PEDEVCO (PED) 8-K/A Financial Statements and Exhibits

Exhibit 99.2

Table of Contents

	Page Number
Unaudited Pro Forma Combined Financials Statements
Balance Sheet as of June 30, 2006	2
Statement of Operations for the year ended December 31, 2005	3
Statement of Operations foe six months ended June 30, 2006	4
Notes to Unaudited Pro Forma Financial Statements	5

1

BLAST ENERGY SERVICES, INC.

UNAUDITED PRO FORMA COMBINED BALANCE SHEET

As of June 30, 2006

	Blast Energy Services, Inc.			Eagle Domestic Drilling Operations LLC		Pro Forma Adjustments				Blast Energy Services, Inc. Pro Forma
Assets
Current Assets
Cash	$	223,228		$	4,887		4,792,313		(a)	$	5,020,428
Accounts Receivable, net of allowance for doubtful accounts		135,879			3,525,770		(3,525,770	)	(b)		135,879
Other Assets		205,116			-		5,400,000		(c)		5,605,116
Current Assets		564,223			3,530,657		6,666,543				10,761,423
Intellectual Property, net of accumulated amortization		1,100,357			-		-				1,100,357
Deferred Financing Costs							1,435,827		(d)		1,435,827
Equipment, accumulated depreciation		1,076,951			6,988,976		52,630,665		(e)		60,696,592
Total Assets	$	2,741,531		$	10,519,633	$	60,733,035			$	73,994,199
Liabilities and Stockholder’s Equity
Current Liabilities
Accounts payable	$	601,255			-		-			$	601,255
Accrued expenses		416,026			-		-				416,026
Deferred revenue		74,593			1,822,200		-				1,896,793
Notes payable-related parties		-			7,041,926		(7,041,926	)	(b)		-
Notes payable-other		542,500			-		-				542,500
Total Current Liabilities		1,634,374			8,864,126		(7,041,926	)			3,456,574
Long Term Liabilities
Senior Debt							27,623,633		(f)		27,623,633
Advances-related parties		1,000,000			-		-				1,000,000
Notes payable-other		-			-		5,400,000		(c)		5,400,000
Deferred revenue, less current portion		6,780			-		-				6,780
Total Liabilities		2,641,154			8,864,126		25,981,707				37,486,987
Stockholders’ Equity
Common stock		44,790					17,400		(g)		62,190
					5,000		(5,000	)	(h)		-
Additional paid in capital		31,962,163					36,389,435		(g)		68,351,598
Accumulated deficit		(31,906,576	)		1,650,507		(1,650,507	)	(h)		(31,906,576	)
Total Stockholders’ Equity		100,377			1,655,507		34,751,328				36,507,212
Total Liabilities and Stockholders’ Equity	$	2,741,531		$	10,519,633	$	60,733,035			$	73,994,199

2

BLAST ENERGY SERVICES, INC.

UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS

For the Year Ended December 31, 2005

	Blast Energy Services, Inc.			Eagle Domestic Drilling Operations LLC		Pro Forma Adjustments				Blast Energy Services, Inc. Pro Forma
Revenue	$	1,159,458			-		-			$	1,159,458
Cost of Services Provided		1,317,714			-		-				1,317,714
Gross Margin (Deficit)		(158,256	)		-		-				(158,256	)
Operating Expenses:
Selling, general and administrative		2,847,212			-		2,440,600		(i)		5,287,812
Depreciation, amortization & other		119,306			-		-				119,306
Bad debts		10,000					-				10,000
Operating Loss		(3,134,774	)		-		(2,440,600	)			(5,575,374	)
Other (Income) Expense:
Other (income)		(560,912	)		-		-				(560,912	)
Interest expense		195,121			-		4,364,393		(j)		9,363,579
							4,804,065		(k)
(Gain) loss on sale of equipment		93,247			-		-				93,247
Interest income		(4	)		-		-				(4	)
Total other (income)/expense		(272,548	)		-		9,168,458				8,895,910
Net Income (Loss)	$	(2,862,226	)		-		(11,609,058	)		$	(14,471,284	)
Basic and diluted net loss per share	$	(0.08	)		-					$	(0.26	)
Weighted average shares outstanding		37,480,228			-		17,400,000				54,880,228

3

BLAST ENERGY SERVICES, INC.

UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2006

	Blast Energy Services, Inc.			Eagle Domestic Drilling Operations LLC		Pro Forma Adjustments				Blast Energy Services, Inc. Pro Forma
Revenue	$	571,194			2,600,604		-			$	3,171,798
Cost of Services Provided		936,116			-		-				936,116
Gross Margin (Deficit)		(364,922	)		2,600,604		-				2,235,682
Operating Expenses:
Selling, general and administrative		1,306,386			809,675		1,220,300		(i)		3,336,361
Depreciation, amortization & other		52,622			140,422		241,242		(l)		434,286
Operating Gain (Loss)		(1,723,930	)		1,650,507		(1,461,542	)			(1,534,965	)
Other (Income) Expense:
Other (income)		(81,661	)		-		-				(81,661	)
Interest expense		73,448			-		2,182,250		(j)		4,657,730
							2,402,032		(k)
Loss on extinguishment of debt		262,000			-		-				262,000
Total other (income)/expense		253,787			-		4,584,282				4,838,069
Net Income (Loss)	$	(1,977,717	)		1,650,507		(6,045,824	)		$	(6,373,034	)
Basic and diluted net loss per share	$	(0.05	)		-					$	(0.11	)
Weighted average shares outstanding		43,199,118			-		17,400,000				60,599,118

4

BLAST ENERGY SERVICES, INC.

NOTES TO UNAUDITED PRO FORMA FINANCIAL STATEMENTS

1 - Basis of Presentation

The accompanying unaudited pro forma combined financial statements present the pro forma results of operations of Blast Energy Services, Inc and Eagle Domestic Drilling Operations LLC on a combined basis based on the historical financial information of each company after giving the effect to the acquisition of Eagle by Blast on August 25, 2006 for $50 million in cash and 1.5 million shares of Blast common stock. The acquisition of Eagle was financed through senior debt of $40,600,000 and a private placement of 15 million shares of Blast common stock at a price of $1.00 per share. The lender of the senior debt received warrants to purchase 6,090,000 shares of common stock at an exercise price of $1.44 per share and an additional 6,090,000 shares of common stock at an exercise price of $0.01. These warrants have a seven-year term. The broker received warrants to purchase 304,500 shares of common stock at an exercise price of $0.01 with a two-year term. In connection with the private placement, Blast issued warrants to purchase 5,000,000 shares of common stock at an exercise price of $0.01 with a two-year term. Blast issued 900,000 shares to Second Bridge LLC for consulting services to complete construction of a sixth drilling rig. The acquisition was recorded using purchase method of accounting in accordance with SFAS No. 141, Business Combinations.

The unaudited pro forma combined statement of operations has been prepared assuming the acquisition occurred as of the balance sheet date and at the beginning of the periods for the statements of operations.

2 - Pro Forma Adjustments

The following are brief descriptions of each of the pro forma adjustments included in the unaudited pro forma combined financial statements.

Balance Sheet

(a)   Record net cash proceeds from financing.

(b)   Intercompany receivables and related party payable not acquired/assumed in acquisition.

(c)   Record consulting agreement with Second Bridge LLC.

(d)   Capitalize legal fees, commission and warrant expense incurred during the acquisition and debt financing transaction.

(e)   Record property and equipment at fair value based on appraisal.

(f)   Record senior debt less lender fees and warrant expense.

(g)   Record 17,400,000 shares and 17,484,500 warrants issued for the purchase. The shares were valued at the market price. The warrants were valued using the Black-Scholes pricing model. The variables used in the Black-Scholes pricing model include: (1) 4.77% risk-free interest rate, (2) expected life is the remaining life of the warrants, (3) expected volatility of 151% and (4) zero expected dividends.

(h)   Eliminate Eagle’s equity.

Income Statements

(i)   Record additional administrative expenses including the Second Bridge consulting services and the addition of Richard D. Thornton as VP Drilling Operations.

(j)   Record interest expense on the senior debt

(k)   Record the amortization of legal, commission, lenders fees and warrants issued in the transaction.

(l)   Record incremental increase in depreciation on equipment placed into service in 2006.