Blugrass Announces LOI for Acquisitionadmin
Blugrass Energy Inc. has signed a Letter of Intent to acquire proven reserves of approximately 500,000Bbls of oil and approximately 1 Bcf of natural gas in Eastern Kentucky. Total price to be paid for the reserves is $759,000 plus 350,000 shares of restricted stock. It is anticipated the transaction will close prior to the end of October.
Leslie Schaefer, President, offered the following comments on the transaction, “Blugrass intends to be very aggressive in securing properties. We believe there are some real values that can be secured at this time based on local and world economic events. That offers Blugrass a real window of opportunity that we intend to take advantage of. We believe these reserves meet our internal criteria of being located in known producing areas, have relatively low geological risk, and are very reasonable to develop and operate. In the case of one of the properties it is located on the Eastern edge of the largest known producing oil field in the Eastern United States, the Big Sinking Oil field. The Big Sinking Field is classified as a “giant” according to the Unties States Geological Society and to date has produced in excess of 120 million barrels of oil.”
Blugrass Energy Inc. is actively engaged in the acquisition, development and exploitation of oil and gas properties. The mission of Blugrass is to secure oil and gas properties with relatively low geological risk within well known producing areas, which will have the characteristics of low operating costs and offer Blugrass advantageous acquisition economics in order to optimize value for our shareholders. To learn more about Blugrass Energy Inc. go to our Web site at, www.blugrassenergy.com.