Amendment #1 To The Construction Agreement

Exhibit 10.2


CONSTRUCTION AGREEMENT

AMENDMENT #1

August 25, 2005


WHEREAS , Alberta Energy Holding, Inc. (" Alberta" ), a private company organized and in good standing under the laws of Delaware and Blast Energy Services, Inc. (" Blast" and formerly known as Verdisys, Inc.), a public company organized and in good standing under the laws of California entered into a Construction Agreement dated March 17, 2005 (the " Agreement" ). Alberta and Blast shall collectively be known as the Party or Parties;

WHEREAS , the Parties now wish to reaffirm the provisions of the Agreement and make certain amendments thereto. The original objective is reaffirmed that Alberta will engineer, design, source, and build the AFJ Coiled Tubing Rig System under the terms and conditions in the Agreement as modified herein. Alberta has undertaken to ensure the integration of the various rig systems and to assist Blast in deploying the rig through commissioning and into commercial operation;


WHEREAS the Parties are executing a Technology Purchase Agreement as of this date;

THEREFORE , in view of the good and valuable consideration stated below, Blast and Alberta agree as follows:

1. The scope of the construction project is defined in the Agreement and the factory acceptance test criteria are defined herein in Schedule A.


2. The modified lump sum price in Section 3 of the Agreement is hereby amended from $850,000 to $900,000 to recognize delays in funding and costs to expedite delivery.


3. The Budget Overrun sharing arrangements for Alberta in section 4 of the Agreement is hereby amended to range from costs in excess of $900,000 but not to exceed $1,000,000. Such range was previously $850,000 to $950,000.

4. The Budget Overrun sharing arrangements for Blast to assume in section 4 of the Agreement is hereby amended to amounts in excess of $1,000,000. Such limit was previously $950,000.


5. Alberta will now use its best efforts to deliver Blast Rig #1, as specified in Appendix A of the Agreement, for Factory Acceptance Testing on or before October 1, 2005. Such testing criteria are defined in Schedule A herein.

6. Alberta will provide a weekly update to David Adams including the following items: a critical path schedule, allocation of costs to date by major line item, upcoming major equipment/integration acti ...