CALGARY, AB -- 10/29/09 --
Blugrass Energy Inc. (OTCBB: BLUG) is pleased
to announce that Doral Energy Corp. ("Doral") has executed the closing of
the purchase and sales agreement to acquire a 40.0% working interest ("WI")
in all leases owned by Blugrass in and around the Cave Pool Unit located in
Eddy County, New Mexico (the "Cave Pool Unit"). Blugrass had previously
acquired a 100% working interest in the approximately 2,800 acres of the
Cave Pool Unit properties from Robinhood L.L.C. (Marks and Garner
Production Company) on October 12, 2009.
The Cave Pool Unit is located within the Artesia Vacuum Trend, more
specifically, within the Grayburg Jackson Pool. The Artesia Vacuum Trend
currently contains thirteen reservoirs with more than 1 MMBO cumulative
production. Cumulative production from these 13 reservoirs was 796 MMBO as
of 2000. Depths to the top of reservoirs range from 1290 to 4700 ft. This
is a mature Area, especially within the productive San Andres Carbonates.
Recent development of lower permeability Grayburg sandstones in the
Grayburg Jackson reservoir during the mid-1990s has been successful to the
point of reversing production decline and is a major focus of current and
future development in the area.
The Cave Pool Unit properties currently produce approximately 12 BOPD and
30 MCFD of natural gas from 32 wells which were drilled on 40-acre well
spacing in the Grayburg formation of the Grayburg Jackson Pool. An
additional 10 shut-in wells on the properties have been identified and will
be reworked and returned to production by Doral Energy, adding to the daily
production from the properties. The redevelopment of the Cave Pool Unit as
a 20-acre 5-spot Grayburg waterflood project could potentially add
approximately 100 development drilling locations and potential gross
reserves in excess of 3.0 million barrels of oil equivalent.
Mr. Berscht, president of Blugrass Energy Inc, states, "Blugrass Energy is
very pleased to have the opportunity to develop the Cave Pool Unit
properties with our new partner, Doral Energy Corp. This property fits well
within our business model and will allow Blugrass to bring these wells back
into production with all of Dorel's expertise. The redevelopment of the
Cave Pool Unit has the potential of being very beneficial to both Doral
Energy and Blugrass Energy."
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.
THIS NEWS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS," AS THAT TERM IS
DEFINED IN SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES EXCHANGE ACT OF
1934, AS AMENDED. STATEMENTS IN THIS NEWS RELEASE, WHICH ARE NOT PURELY
HISTORICAL, ARE FORWARD-LOOKING STATEMENTS AND INCLUDE ANY STATEMENTS
REGARDING BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS REGARDING THE FUTURE.
EXCEPT FOR THE HISTORICAL INFORMATION PRESENTED HEREIN, MATTERS DISCUSSED
IN THIS NEWS RELEASE CONTAIN FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO
CERTAIN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED
OR IMPLIED BY SUCH STATEMENTS. STATEMENTS THAT ARE NOT HISTORICAL FACTS,
INCLUDING STATEMENTS THAT ARE PRECEDED BY, FOLLOWED BY, OR THAT INCLUDE
SUCH WORDS AS "ESTIMATE," "ANTICIPATE," "BELIEVE," "PLAN" OR "EXPECT" OR
SIMILAR STATEMENTS ARE FORWARD-LOOKING STATEMENTS. RISKS AND UNCERTAINTIES
FOR THE COMPANY INCLUDE, BUT ARE NOT LIMITED TO, THE RISKS ASSOCIATED WITH
OIL AND GAS EXPLORATION AND DEVELOPMENT AND NEEDS FOR FUNDING AS WELL AS
THE RISKS SHOWN IN THE COMPANY'S MOST RECENT ANNUAL REPORT ON FORM 10-KSB
AND ON FORM 10-QSB AND FROM TIME-TO-TIME IN OTHER PUBLICLY AVAILABLE
INFORMATION REGARDING THE COMPANY. OTHER RISKS INCLUDE RISKS ASSOCIATED
WITH THE REGULATORY APPROVAL PROCESS, COMPETITIVE COMPANIES, FUTURE CAPITAL
REQUIREMENTS AND THE COMPANY'S ABILITY AND LEVEL OF SUPPORT FOR ITS
EXPLORATION AND DEVELOPMENT ACTIVITIES. THERE CAN BE NO ASSURANCE THAT THE
COMPANY'S DEVELOPMENT EFFORTS WILL SUCCEED AND THE COMPANY WILL ULTIMATELY
ACHIEVE COMMERCIAL SUCCESS. THESE FORWARD-LOOKING STATEMENTS ARE MADE AS OF
THE DATE OF THIS NEWS RELEASE, AND THE COMPANY ASSUMES NO OBLIGATION TO
UPDATE THE FORWARD-LOOKING STATEMENTS, OR TO UPDATE THE REASONS WHY ACTUAL
RESULTS COULD DIFFER FROM THOSE PROJECTED IN THE FORWARD-LOOKING
STATEMENTS. ALTHOUGH THE COMPANY BELIEVES THAT THE BELIEFS, PLANS,
EXPECTATIONS AND INTENTIONS CONTAINED IN THIS NEWS RELEASE ARE REASONABLE,
THERE CAN BE NO ASSURANCE THOSE BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS
WILL PROVE TO BE ACCURATE. INVESTORS SHOULD CONSIDER ALL OF THE INFORMATION
SET FORTH HEREIN AND SHOULD ALSO REFER TO THE RISK FACTORS DISCLOSED IN THE
COMPANY'S PERIODIC REPORTS FILED FROM TIME-TO-TIME WITH THE UNITED STATES
SECURITIES AND EXCHANGE COMMISSION.
THIS NEWS RELEASE HAS BEEN PREPARED BY MANAGEMENT OF THE COMPANY WHO TAKES
FULL RESPONSIBILITY FOR ITS CONTENTS. EACH OF THE NASD, THE SEC AND THE
OTCBB NEITHER APPROVES NOR DISAPPROVES OF THE CONTENTS OF THIS NEWS
RELEASE. THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE
SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE
WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE
SECURITIES LAWS OF ANY SUCH JURISDICTION.
Contact:
Blugrass Energy Inc.
Tony Collins
1-877-511-0110
