2008-12-02-2008-10-20

To purchase 500,000 BO, 1 Bcfg in E. KY.

Blugrass Energy Inc., Lexington, Ky., (OTCBB: BLUG) plans to acquire assets in eastern Kentucky from an undisclosed seller for $759,000 in cash and 350,000 restricted shares. No value has been set for the shares. The assets include proved reserves of approximately 500,000 barrels of oil and approximately 1 billion cubic feet of gas. Blugrass president Leslie Schaefer says, 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 U.S., the Big Sinking oil field."