Bluegrass Energy Inc. is a domestic oil and gas development and exploration company. The company has begun to act on its plan to secure a significant asset base in eastern Kentucky.
Historically, eastern Kentucky has been heavily drilled with a great deal of success. Eastern Kentucky lies within the Appalachian basin, an area that has often been defined as the most drilled but least explored in the US. It is estimated that 80% of the energy reserves within the Appalachian basin still remain to be produced.
In the initial phase of Bluegrass Energy’s plan for eastern Kentucky, the company intends to secure proven reserves in excess of 100 BCFE within the next three years. The company’s plan is built around securing assets within known producing areas that offer opportunities to use historical results as a guideline. The other part of Bluegrass Energy’s plan is to use advanced oil recovery technologies to optimize reserve recovery.
A key criterion for Bluegrass Energy in selecting leases is the proximity of natural gas pipelines. In the past, companies drilling for oil in this area would commonly find natural gas. At the time, there was a lack of natural gas pipelines in eastern Kentucky, so the wells were abandoned or declared to be dry holes since they had no way to market the gas. That is no longer the case and the company will explore for both oil and gas.
Bluegrass Energy has commenced to secure leases in Breathitt and Magoffin Counties in eastern Kentucky. The lease areas in both counties have had solid production histories. In fact, the company’s acreage in Breathitt County lies on the eastern edge of the largest producing oil field in the eastern United States â€“ the Big Sinking Oil field.
Bluegrass Energy’s initial acreage purchases in eastern Kentucky will allow the company to secure for its benefit proven reserves in excess of 500,000 barrels of oil and 1.5 billion cubic feet of natural gas. The company is currently evaluating other opportunities in eastern Kentucky in order to reach its objective of owning 100 BCFE of proven reserves within the next three years.
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