BLUG News
Press Release Source: Blugrass Energy Inc.
Blugrass Provides Update on Acquisitions and Joint Ventures
Tuesday March 3, 6:00 am ET
LEXINGTON, Ky.--(BUSINESS WIRE)--Blugrass Energy Inc. (OTCBB:BLUG - News) today provided the following updates on its acquisitions and Western Kentucky Joint Venture.
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On Blugrass’s previously announced acquisition of acreage in Eastern Kentucky, Blugrass now believes that the reserves could potentially be more than originally thought after further review. Also, Blugrass has been successful in restructuring the terms of the transaction whereby the company will not be issuing any shares as part of the consideration in the transaction. Based on the closing price of Blugrass stock on Monday, March 2nd this is a savings of over $240,000 in the transaction for Blugrass. Blugrass has commenced work on evaluating and prioritizing drilling locations on this acreage. Based on the mutual agreement by the Parties, the closing date of the transaction is now expected to occur on or before Mid April 2009.
The Joint Venture that Blugrass announced to develop 5000 acres in the New Albany Shale on February 4, 2009, has been actively moving forward. Just this week, another company announced their 10th commercially successful well in a row in an area that is analogous to the acreage of the Joint Venture. The Joint Venture participants have designated the targeted Area of Mutual Interest as, “Bullseye”. Currently the steps being taken in the Joint Venture include commencing the evaluation of potential drilling locations, commencing work on the development schedule to facilitate the permitting process, finalizing the initial negotiations on a long term gas purchase agreement, and holding discussions with an industry partner to oversee the drilling and completion work on the wells.
Blugrass is currently holding discussions with another company about the possibility of entering into a Joint Venture in Eastern Kentucky that would allow Blugrass to participate in an acreage block within the Big Sinking Oil Field. The Big Sinking Oil Field is the Largest Oil Field in the Eastern United States and is classified as a “giant” oil field by the United States Geological Society. Blugrass hopes that a transaction will be finalized in the near future, but as of today an agreement or Letter of Intent has not been reached between the Parties.
About Blugrass
Blugrass Energy, Inc. is a development stage oil and gas development and exploration company based in the United States that is traded on the Over the Counter Bulletin Board under the Symbol BLUG. The goal of BLUG is to grow through internally generated and developed prospects, participation with industry partners in oil and gas exploration and in targeted joint ventures.
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