Blugrass Energy Inc. (BLUGD) Reports on Potential Oil and Gas Acquisition

Blugrass Energy Inc. reported that the company is negotiating the purchase of producing oil and gas leasehold located in the United States. The company estimates that the properties provide $400,000 in monthly revenue to the current owners.

Blugrass Energy said that it is looking to acquire a non-operating minority interest in the properties, which are located in Texas and Oklahoma. The acreage has more than ninety producing oil and gas wells and the minority interest on these wells range from 2% to 7% each.
A report by an independent petroleum engineering firm assigned a PV-10 value of $50 million to the proven reserves.

The company owns nearly 5,000 acres of oil and gas leasehold in the Permian Basin of Texas and estimates that the properties have approximately 168 billion cubic feet of natural gas reserves net to the company. The company plans to drill a deep gas well on this property sometime during the summer of 2011.

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