such
        Rule may be amended from time to time, or any similar rule or regulation
        hereafter adopted by the Commission having substantially the same effect
        as such
        Rule.

       

      “Rule
        415”
        means
        Rule 415 promulgated by the Commission pursuant to the Securities Act, as
        such
        Rule may be amended from time to time, or any similar rule or regulation
        hereafter adopted by the Commission having substantially the same effect
        as such
        Rule.

       

      “Securities
        Act”
        means
        the Securities Act of 1933, as amended, and any successor statute.

       

      “Trading
        Day”
means
        each day the Trading Market on which the Common Stock is traded is open and
        available to trade securities.

       

      “Trading
        Market”
        means
        any of the NASD Over The Counter Bulletin Board, NASDAQ Capital Market, the
        NASDAQ National Markets System, the American Stock Exchange or the New York
        Stock Exchange.

       

      “Warrants”
        means
        the Common Stock Purchase Warrants issued in connection with the Purchase
        Agreement, whether on the date thereof or thereafter.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      2. Registration.

       

      (a) On
        or
        prior to each Filing Date, the Company shall prepare and file with the
        Commission a Registration Statement covering the Registrable Securities for
        a
        selling stockholder resale offering to be made on a continuous basis pursuant
        to
        Rule 415. Each Registration Statement shall be on Form S-3 (except if the
        Company is not then eligible to register for resale the Registrable Securities
        on Form S-3, in which case such registration shall be on another appropriate
        form in accordance herewith). The Company shall cause each Registration
        Statement to become effective and remain effective as provided herein. The
        Company shall use its best efforts to cause each Registration Statement to
        be
        declared effective under the Securities Act as promptly as possible after
        the
        filing thereof, but in any event no later than the Effectiveness Date. The
        Company shall use its best efforts to keep each Registration Statement
        continuously effective under the Securities Act until the date which is the
        earlier date of when (i) all Registrable Securities covered by such Registration
        Statement have been sold or (ii) all Registrable Securities covered by such
        Registration Statement may be sold immediately without registration under
        the
        Securities Act and without volume restrictions pursuant to Rule 144(k), as
        determined by the counsel to the Company pursuant to a written opinion letter
        to
        such effect, addressed and acceptable to the Company’s transfer agent and the
        affected Holders (each, an “Effectiveness Period”).

         

        (b) If:
          (i)
          the Registration Statement is not filed on or prior to the Filing Date;
          (ii) the
          Registration Statement is not declared effective by the Commission by the
          Effectiveness Date; (iii) after the Registration Statement is filed with
          and
          declared effective by the Commission, the Registration Statement ceases
          to be
          effective (by suspension or otherwise) as to all Registrable Securities
          to which
          it is required to relate at any time prior to the expiration of the
          Effectiveness Period (without being succeeded immediately by an additional
          registration statement filed and declared effective) for a period of time
          which
          shall exceed 30 days in the aggregate per year (defined as a period of
          365 days
          commencing on the date the Registration Statement is declared effective)
          or more
          than 20 consecutive calendar days; or (iv) the Common Stock is not listed
          or
          quoted, or is suspended from trading on any Trading Market for a period
          of three
          (3) consecutive Trading Days (provided the Company shall not have been
          able to
          cure such trading suspension within 30 days of the notice thereof or list
          the
          Common Stock on another Trading Market); (any such failure or breach being
          referred to as an "Event," and for purposes of clause (i) or (ii) the date
          on
          which such Event occurs, or for purposes of clause (iii) the date which
          such 30
          day or 20 consecutive day period (as the case may be) is exceeded, or for
          purposes of clause (iv) the date on which such three (3) Trading Day period
          is
          exceeded, being referred to as "Event Date"), then until the applicable
          Event is
          cured, the Company shall pay to each Holder an amount in cash, as liquidated
          damages and not as a penalty, equal to 1.0% for each thirty (30) day period
          (prorated for partial periods) on a daily basis of the original principal
          amount
          of the Note; provided that, the maximum aggregate amount of liquidated
          damages
          that may be charged to the Company pursuant to this Section 2(b) shall
          not
          exceed 107.5%
          of the
          initial Principal Amount of the Term Note. While such Event continues,
          such
          liquidated damages shall be paid not less often than each thirty (30) days.
          Any
          unpaid liquidated damages as of the date when an Event has been cured by
          the
          Company shall be paid within three (3) days following the date on which
          such
          Event has been cured by the Company.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (c) Within
        three business days of the Effectiveness Date, the Company shall cause its
        counsel to issue a blanket opinion in the form attached hereto as Exhibit
        A to
        the transfer agent stating that the shares are subject to an effective
        registration statement and can be reissued free of restrictive legend upon
        notice of a sale by the Purchaser and confirmation by the Purchaser that
        it has
        complied with the prospectus delivery requirements, provided that the Company
        has not advised the transfer agent orally or in writing that the opinion
        has
        been withdrawn. Copies of the blanket opinion required by this Section 2(c)
        shall be delivered to the Purchaser within the time frame set forth above.
        

       

      3.Registration
        Procedures.
        If and
        whenever the Company is required by the provisions hereof to effect the
        registration of any Registrable Securities under the Securities Act, the
        Company
        will, as expeditiously as possible: 

       

      (a) prepare
        and file with the Commission a Registration Statement with respect to such
        Registrable Securities, respond as promptly as possible to any comments received
        from the Commission, and use its best efforts to cause such Registration
        Statement to become and remain effective for the Effectiveness Period with
        respect thereto, and promptly provide to the Purchaser copies of all filings
        and
        Commission letters of comment relating thereto;

       

      (b) prepare
        and file with the Commission such amendments and supplements to such
        Registration Statement and the Prospectus used in connection therewith as
        may be
        necessary to comply with the provisions of the Securities Act with respect
        to
        the disposition of all Registrable Securities covered by such Registration
        Statement and to keep such Registration Statement effective until the expiration
        of the Effectiveness Period applicable to such Registration
        Statement;

       

      (c) furnish
        to the Purchaser such number of copies of the Registration Statement and
        the
        Prospectus included therein (including each preliminary Prospectus) as the
        Purchaser reasonably may request to facilitate the public sale or disposition
        of
        the Registrable Securities covered by such Registration Statement;

       

      (d) use
        its
        best efforts to register or qualify the Purchaser’s Registrable Securities
        covered by such Registration Statement under the securities or “blue sky” laws
        of such jurisdictions within the United States as the Purchaser may reasonably
        request, provided, however, that the Company shall not for any such purpose
        be
        required to qualify generally to transact business as a foreign corporation
        in
        any jurisdiction where it is not so qualified or to consent to general service
        of process in any such jurisdiction;

       

      (e) list
        the
        Registrable Securities covered by such Registration Statement with any
        securities exchange on which the Common Stock of the Company is then listed;
        

       

      (f) immediately
        notify the Purchaser at any time when a Prospectus relating thereto is required
        to be delivered under the Securities Act, of the happening of any event of
        which
        the Company has knowledge as a result of which the Prospectus contained in
        such
        Registration Statement, as then in effect, includes an untrue statement of
        a
        material fact or omits to state a material fact required to be stated therein
        or
        necessary to make the statements therein not misleading in light of the
        circumstances then existing; and

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (g) make
        available for inspection by the Purchaser and any attorney, accountant or
        other
        agent retained by the Purchaser, all publicly available, non-confidential
        financial and other records, pertinent corporate documents and properties
        of the
        Company, and cause the Company’s officers, directors and employees to supply all
        publicly available, non-confidential information reasonably requested by
        the
        attorney, accountant or agent of the Purchaser.

       

      4.Registration
        Expenses.
        All
        expenses relating to the Company’s compliance with Sections 2 and 3 hereof,
        including, without limitation, all registration and filing fees, printing
        expenses, fees and disbursements of counsel and independent public accountants
        for the Company, fees and expenses (including reasonable and customary counsel
        fees) incurred in connection with complying with state securities or “blue sky”
laws, fees of the NASD, transfer taxes, fees of transfer agents and registrars,
        and fees of, and disbursements incurred by, one counsel for the Holders,
        are
        called “Registration Expenses”. All selling commissions applicable to the sale
        of Registrable Securities, including any fees and disbursements of any special
        counsel to the Holders beyond those included in Registration Expenses, are
        called “Selling Expenses.” The Company shall only be responsible for all
        Registration Expenses.

       

      5.Indemnification.

       

      (a) In
        the
        event of a registration of any Registrable Securities under the Securities
        Act
        pursuant to this Agreement, the Company will indemnify and hold harmless
        each
        Holder, and its officers, directors and each other person, if any, who controls
        such Holder within the meaning of the Securities Act, against any losses,
        claims, damages or liabilities, joint or several, to which such Holder, or
        such
        persons may become subject under the Securities Act or otherwise, insofar
        as
        such losses, claims, damages or liabilities (or actions in respect thereof)
        arise out of or are based upon any untrue statement or alleged untrue statement
        of any material fact contained in any Registration Statement under which
        such
        Registrable Securities were registered under the Securities Act pursuant
        to this
        Agreement, any preliminary Prospectus or final Prospectus contained therein,
        or
        any amendment or supplement thereof, or arise out of or are based upon the
        omission or alleged omission to state therein a material fact required to
        be
        stated therein or necessary to make the statements therein not misleading,
        and
        will reimburse such Holder, and each such person for any reasonable legal
        or
        other expenses incurred by them in connection with investigating or defending
        any such loss, claim, damage, liability or action; provided, however, that
        the
        Company will not be liable in any such case if and to the extent that any
        such
        loss, claim, damage or liability arises out of or is based upon an untrue
        statement or alleged untrue statement or omission or alleged omission so
        made in
        conformity with information furnished by or on behalf of the Purchaser or
        any
        such person in writing specifically for use in any such document.

       

      (b) In
        the
        event of a registration of the Registrable Securities under the Securities
        Act
        pursuant to this Agreement, the Purchaser will indemnify and hold harmless
        the
        Company, and its officers, directors and each other person, if any, who controls
        the Company within the meaning of the Securities Act, against all losses,
        claims, damages or liabilities, joint or several, to which the Company or
        such
        persons may become subject under the Securities Act or otherwise, insofar
        as
        such losses, claims, damages or liabilities (or actions in respect
        thereof)

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      arise
        out
        of or are based upon any untrue statement or alleged untrue statement of
        any
        material fact which was furnished in writing by the Purchaser to the Company
        expressly for use in (and such information is contained in) the Registration
        Statement under which such Registrable Securities were registered under the
        Securities Act pursuant to this Agreement, any preliminary Prospectus or
        final
        Prospectus contained therein, or any amendment or supplement thereof, or
        arise
        out of or are based upon the omission or alleged omission to state therein
        a
        material fact required to be stated therein or necessary to make the statements
        therein not misleading, and will reimburse the Company and each such person
        for
        any reasonable legal or other expenses incurred by them in connection with
        investigating or defending any such loss, claim, damage, liability or action,
        provided, however, that the Purchaser will be liable in any such case if
        and
        only to the extent that any such loss, claim, damage or liability arises
        out of
        or is based upon an untrue statement or alleged untrue statement or omission
        or
        alleged omission so made in conformity with information furnished in writing
        to
        the Company by or on behalf of the Purchaser specifically for use in any
        such
        document. Notwithstanding the provisions of this paragraph, the Purchaser
        shall
        not be required to indemnify any person or entity in excess of the amount
        of the
        aggregate net proceeds received by the Purchaser in respect of Registrable
        Securities in connection with any such registration under the Securities
        Act.

       

      (c) Promptly
        after receipt by a party entitled to claim indemnification hereunder (an
        “Indemnified Party”) of notice of the commencement of any action, such
        Indemnified Party shall, if a claim for indemnification in respect thereof
        is to
        be made against a party hereto obligated to indemnify such Indemnified Party
        (an
“Indemnifying Party”), notify the Indemnifying Party in writing thereof, but the
        omission so to notify the Indemnifying Party shall not relieve it from any
        liability which it may have to such Indemnified Party other than under this
        Section 5(c) and shall only relieve it from any liability which it may have
        to
        such Indemnified Party under this Section 5(c) if and to the extent the
        Indemnifying Party is prejudiced by such omission. In case any such action
        shall
        be brought against any Indemnified Party and it shall notify the Indemnifying
        Party of the commencement thereof, the Indemnifying Party shall be entitled
        to
        participate in and, to the extent it shall wish, to assume and undertake
        the
        defense thereof with counsel satisfactory to such Indemnified Party, and,
        after
        notice from the Indemnifying Party to such Indemnified Party of its election
        so
        to assume and undertake the defense thereof, the Indemnifying Party shall
        not be
        liable to such Indemnified Party under this Section 5(c) for any legal expenses
        subsequently incurred by such Indemnified Party in connection with the defense
        thereof; if the Indemnified Party retains its own counsel, then the Indemnified
        Party shall pay all fees, costs and expenses of such counsel, provided, however,
        that, if the defendants in any such action include both the Indemnified Party
        and the Indemnifying Party and the Indemnified Party shall have reasonably
        concluded that there may be reasonable defenses available to it which are
        different from or additional to those available to the Indemnifying Party
        or if
        the interests of the Indemnified Party reasonably may be deemed to conflict
        with
        the interests of the Indemnifying Party, the Indemnified Party shall have
        the
        right to select one separate counsel and to assume such legal defenses and
        otherwise to participate in the defense of such action, with the reasonable
        expenses and fees of such separate counsel and other expenses related to
        such
        participation to be reimbursed by the Indemnifying Party as incurred.

       

      (d) In
        order
        to provide for just and equitable contribution in the event of joint liability
        under the Securities Act in any case in which either (i) the Purchaser, or
        any
        officer,

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      director
        or controlling person of the Purchaser, makes a claim for indemnification
        pursuant to this Section 5 but it is judicially determined (by the entry
        of a
        final judgment or decree by a court of competent jurisdiction and the expiration
        of time to appeal or the denial of the last right of appeal) that such
        indemnification may not be enforced in such case notwithstanding the fact
        that
        this Section 5 provides for indemnification in such case, or (ii) contribution
        under the Securities Act may be required on the part of the Purchaser or
        such
        officer, director or controlling person of the Purchaser in circumstances
        for
        which indemnification is provided under this Section 5; then, and in each
        such
        case, the Company and the Purchaser will contribute to the aggregate losses,
        claims, damages or liabilities to which they may be subject (after contribution
        from others) in such proportion so that the Purchaser is responsible only
        for
        the portion represented by the percentage that the public offering price
        of its
        securities offered by the Registration Statement bears to the public offering
        price of all securities offered by such Registration Statement, provided,
        however, that, in any such case, (A) the Purchaser will not be required to
        contribute any amount in excess of the public offering price of all such
        securities offered by it pursuant to such Registration Statement; and (B)
        no
        person or entity guilty of fraudulent misrepresentation (within the meaning
        of
        Section 10(f) of the Act) will be entitled to contribution from any person
        or
        entity who was not guilty of such fraudulent misrepresentation.

       

      6.Representations
        and Warranties.

       

      (a) The
        Common Stock is not registered pursuant to Section 12(b) or 12(g) of the
        Exchange Act but the Company files its reports pursuant to Section 15(d)
        under
        the Exchange Act and, except with respect to certain matters which the Company
        has disclosed to the Purchaser on Schedule 4.21 to the Purchase Agreement,
        the
        Company has timely filed all proxy statements, reports, schedules, forms,
        statements and other documents required to be filed by it under the Exchange
        Act. The Company has filed (i) its Annual Report on Form 10-KSB for its fiscal
        year ended December 31, 2005 and (ii) its Quarterly Report on Form 10-QSB
        for
        the fiscal quarters ended March 31, 2006 and June 30, 2006 (collectively,
        the
“SEC Reports”). Each SEC Report was, at the time of its filing, in substantial
        compliance with the requirements of its respective form and none of the SEC
        Reports, nor the financial statements (and the notes thereto) included in
        the
        SEC Reports, as of their respective filing dates, contained any untrue statement
        of a material fact or omitted to state a material fact required to be stated
        therein or necessary to make the statements therein, in light of the
        circumstances under which they were made, not misleading. The financial
        statements of the Company included in the SEC Reports comply as to form in
        all
        material respects with applicable accounting requirements and the published
        rules and regulations of the Commission or other applicable rules and
        regulations with respect thereto. Such financial statements have been prepared
        in accordance with generally accepted accounting principles (“GAAP”) applied on
        a consistent basis during the periods involved (except (i) as may be otherwise
        indicated in such financial statements or the notes thereto or (ii) in the
        case
        of unaudited interim statements, to the extent they may not include footnotes
        or
        may be condensed) and fairly present in all material respects the financial
        condition, the results of operations and the cash flows of the Company and
        its
        subsidiaries, on a consolidated basis, as of, and for, the periods presented
        in
        each such SEC Report.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (b) The
        Common Stock is listed or quoted, as applicable, for trading on the NASDAQ
        Over
        The Counter Bulletin Board and satisfies all requirements for the continuation
        of such listing or quotation, as applicable, and the Company shall do all
        things
        necessary for the continuation of such listing or quotation, as applicable.
        The
        Company has not received any notice that its Common Stock will be delisted
        from
        or no longer be quoted on, as applicable, the NASDAQ Over The Counter Bulletin
        Board (except for prior notices which have been fully remedied) or that the
        Common Stock does not meet all requirements for the continuation of such
        listing
        or quotation, as applicable.

       

      (c) Neither
        the Company, nor any of its affiliates, nor any person acting on its or their
        behalf, has directly or indirectly made any offers or sales of any security
        or
        solicited any offers to buy any security under circumstances that would cause
        the offering of the Securities pursuant to the Purchase Agreement to be
        integrated with prior offerings by the Company for purposes of the Securities
        Act which would prevent the Company from selling the Common Stock pursuant
        to
        Rule 506 under the Securities Act, or any applicable exchange-related
        stockholder approval provisions, nor will the Company or any of its affiliates
        or subsidiaries take any action or steps that would cause the offering of
        the
        Common Stock to be integrated with other offerings (other than such concurrent
        offering to the Purchaser).

       

      (d) The
        Warrants and the shares of Common Stock that the Purchaser may acquire pursuant
        to the Warrants are all restricted securities under the Securities Act as
        of the
        date of this Agreement. The Company will not issue any stop transfer order
        or
        other order impeding the sale and delivery of any of the Registrable Securities
        at such time as such Registrable Securities are registered for public sale
        or an
        exemption from registration is available, except as required by federal or
        state
        securities laws.

       

      (e) The
        Company understands the nature of the Registrable Securities issuable upon
        the
        exercise of each Warrant and recognizes that the issuance of such Registrable
        Securities may have a potential dilutive effect. The Company specifically
        acknowledges that its obligation to issue the Registrable Securities is binding
        upon the Company and enforceable regardless of the dilution such issuance
        may
        have on the ownership interests of other shareholders of the
        Company.

       

      (f) Except
        for agreements made in the ordinary course of business, there is no agreement
        that has not been filed with the Commission as an exhibit to a registration
        statement or to a form required to be filed by the Company under the Exchange
        Act, the breach of which could reasonably be expected to have a material
        and
        adverse effect on the Company and its subsidiaries, or would prohibit or
        otherwise interfere with the ability of the Company to enter into and perform
        any of its obligations under this Agreement in any material
        respect.

       

      (g) The
        Company will at all times have authorized and reserved a sufficient number
        of
        shares of Common Stock for the full exercise of the Warrants.

       

      (h) The
        Company shall provide written notice to each Holder of (i) the occurrence
        of
        each Discontinuation Event (as defined below) and (ii) the declaration
        of

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      effectiveness
        by the SEC of each Registration Statement required to be filed hereunder,
        in
        each case within one (1) business day of the date of each such occurrence
        and/or
        declaration.

       

      7.Miscellaneous.

       

      (a) Remedies.
        In the
        event of a breach by the Company or by a Holder of any of their respective
        obligations under this Agreement, each Holder or the Company, as the case may
        be, in addition to being entitled to exercise all rights granted by law and
        under this Agreement, including recovery of damages, will be entitled to
        specific performance of its rights under this Agreement.

       

      (b) No
        Piggyback on Registrations.
        Except
        as and to the extent set forth on Schedule 7(b) hereto, neither the Company
        nor
        any of its security holders (other than the Holders in such capacity pursuant
        hereto) may include securities of the Company in any Registration Statement
        other than the Registrable Securities, and the Company shall not after the
        date
        hereof enter into any agreement providing any such right for inclusion of
        shares
        in the Registration Statement to any of its security holders. Except as and
        to
        the extent specified in Schedule 7(b) hereto, the Company has not previously
        entered into any agreement granting any registration rights with respect
        to any
        of its securities to any person or entity that have not been fully satisfied.
        

       

      (c) Compliance.
        Each
        Holder covenants and agrees that it will comply with the prospectus delivery
        requirements of the Securities Act as applicable to it in connection with
        sales
        of Registrable Securities pursuant to any Registration Statement. 

       

      (d) Discontinued
        Disposition.
        Each
        Holder agrees by its acquisition of such Registrable Securities that, upon
        receipt of a notice from the Company of the occurrence of a Discontinuation
        Event (as defined below), such Holder will forthwith discontinue disposition
        of
        such Registrable Securities under the applicable Registration Statement until
        such Holder’s receipt of the copies of the supplemented Prospectus and/or
        amended Registration Statement or until it is advised in writing (the “Advice”)
        by the Company that the use of the applicable Prospectus may be resumed,
        and, in
        either case, has received copies of any additional or supplemental filings
        that
        are incorporated or deemed to be incorporated by reference in such Prospectus
        or
        Registration Statement. The Company may provide appropriate stop orders to
        enforce the provisions of this paragraph. For purposes of this Agreement,
        a
“Discontinuation Event” shall mean (i) when the Commission notifies the Company
        whether there will be a “review” of such Registration Statement and whenever the
        Commission comments in writing on such Registration Statement (the Company
        shall
        provide true and complete copies thereof and all written responses thereto
        to
        each of the Holders); (ii) any request by the Commission or any other Federal
        or
        state governmental authority for amendments or supplements to such Registration
        Statement or Prospectus or for additional information; (iii) the issuance
        by the
        Commission of any stop order suspending the effectiveness of such Registration
        Statement covering any or all of the Registrable Securities or the initiation
        of
        any Proceedings for that purpose; (iv) the receipt by the Company of any
        notification with respect to the suspension of the qualification or exemption
        from qualification of any of the Registrable Securities for sale in
        any

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      jurisdiction,
        or the initiation or threatening of any Proceeding for such purpose; and/or
        (v)
        the occurrence of any event or passage of time that makes the financial
        statements included in such Registration Statement ineligible for inclusion
        therein or any statement made in such Registration Statement or Prospectus
        or
        any document incorporated or deemed to be incorporated therein by reference
        untrue in any material respect or that requires any revisions to such
        Registration Statement, Prospectus or other documents so that, in the case
        of
        such Registration Statement or Prospectus, as the case may be, it will not
        contain any untrue statement of a material fact or omit to state any material
        fact required to be stated therein or necessary to make the statements therein,
        in light of the circumstances under which they were made, not
        misleading.

       

      (e) Piggy-Back
        Registrations.
        If at
        any time during any Effectiveness Period there is not an effective Registration
        Statement covering all of the Registrable Securities required to be covered
        during such Effectiveness Period and the Company shall determine to prepare
        and
        file with the Commission a registration statement relating to an offering
        for
        its own account or the account of others under the Securities Act of any
        of its
        equity securities, other than on Form S-4 or Form S-8 (each as promulgated
        under
        the Securities Act) or their then equivalents relating to equity securities
        to
        be issued solely in connection with any acquisition of any entity or business
        or
        equity securities issuable in connection with stock option or other employee
        benefit plans, then the Company shall send to each Holder written notice
        of such
        determination and, if within fifteen (15) days after receipt of such notice,
        any
        such Holder shall so request in writing, the Company shall include in such
        registration statement all or any part of such Registrable Securities such
        Holder requests to be registered, to the extent the Company may do so without
        violating registration rights of others which exist as of the date of this
        Agreement, subject to customary underwriter cutbacks applicable to all holders
        of registration rights and subject to obtaining any required consent of any
        selling stockholder(s) to such inclusion under such registration
        statement.

       

      (f) Amendments
        and Waivers.
        The
        provisions of this Agreement, including the provisions of this sentence,
        may not
        be amended, modified or supplemented, and waivers or consents to departures
        from
        the provisions hereof may not be given, unless the same shall be in writing
        and
        signed by the Company and the Holders of the then outstanding Registrable
        Securities. Notwithstanding the foregoing, a waiver or consent to depart
        from
        the provisions hereof with respect to a matter that relates exclusively to
        the
        rights of certain Holders and that does not directly or indirectly affect
        the
        rights of other Holders may be given by Holders of at least a majority of
        the
        Registrable Securities to which such waiver or consent relates; provided,
        however, that the provisions of this sentence may not be amended, modified,
        or
        supplemented except in accordance with the provisions of the immediately
        preceding sentence.

       

      (g) Notices.
        Any
        notice or request hereunder may be given to the Company or the Purchaser
        at the
        respective addresses set forth below or as may hereafter be specified in
        a
        notice designated as a change of address under this Section 7(g). Any notice
        or
        request hereunder shall be given by registered or certified mail, return
        receipt
        requested, hand delivery, overnight mail, Federal Express or other national
        overnight next day carrier (collectively, “Courier”) or telecopy (confirmed by
        mail). Notices and requests shall be, in the case of those by hand delivery,
        deemed to have been given when delivered to any party to whom it
        is

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      addressed,
        in the case of those by mail or overnight mail, deemed to have been given
        three
        (3) business days after the date when deposited in the mail or with the
        overnight mail carrier, in the case of a Courier, the next business day
        following timely delivery of the package with the Courier, and, in the case
        of a
        telecopy, when confirmed. The address for such notices and communications
        shall
        be as follows:

       

      

         

        
          	 	
                  If
                    to the Company:

                	
                  Blast
                    Energy Services, Inc.

                

        

        
          	 	 	
                  14550
                    Torrey Chase Boulevard

                

        

        
          	 	 	
                  Suite
                    330

                

        

        
          	 	 	
                  Houston,
                    TX 77014

                

        

        
          	 	
                   

                	
                  
                    Attention: 
                      Chief Financial
                      Officer

                  

                

        

        
          	 	
                   

                	
                  
                    Facsimile: 
                      281-453-2899

                  

                

        

         

             with
          a copy
          to:

      

      Adams
        and
        Reese LLP

      4400
        One
        Houston Center

      1221
        McKinney

      Houston,
        Texas 77010

      Facsimile:
        (713) 308-4042

      Attention:
        Michael T. Larkin

       

      
        	 	
                If
                  to a Purchaser:

              	
                To
                  the address set forth under such Purchaser name on the signature
                  pages
                  hereto.

              

      

       

      If
        to
        any other Person who is 

      
        	 	
                then
                  the registered Holder:

              	
                To
                  the address of such Holder as it appears in the stock transfer
                  books of
                  the Company

              

      

       

      or
        such
        other address as may be designated in writing hereafter in accordance with
        this
        Section 7(g) by such Person.

       

      (h) Successors
        and Assigns. This Agreement shall inure to the benefit of and be binding
        upon
        the successors and permitted assigns of each of the parties and shall inure
        to
        the benefit of each Holder. The Company may not assign its rights or obligations
        hereunder without the prior written consent of each Holder. Each Holder may
        assign its respective rights hereunder in the manner and to the persons and
        entities as permitted under the Purchase Agreement. 

       

      (i) Execution
        and Counterparts. This Agreement may be executed in any number of counterparts,
        each of which when so executed shall be deemed to be an original and, all
        of
        which taken together shall constitute one and the same agreement. In the
        event
        that any signature is delivered by facsimile transmission, such signature
        shall
        create a valid binding obligation of the party executing (or on whose behalf
        such signature is executed) the same with the same force and effect as if
        such
        facsimile signature were the original thereof.

       

      (j) Governing
        Law, Jurisdiction and Waiver of Jury Trial. THIS AGREEMENT SHALL BE GOVERNED
        BY
        AND CONSTRUED AND ENFORCED IN

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      ACCORDANCE
        WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND
        PERFORMED IN SUCH STATE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.
        The
        Company hereby consents and agrees that the state or federal courts located
        in
        the County of New York, State of New York shall have exclusion jurisdiction
        to
        hear and determine any Proceeding between the Company, on the one hand, and
        the
        Purchaser, on the other hand, pertaining to this Agreement or to any matter
        arising out of or related to this Agreement; provided, that the Purchaser
        and
        the Company acknowledge that any appeals from those courts may have to be
        heard
        by a court located outside of the County of New York, State of New York,
        and
        further provided, that nothing in this Agreement shall be deemed or operate
        to
        preclude the Purchaser from bringing a Proceeding in any other jurisdiction
        to
        collect the obligations, to realize on the Collateral (as defined in the
        Master
        Security Agreement) or any other security for the obligations, or to enforce
        a
        judgment or other court order in favor of the Purchaser. The Company expressly
        submits and consents in advance to such jurisdiction in any Proceeding commenced
        in any such court, and the Company hereby waives any objection which it may
        have
        based upon lack of personal jurisdiction, improper venue or forum non
        conveniens. The Company hereby waives personal service of the summons, complaint
        and other process issued in any such Proceeding and agrees that service of
        such
        summons, complaint and other process may be made by registered or certified
        mail
        addressed to the Company at the address set forth in Section 7(g) and that
        service so made shall be deemed completed upon the earlier of the Company’s
        actual receipt thereof or three (3) days after deposit in the U.S. mails,
        proper
        postage prepaid. The parties hereto desire that their disputes be resolved
        by a
        judge applying such applicable laws. Therefore, to achieve the best combination
        of the benefits of the judicial system and of arbitration, the parties hereto
        waive all rights to trial by jury in any Proceeding brought to resolve any
        dispute, whether arising in contract, tort, or otherwise between the Purchaser
        and/or the Company arising out of, connected with, related or incidental
        to the
        relationship established between then in connection with this Agreement.
        If
        either party hereto shall commence a Proceeding to enforce any provisions
        of
        this Agreement, the Purchase Agreement or any other Related Agreement, then
        the
        prevailing party in such Proceeding shall be reimbursed by the other party
        for
        its reasonable attorneys’ fees and other costs and expenses incurred with the
        investigation, preparation and prosecution of such Proceeding.

       

      (k) Cumulative
        Remedies. The remedies provided herein are cumulative and not exclusive of
        any
        remedies provided by law.

       

      (l) Severability.
        If any term, provision, covenant or restriction of this Agreement is held
        by a
        court of competent jurisdiction to be invalid, illegal, void or unenforceable,
        the remainder of the terms, provisions, covenants and restrictions set forth
        herein shall remain in full force and effect and shall in no way be affected,
        impaired or invalidated, and the parties hereto shall use their reasonable
        efforts to find and employ an alternative means to achieve the same or
        substantially the same result as that contemplated by such term, provision,
        covenant or restriction. It is hereby stipulated and declared to be the
        intention of the parties that they would have executed the remaining terms,
        provisions, covenants and restrictions without including any of such that
        may be
        hereafter declared invalid, illegal, void or unenforceable.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (m) Headings.
        The headings in this Agreement are for convenience of reference only and
        shall
        not limit or otherwise affect the meaning hereof.

       

      [Balance
        of page intentionally left blank; signature page follows]

       

      

      
        
          
            

          

           

        

        
           

          
            

          

        

        
           

          
            

          

        

      

       

      IN
        WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
        as
        of the date first written above.

       

      BLAST
        ENERGY SERVICES, INC.

       

      By:
        /s/
        John O’Keefe 

      Name:
        John O’Keefe

      Title:
        EVP, CFO, & Co-CEO

      

      LAURUS
        MASTER FUND, LTD. 

       

      By:
        /s/
        Laurus Master Fund LTD. 

      Name:____________________________

      Title:_____________________________

       

      

      Address
        for Notices:

       

      825
        Third
        Avenue, 14th Floor

      New
        York,
        New York 10022

      Attention:
        David Grin

      Facsimile:
        212-541-4434

       

      

       

      

      
        
          
            

          

           

        

        
           

          
            

          

        

        
           

          
            

          

        

      

       

      EXHIBIT
        A

       

      ____________,
        200___

       

      [Continental
        Stock Transfer

       

      &
        Trust Company

       

      Two
        Broadway

       

      New
        York,
        New York 10004

       

      Attn:
        William Seegraber]

       

      Re: Blast
        Energy Services, Inc. Registration Statement on Form [S-3]

       

      Ladies
        and Gentlemen:

       

      As
        counsel to Blast Energy Services, Inc., a California corporation (the
“Company”), we have been requested to render our opinion to you in connection
        with the resale by the individuals or entitles listed on Schedule
        A
        attached
        hereto (the “Selling Stockholders”), of an aggregate of __________ shares (the
“Shares”) of the Company’s Common Stock.

       

      A
        Registration Statement on Form [S-3] under the Securities Act of 1933, as
        amended (the “Act”), with respect to the resale of the Shares was declared
        effective by the Securities and Exchange Commission on [date]. Enclosed is
        the
        Prospectus dated [date]. We understand that the Shares are to be offered
        and
        sold in the manner described in the Prospectus.

       

      Based
        upon the foregoing, upon request by the Selling Stockholders at any time
        while
        the registration statement remains effective, it is our opinion that the
        Shares
        have been registered for resale under the Act and new certificates evidencing
        the Shares upon their transfer or re-registration by the Selling Stockholders
        may be issued without restrictive legend. We will advise you if the registration
        statement is not available or effective at any point in the future.

       

      Very
        truly yours,

       

      [Company
        counsel]

       

      

       

      

      
        
          
            

          

           

        

        
           

          
            

          

        

        
           

          
            

          

        

      

       

      Schedule
        A to Exhibit A

      
        	
                Selling
                  Stockholder

              	
                R/N/O

              	
                Shares

                Being
                  Offered

              
	 	 	 
	 	 	 
	 	 	 
	 	 	 

      

       

      

      
        
          
            

          

           

        

        
           

          
            

          

        

        
           

          
            

          

        

      

       

      SCHEDULE
        7(b)

       Blast
        Energy Services, Inc. 

      Outstanding
        Share issuances with registration rights:

      
        	 	 	 	 
	 	
                Common

              	
                Warrants

              	
                Total

              
	
                Alberta
                  Energy Partners

              	
                3,000,000
                  

              	
                0
                  

              	
                3,000,000
                  

              
	
                David
                  Adams

              	
                105,000
                  

              	
                0
                  

              	
                105,000
                  

              
	
                Berg
                  McAfee Companies

              	
                82,074
                  

              	
                0
                  

              	
                82,074
                  

              
	
                BlausenLisi
                  L.P.

              	
                35,000
                  

              	
                0
                  

              	
                35,000
                  

              
	
                John
                  Block

              	
                26,250
                  

              	
                0
                  

              	
                26,250
                  

              
	
                Michael
                  Brown Trust

              	
                116,923
                  

              	
                0
                  

              	
                116,923
                  

              
	
                Tess
                  Brown Trust

              	
                38,974
                  

              	
                0
                  

              	
                38,974
                  

              
	
                Clayton
                  McEvoy P.C.

              	
                30,000
                  

              	
                0
                  

              	
                30,000
                  

              
	
                Friedland
                  Corporate Services LLC

              	
                135,000
                  

              	
                0
                  

              	
                135,000
                  

              
	
                Roger
                  P. Herbert

              	
                12,500
                  

              	
                0
                  

              	
                12,500
                  

              
	
                Scott
                  Johnson

              	
                100,000
                  

              	
                50,000
                  

              	
                150,000
                  

              
	
                Linden
                  Growth Partners

              	
                1,777,950
                  

              	
                400,000
                  

              	
                2,177,950
                  

              
	
                John
                  MacDonald

              	
                31,250
                  

              	
                0
                  

              	
                31,250
                  

              
	
                Eric
                  McAfee

              	
                82,074
                  

              	
                0
                  

              	
                82,074
                  

              
	
                McGuinness
                  Ltd Partnership

              	
                100,000
                  

              	
                0
                  

              	
                100,000
                  

              
	
                Steve
                  Nowell

              	
                43,750
                  

              	
                0
                  

              	
                43,750
                  

              
	
                O'Keefe
                  Capital Partners

              	
                105,000
                  

              	
                0
                  

              	
                105,000
                  

              
	
                Joe
                  Penbera

              	
                55,000
                  

              	
                0
                  

              	
                55,000
                  

              
	
                Prima
                  Capital Group

              	
                60,000
                  

              	
                0
                  

              	
                60,000
                  

              
	
                ProFab
                  Equipment

              	
                33,333
                  

              	
                0
                  

              	
                33,333
                  

              
	
                Fred
                  Ruiz

              	
                38,750
                  

              	
                0
                  

              	
                38,750
                  

              
	
                Joe
                  Sofia

              	
                0
                  

              	
                10,000
                  

              	
                10,000
                  

              
	
                Charles
                  Steinberger

              	
                900,000
                  

              	
                0
                  

              	
                900,000
                  

              
	
                Colt
                  Stewart

              	
                0
                  

              	
                20,000
                  

              	
                20,000
                  

              
	
                Andrew
                  Wilson

              	
                107,500
                  

              	
                0
                  

              	
                107,500
                  

              
	
                Jim
                  Woodward

              	
                38,750
                  

              	
                0
                  

              	
                38,750
                  

              
	
                Frederick
                  Tripp Trust

              	
                38,974
                  

              	
                 

              	
                38,974
                  

              
	 	
                7,094,052
                  

              	
                480,000
                  

              	
                7,574,052
                  

              
	 	 	 	 
	
                Shares
                  issued to Rig Sellers:

              	 	 	 
	
                Glenn
                  A. Foster

              	
                1,631,250
                  

              	
                562,500
                  

              	
                2,193,750
                  

              
	
                Richard
                  Thornton

              	
                2,051,250

              	
                362,500
                  

              	
                2,413,750
                  

              
	
                Herman
                  Livesay

              	
                1,725,000
                  

              	
                250,000
                  

              	
                1,975,000
                  

              
	
                Thornton
                  Family Irrevocable Trust

              	
                0
                  

              	
                0
                  

              	
                0
                  

              
	
                Thornton
                  Business Security Trust

              	
                11,092,500

              	
                3,825,000
                  

              	
                14,917,500
                  

              
	
                Second
                  Bridge LLC

              	
                900,000
                  

              	
                0
                  

              	
                900,000
                  

              
	 	 	 	
                22,400,000Exhibit 4.5

    Exhibit
      4.5

     

    WARRANT
      AGREEMENT

    

    THIS
      WARRANT AGREEMENT (this "Agreement") is made and entered into as of August,
      _____, 2006 between Blast
      Energy Services Inc, a
      California corporation (the "Company") and
      ___________________. (“Holder”).

     

    R
      E C I T A L S

    

    WHEREAS,
      the Company proposes to issue to Holder _______ warrants (the "Warrants"),
      each
      such Warrant entitling the holder thereof to purchase one share of Common Stock,
      no par, of the Company on the terms and conditions as set forth herein (the
      "Shares" or the "Common Stock"); and 

    

    WHEREAS,
      the Warrants which are the subject of this Agreement, will be issued by the
      Company to the Holder as part of consideration payable to Holder in connection
      with equity issued by the Company.

    

    NOW,
      THEREFORE, in consideration of the premises and the mutual agreements herein
      set
      forth, the parties hereto agree as follows:

     

    A
      G R E E M E N T

    

    1. Warrant
      Certificates.
      The
      warrant certificates to be delivered pursuant to this Agreement (the "Warrant
      Certificates") shall be in the form set forth in Exhibit A, attached hereto
      and
      made a part hereof, with such appropriate insertions, omissions, substitutions
      and other variations as are required or permitted by this Warrant
      Agreement.

    

    2. Right
      to Exercise Warrants.
      Each
      Warrant may be exercised from the date of this Agreement until 11:59 P.M.
      (Houston time) on the date that is two years after the date of this Agreement
      (the "Expiration Date"). Each Warrant not exercised on or before the Expiration
      Date shall expire.

    

    Each
      Warrant shall entitle its holder to purchase from the Company one share of
      Common Stock at an exercise price of $0.20 per share up to two years after
      the
      date of this agreement, subject to adjustment as set forth below ("Exercise
      Price").

    

    The
      Company shall not be required to issue fractional shares of capital stock upon
      the exercise of this Warrant or to deliver Warrant Certificates which evidence
      fractional shares of capital stock. In the event that a fraction of an
      Exercisable Share would, except for the provisions of this paragraph 2, be
      issuable upon the exercise of this Warrant, the Company shall pay to the Holder
      exercising the Warrant an amount in cash equal to such fraction multiplied
      by
      the current market value of the Exercise Share. For purposes of this paragraph
      2, the current market value shall be determined as follows:

    

    (a) if
      the
      Exercise Shares are traded in the over-the-counter market and not on any
      national securities exchange and not in the NASDAQ Reporting System, the average
      of the mean between the last bid and asked prices per share, as reported by
      the
      National Quotation Bureau, Inc., or an equivalent generally accepted reporting
      service, for the last business day prior to the date on which this Warrant
      is
      exercised, or, if not so reported, the average of the closing bid and asked
      prices for an Exercise Share as furnished to the Company by any member of the
      National Association of Securities Dealers, Inc., selected by the Company for
      that purpose.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b) if
      the
      Exercise Shares are listed or traded on a national securities exchange or in
      the
      NASDAQ Reporting System, the closing price on the principal national securities
      exchange on which they are so listed or traded or in the NASDAQ Reporting
      System, as the case may be, on the last business day prior to the date of the
      exercise of this Warrant. The closing price referred to in this Clause (b)
      shall
      be the last reported sales price or, in case no such reported sale takes place
      on such day, the average of the reported closing bid and asked prices, in either
      case on the national securities exchange on which the Exercise Shares are then
      listed on in the NASDAQ Reporting System; or

    

    (c) if
      no
      such closing price or closing bid and asked prices are available, as determined
      in any reasonable manner as may be prescribed by the Board of Directors of
      the
      Company.

    

    3. Mutilated
      or Missing Warrant Certificates.
      In case
      any of the Warrant Certificates shall be mutilated, lost, stolen or destroyed
      prior to its expiration date, the Company shall issue and deliver, in exchange
      and substitution for and upon cancellation of the mutilated Warrant Certificate,
      or in lieu of and in substitution for the Warrant Certificate lost, stolen
      or
      destroyed, a new Warrant Certificate of like tenor and representing an
      equivalent right or interest.

    

    4. Reservation
      of Shares.
      The
      Company will at all times reserve and keep available, free from preemptive
      rights, out of the aggregate of its authorized but unissued Shares or its
      authorized and issued Shares held in its treasury for the purpose of enabling
      it
      to satisfy its obligation to issue Shares upon exercise of Warrants, the full
      number of Shares deliverable upon the exercise of all outstanding
      Warrants.

    

    The
      Company covenants that all Shares which may be issued upon exercise of Warrants
      will be validly issued, fully paid and non-assessable outstanding Shares of
      the
      Company.

    

    5. Rights
      of Holder.
      The
      Holder shall not, by virtue of anything contained in this Warrant Agreement
      or
      otherwise, prior
      to
      exercise of this Warrant, be entitled to any right whatsoever, either in law
      or
      equity, of a stockholder of the Company, including without limitation, the
      right
      to receive dividends or to vote or to consent or to receive notice as a
      shareholder in respect of the meetings of shareholders or the election of
      directors of the Company of any other matter.

    

    6. Investment
      Intent.
      Holder
      represents and warrants to the Company that Holder is acquiring the Warrants
      for
      investment and with no present intention of distributing or reselling any of
      the
      Warrants. The Holder confirms and agrees that it is an “accredited investor” as
      defined pursuant to the rules and regulations promulgated under the Securities
      Act of 1933, as amended (the “Securities Act”). The Holder confirms and
      acknowledges to the Company that the representations and warranties contained
      in
      the Subscription Agreement entered into by the Holder and the Company as of
      the
      date hereof are true and correct.

    

    7. Certificates
      to Bear Language.
      The
      Warrants and the certificate or certificates therefore shall bear the following
      legend by which each holder shall be bound:

    

    "THE
      SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE
      TRANS-FERRED WITHOUT AN EFFECTIVE REGIS-TRATION THEREOF UNDER SUCH ACT OR
      PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL, REASON-ABLY SATISFACTORY TO
      THE
      COR-PORATION AND ITS COUN-SEL, THAT SUCH REGISTRATION IS NOT
      REQUIRED."

    

    The
      Shares and the certificate or certificates evidencing any such Shares shall
      bear
      the following legend:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    "THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933. THE SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE
      OF SUCH REGISTRATION OR AN OPINION OF COUNSEL THAT AN EXEMPTION FROM
      REGISTRATION UNDER SUCH ACT IS AVAILABLE."

    

    Certificates
      for Warrants without such legend shall be issued if such warrants or shares
      are
      sold pursuant to an effective registration statement under the Securities Act
      of
      1933 (the “Act”) or if the Company has received an opinion from counsel
      reasonably satisfactory to counsel for the Company, that such legend is no
      longer required under the Act.

    

    8. Registration
      Rights.
      The
      Company is obligated to register the shares of Common Stock underlying the
      Warrants in any subsequent registration statement filed by the Company with
      the
      Securities and Exchange Commission, so that holders of such Common Stock shall
      be entitled to sell the same simultaneously with and upon the terms and
      conditions as the securities sold for the account of the Company are being
      sold
      pursuant to any such registration statement, subject to reasonable and customary
      lock-up provisions as may be proposed by the underwriter of said registration
      statement and agreed to by the investors (the "Piggyback Registration
      Right").

    

    9. Adjustment
      of Number of Shares and Class of Capital Stock Purchasable.
      The
      Number of Shares and Class of Capital Stock purchasable under this Warrant
      Agreement are subject to adjustment from time to time as set forth in this
      Section.

    

    (a) Adjustment
      for Change in Capital Stock.
      If the
      Company:

    

    
      	 	
              (i)

            	
              pays
                a dividend or makes a distribution on its Common Stock, in each case,
                in
                shares of its Common Stock;

            

    

    

    
      	 	
              (ii)

            	
              subdivides
                its outstanding shares of Common Stock into a greater number of
                shares;

            

    

    

    
      	 	
              (iii)

            	
              combines
                its outstanding shares of Common Stock into a smaller number of
                shares;

            

    

    

    
      	 	
              (iv)

            	
              makes
                a distribution on its Common Stock in shares of its capital stock
                other
                than Common Stock; or

            

    

    

    
      	 	
              (v)

            	
              issues
                by reclassification of its shares of Common Stock any shares of its
                capital stock;

            

    

    

    then
      the
      number and classes of shares purchasable upon exercise of each Warrant in effect
      immediately prior to such action shall be adjusted so that the holder of any
      Warrant thereafter exercised may receive the number and classes of shares of
      capital stock of the Company which such holder would have owned immediately
      following such action if such holder had exercised the Warrant immediately
      prior
      to such action.

    

    For
      a
      dividend or distribution the adjustment shall become effective immediately
      after
      the record date for the dividend or distribution. For a subdivision, combination
      or reclassification, the adjustment shall become effective immediately after
      the
      effective date of the subdivision, combination or
      reclassification.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    If
      after
      an adjustment the holder of a Warrant upon exercise of it may receive shares
      of
      two or more classes of capital stock of the Company, the Board of Directors
      of
      the Company shall in good faith determine the allocation of the adjusted
      Exercise Price between or among the classes of capital stock. After such
      allocation, that portion of the Exercise Price applicable to each share of
      each
      such class of capital stock shall thereafter be subject to adjustment on terms
      comparable to those applicable to Common Stock in this Agreement.
      Notwithstanding the allocation of the Exercise Price between or among shares
      of
      capital stock as provided by this Section 9(a), a Warrant may only be exercised
      in full by payment of the entire Exercise Price currently in
      effect.

    

    (b) Consolidation,
      Merger or Sale of the Company.
      If the
      Company is a party to a consolidation, merger or transfer of assets which
      reclassifies or changes its outstanding Common Stock, the successor corporation
      (or corporation controlling the successor corporation or the Company, as the
      case may be) shall by operation of law assume the Company's obligations under
      this Warrant Agreement. Upon consummation of such transaction the Warrants
      shall
      auto-matically become exercisable for the kind and amount of securities, cash
      or
      other assets which the holder of a Warrant would have owned immediately after
      the consolidation, merger or transfer if the holder had exercised the Warrant
      immediately before the effective date of such transaction. As a condition to
      the
      consummation of such transaction, the Company shall arrange for the person
      or
      entity obligated to issue securities or deliver cash or other assets upon
      exercise of the Warrant to, concurrently with the consummation of such
      transaction, assume the Company's obligations hereunder by executing an
      instrument so providing and further providing for adjustments which shall be
      as
      nearly equivalent as may be practical to the adjustments provided for in this
      Section 9.

    

    10. Successors.
      All the
      covenants and provisions of this Agreement by or for the benefit of the Company
      or Holder shall bind and inure to the benefit of their respective successor
      and
      assigns hereunder. The Holder may not assign this Warrant without the prior
      written consent of the Company, such consent not to be unreasonably withheld,
      provided further that any such transfer may be made only pursuant to an
      effective registration statement or pursuant to any exemption from the
      registration requirements under the Securities Act.

    

    11. Counterparts.
      This
      Agreement may be executed in any number of counterparts and each of such
      counterparts shall for all proposes be deemed to be an original, and such
      counterparts shall together constitute by one and the same
      instrument.

    

    12. Notices.
      All
      notices or other communications under this Warrant shall be in writing and
      shall
      be deemed to have been given if delivered by hand or mailed by certified mail,
      postage prepaid, return receipt requested, addressed as follows: if to the
      Company: Attention: Chief Executive Officer, and to the Holder: at the address
      of the Holder appearing on the books of the Company or the Company’s transfer
      agent, if any.

    

    Either
      the Company or the Holder may from time to time change the address to which
      notices to it are to be mailed hereunder by notice in accordance with the
      provisions of this Paragraph 12.

    

    13. Supplements
      and Amendments.
      The
      Company may from time to time supplement or amend this Warrant Agreement without
      the approval of any Holders of Warrants in order to cure any ambiguity or to
      be
      correct or supplement any provision contained herein which may be defective
      or
      inconsistent with any other provision, or to make any other provisions in regard
      to matters or questions herein arising hereunder which the Company may deem
      necessary or desirable and which shall not materially adversely affect the
      interest of the Holder.

    

    14. Severability.
      If for
      any reason any provision, paragraph or term of this Warrant Agreement is held
      to
      be invalid or unenforceable, all other valid provisions herein shall remain
      in
      full force and effect and all terms, provisions and paragraphs of this Warrant
      shall be deemed to be severable.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    15. Governing
      Law and Venue.
      This
      Warrant shall be deemed to be a contract made under the laws of the State of
      Texas and for all purposes shall be governed and construed in accordance with
      the laws of said State without regard to conflict of laws provisions. Any
      proceeding arising under this Warrant Agreement shall be instituted in Houston,
      Texas. 

    

    16. Headings.
      Paragraphs and subparagraph headings, used herein are included herein for
      convenience of reference only and shall not affect the construction of this
      Warrant Agreement nor constitute a part of this Warrant Agreement for any other
      purpose.

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed, as of the date and year first above written.

     

    
      	
               

              Blast
                Energy Services, Inc.

               

              By:
                _________________________________

               

              Name:
                ______________________________ 

            	 	
              HOLDER:
                

               

              By:
                ____________________________________

              Name:
                __________________________________ 

              Tax
                ID:
                _________________________________

            

    

    

    
      
        
          

           

        

         

      

      
         

        
          

        

      

      
         

        
        

      

    

    Exhibit
      A

    

    THE
      SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE
      TRANS-FERRED WITHOUT AN EFFECTIVE REGIS-TRATION THEREOF UNDER SUCH ACT OR
      PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL, REASON-ABLY SATISFACTORY TO
      THE
      COR-PORATION AND ITS COUN-SEL, THAT SUCH REGISTRATION IS NOT
      REQUIRED.

    

    Void
      after 11:59 P.M. August __, 2008

    

    

    

    WARRANT
      TO PURCHASE SHARES

    OF
      COMMON
      STOCK OF

    BLAST
      ENERGY SERVICES, INC

    

    

    Initial
      Number of Shares:  _______________

    Initial
      Exercise Price:   $0.
      per
      share

    Date
      of
      Grant:   August
      __, 2006

    Expiration
      Date:   August
      __, 2008

    

    THIS
      CERTIFIES THAT, for value received, ________________________, or any person
      to
      whom the inter-est in this Warrant is lawful-ly transferred ("Holder") is
      entitled to purchase the above number (as adjust-ed pursuant to Section 4
      hereof) of fully paid and non-assess-able shares of the Common Stock (the
      "Shares") of Blast Energy Services, Inc., a Califor-nia corporation (the
      "Company) having an Initial Exercise Price as set forth above, subject to the
      provi-sions and upon the terms and condi-tions set forth herein. The exercise
      price, as adjusted from time to time as provided herein, is referred to as
      the
      "Exercise Price".

    

    1. Term.
      The
      purchase right represented by this Warrant is exer-cisable, in whole or in
      part,
      at any time commencing on the Date of Grant and ending on the Expiration Date,
      after which time the Warrant shall be void.

    

    2. Method
      of Exercise; Payment; Issuance of New Warrant.
      Subject
      to Section 1 hereof, the right to purchase Shares repre-sented by this Warrant
      may be exercised by Holder, in whole or in part, for the total number of Shares
      remaining available for exercise by the surrender of this Warrant (with the
      notice of exercise form attached hereto as Exhibit A duly executed) at the
      principal office of the Company and by the payment to the Company, by check
      made
      payable to the Company drawn on a United States bank and for United States
      funds, or by delivery to the Company of evidence of cancellation of indebtedness
      of the Company to such Holder, of an amount equal to the then appli-cable
      Exercise Price per share multiplied by the number of Shares then being
      purchased. In the event of any exercise of the purchase right represented by
      this War-rant, certificates for the Shares so purchased shall be promptly
      delivered to Holder and, unless this Warrant has been fully exercised or has
      expired, a new Warrant

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    representing
      the portion of the Shares, if any, with respect to which this Warrant shall
      not
      then have been exer-cised shall also be promptly delivered to
      Holder.

    

    3. Exercise
      Price.
      The
      Exercise Price at which this Warrant may be exercised shall be the Initial
      Exercise Price, as adjusted from time to time pursuant to Section 4
      hereof.

    

    4. Reclassification,
      Reorganization, Consolidation or Merger.
      In the
      case of any reclassification of the Common Stock of the Company, or any
      reorganization, consolidation or merger of the Company with or into another
      corporation (other than a merger or reorganization with respect to which the
      Company is the continuing corporation and which does not result in any
      reclassification of the Common Stock), the Company, or such successor
      corporation, as the case may be, shall execute a new warrant, providing that
      the
      Holder shall have the right to exercise such new warrant and upon such exercise
      to receive, in lieu of each share of Common Stock theretofore issuable upon
      exercise of this Warrant, the number and kind of securities, money and property
      receivable upon such reclassification, reorgani-zation, consolidation or merger
      by a holder of shares of Common Stock of the Company for each share of Common
      Stock. Such new warrant shall provide for adjustments which shall be as nearly
      equivalent as may be practicable to the adjust-ments provided for in this
      Section 4 including, without limitation, adjustments to the Exercise Price
      and
      to the number of shares issuable upon exer-cise of this Warrant. The provisions
      of this Section 4 shall similarly apply to successive reclassifica-tions,
      reorganiza-tions, consolidations or mergers.

    

    5. Transferability
      and Non-negotiability of Warrant.
      This
      Warrant may not be transferred or assigned in whole or in part without
      compliance with applicable federal and state securities laws by the transferor
      and the transferee (includ-ing, without limitation, the delivery of investment
      represen-tation letters and legal opinions reasonably satisfactory to the
      Company, if reasonably requested by the Com-pany). Subject to the provisi-ons
      of
      this Section 5, title to this War-rant may be transferred in the same
      manner as a negotiable instrument transferable by endorsement and
      delivery.

    

    6. Miscellaneous. The
      Company cove-nants that it will at all times reserve and keep available, solely
      for the purpose of issue upon the exercise hereof, a sufficient number of shares
      of Common Stock to permit the exer-cise hereof in full. Such shares, when issued
      in compli-ance with the provisions of this Warrant and the Articles of
      Incorporation, as amended, will be duly authorized, validly issued, fully paid
      and non-assessable. No Holder of this Warrant, as such, shall, prior to the
      exercise of this Warrant, be entitled to vote or receive dividends or be deemed
      to be a share-holder of the Company for any purpose, nor shall anything
      contained in this Warrant be construed to confer upon Holder-, as such, any
      rights of a shareholder of the Company or any right to vote, give or withhold
      consent to any corporate action, receive notice of meetings, receive dividends
      or subscription rights, or otherwise. Upon 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, upon
      delivery of an indemnity agreement reason-ably satisfactory in form and amount
      to the Company or, in the case of any such mutila-tion, upon surrender and
      cancellation of such Warrant, the Company at its expense will execute and
      deliver, in lieu thereof, a new Warrant of like date and tenor. No fractional
      shares shall be issued in connec-tion with any exercise hereunder, but in lieu
      of such frac-tional shares the Company shall make a cash payment there-fore
      upon
      the basis of the Warrant Price then in effect. The terms and provisions of
      this
      Warrant shall inure to the bene-fit of, and be binding upon, the Company and
      the
      Holder hereof and their respec-tive successors and as-signs. This Warrant shall
      be governed by and construed under the laws of the State of Texas.

    

    

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              BLAST
                ENERGY SERVICES, INC.

            
	
              Holder:

            	
              A
                California corporation

            
	 	 
	
              By:
                __________________________________

            	
              By:
                _______________________________

            
	
              Name:
                _______________________________

            	
              Name:
                _____________________________

            
	
              Date:
                ________________________________

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