2009-02-26-2009-02-01-2009-02-04

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Description

Plans to form JV to develop KY New Albany assets with 64 Bcf, 695,000 BO proved undeveloped.

Blugrass Energy Inc., Lexington, Ky., (OTCBB: BLUG) plans to form a joint venture with Kentucky-based 7921 Energy LLC to develop the New Albany shale on more than 5,000 acres in western Kentucky. A third-party engineering report estimates proved undeveloped reserves on the project to be 64 billion cubic feet of gas and 695,000 barrels of oil of oil. The New Albany shale will be the primary targeted formation. In addition, potential shallower oil and gas formations on the acreage would possibly include the Ft. Payne, Warsaw, Jackson, McClowsky, O'Hara and Tar Springs. Depths of the wells are anticipated to be 3000 feet. Blugrass and 7921 anticipate drilling work to commence during 2009.