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Sunday, January 22, 2012

Pacific Energy Development and Blast Energy Services Sign Merger Agreement

Pacific Energy Development Corp. (“PEDCO”), a privately-held oil and gas company engaged in the acquisition and development of energy projects in the U.S. and Pacific Rim countries, and Blast Energy Services, Inc. (“Blast”), a U.S. publicly-traded operating oil and gas company engaged in the exploration and production of petroleum resources in the U.S. and the development and commercialization of a patented applied fluid jetting down-hole stimulation technology, today announced that they have signed a definitive Agreement and Plan of Reorganization (the “Merger Agreement”).

Under the Merger Agreement, PEDCO will merge (the “Merger”) into a wholly-owned subsidiary of Blast and PEDCO will remain as the surviving company and wholly-owned subsidiary of Blast, which will change its name to “PEDEVCO Corp.” In connection with the Merger, Blast will be required to convert all of its existing preferred stock into common stock and consummate a reverse stock split resulting in no more than 2,400,000 shares of its common stock remaining issued and outstanding on a fully-diluted basis prior to the Merger effective date, subject to downward adjustment in the event Blast does not reimburse PEDCO for certain of Blast’s transaction-related fees and expenses currently being funded by PEDCO. As a result of the Merger, PEDCO stockholders will receive one (1) share of Blast’s Common Stock or Series A Preferred Stock for each share of PEDCO’s Common Stock or Series A Preferred Stock, respectively, and the stockholders of PEDCO are anticipated to receive up to approximately 95% of the issued and outstanding capital stock of Blast. The Merger is expected to close as soon as possible, but no later than June 1, 2012, subject to the satisfaction of a number of conditions precedent and milestones, including the conversion of various outstanding debts of Blast into equity of Blast, and the approval of the Merger by the Blast and PEDCO boards of directors and stockholders, respectively.

PEDCO’s CEO and President, Frank C. Ingriselli, commented, “We are excited about the planned merger with Blast which represents a significant step in Pacific Energy Development’s accelerated growth plan for 2012. At the operational level, we believe the merger will create strong synergy with a valuable player in the domestic oil and gas industry with extensive technical experience that will complement our team as Pacific Energy Development commences its drilling program on our newly acquired Niobrara shale oil asset in the second quarter of 2012. In addition, at the corporate strategy and stockholder value levels, we anticipate that PEDCO’s merger into Blast as a publicly-traded operating company will not only enhance our ongoing and future acquisition efforts in the U.S. and abroad through opening access to the public capital markets, but will also broaden our stockholder base and enhance stockholder value.”

Blast’s Chairman, CEO & President, Roger P. (Pat) Herbert, stated, “The merger with Pacific Energy Development presents a unique growth and value opportunity for Blast and its stockholders to work with a team that has a wealth of global experience and a proven track record in the industry. Pacific Energy Development’s oil and gas assets and established partnerships in the U.S. and overseas will provide Blast an immediate gateway into the highly-prospective Niobrara and other major U.S. shale plays, as well as future access to the international energy market, including China, where we believe early stage shale developments represent a significant market opportunity for Blast.”

PEDCO’s asset portfolio includes interests and operatorship of 7,450 net acres located in the Niobrara shale formation in Colorado, with a work program scheduled to commence in Q2 2012, and PEDCO is also currently under a binding contract to acquire an approximate 8% working interest in producing oil and gas leases covering 1,650 net acres in the Leighton Eagle Ford Shale formation in McMullen County, Texas. Blast holds a 65% working interest (net revenue interest of approximately 50%) in the North Sugar Valley Field located in Matagorda County, Texas, which is currently producing from three wells, as well as a 25% working interest in the undeveloped Guijarral Hills Field located in the San Joaquin basin of central California and ownership of the patented Applied Fluid Jetting (“AFJ”) technology, currently still in development, which has the goal of helping to improve oil and gas recoveries from mature oil and gas properties.

For more information on Pacific Energy Development Corp, please visit their website at www.PacificEnergyDevelopment.com, and for more information on Blast Energy Services, please visit their website at www.BlastEnergyServices.com.

Silvore Fox Updates Progress on Winston Lake and Coxheath

Silvore Fox is pleased to announce that they have received the results of the Geotech Ltd VTEM survey over their 9600 ha claim holdings in the Winston - Pick Lake area north of Schreiber in Northern Ontario.

The 1,061 line kilometer helicopter survey covered the area for the most part at 100 meter line spacing recording both VTEM and magnetic response. Several VTEM anomalies were encountered, some of which had not been indicated by past surveys.

Silvore Fox is presently compiling this new data with pertinent historical geological data and is currently evaluating and prioritizing a number of quality drill targets that have been identified for follow-up geophysical work and diamond drilling in 2012.

Mr. Ian Chisholm, PEng, was engaged by the Corporation to be the lead consultant on this project.

Coxheath, Nova Scotia (Copper Porphyry system, 100% owned)

Extensive airborne and ground geophysical work, mapping and trenching has been performed on the surface mineralization on this property in the past. The latest geophysics and trenching program in the second half of 2011 had suggested the presence of a possible buried intrusive (porphyry- type system) source for outcropping vein mineralization found at the old mine site.

Three targeted drill holes totaling 1353 meters have been completed to test this possibility. The holes tested an area east of the Mountain Zone and south of the Central Zone outcropping Copper-Moly vein systems where the IP survey had indicated a broad anomaly at depth with relatively high chargeability extending over 600m of strike and suggested thickness varying from 150 to 300m.

No significant shallow mineralization was intersected and part of the anomaly appears to represent the contact between volcanics and the local intrusives. Two of the three holes intersected narrow blind mineralized veins with copper cutting the volcanics. Drill Hole SF11-01 intersected 1.6 meters grading 0.43% Copper at 556 to 557.6m and hole SF11-02 intersected two veins, one grading 0.097% Copper and 0.01% Moly over 1.0 meter at 309 to 310m and the other grading 0.202% Copper and 0.028% Moly at 319 to 321m. We are compiling the new drill information with the geophysical results to assist in determining the next step of our Coxheath exploration plan.

Management Comments

"The Winston Lake property has justified our initial enthusiasm for the project as a number of strong conductors were discovered on our claims. The VTEM survey provided precise targets, several of which are considered drill-ready by our geological team. These results have confirmed that there is potential for discovery of an ore body of similar size and grade to the Winston and Pick Lake mines of the 1990's on our claims.

At Coxheath drill results in the new target area continued to show mineralization similar to that we have seen across the entire Coxheath claims area. The ground truth provided by these drill results has assisted our team in developing a stronger understanding of the area at depth and this will shape our ground geophysics and drill programs going forward."

- Mr. Harold Cabrita, President and CEO, Silvore Fox Minerals Corp

Ian Chisholm, PEng, a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical information contained in this news release.

About Silvore Fox Minerals Corp.

Silvore Fox Minerals Corp. is a Toronto, Ontario, Canada based public mineral exploration company. We are focused on high tonne potential base metal exploration projects within a diversified portfolio of properties.

On November 17th, 2010, Silvore Fox entered into a Strategic Agreement with Beijing Donia Resources Co. Ltd ("Donia"). Donia is the single largest shareholder of Silvore Fox currently holding approximately 30% of the Corporation's outstanding shares. This strategic partnership provides the Corporation with a strong platform for growth through mineral exploration expertise, funding and strategic acquisitions. SFX has an experienced management and geological team.

Harry Cabrita, President and CEO

Dr. Jingbin Wang, Chairman