Bluegrass Energy Inc. (BLUG.OB) is a development stage oil and gas development and exploration company with plans to grow through strategic prospects, industry partners and targeted joint ventures. The company yesterday updated the investment community on its recent acquisitions and Kentucky joint venture, sending shares up 6 percent in yesterday’s trading.

In the press release, Bluegrass said that it believes the reserves in Eastern Kentucky are potentially more than previously announced. The company said it has adhered to the restructuring terms of the agreement for the acquisition, and that it will not issue any shares as part of the transaction, saving the company more than $240,000 (based on the closing price of its stock yesterday).

Bluegrass also said it has launched evaluation efforts on the drilling locations for the acreage and expects the transaction to close on or before mid April of 2009.

Last month the company announced a joint venture that would allow it to develop 5,000 acres in the New Albany Shale. Earlier this week, Bluegrass announced its 10th consecutive commercially successful well relative to the acreage of the joint venture. Bluegrass is currently taking steps to commence exploration for potential drilling locations and is finalizing negotiations and schedules to complete the work on the wells.

The company also announced it is negotiating with another company regarding an additional joint venture in Eastern Kentucky. This venture would allow Bluegrass to participate in operations in the largest oilfield in the eastern United States, the Big Sinking Oil Field.