Blugrass Energy Inc. announced that it has agreed to form a Joint Venture with 7921 Energy LLC to develop the New Albany Shale on over 5000 acres in Western Kentucky.
A third party engineering report estimates the reserves on the project to be 64 BCF of gas and 695,000 Bbls of oil. All the reserves have been classified as Proven Undeveloped.
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.
Several public and private companies have been successful in the area and are reporting high commercial success rates in the drilling and completion of wells within Western Kentucky.
Currently, Blugrass and 7921 are actively putting a plan of development together, finalizing a long-term gas purchase agreement, and negotiating with other industry partners who have expressed interest in participating or providing services for the project. Blugrass and 7921 anticipate drilling work to commence during 2009.
Blugrass Energy, Inc. is an oil and gas development and exploration company based in the United States that is traded on the Over the Counter Bulletin Board under the Symbol BLUG. The goal of BLUG is to grow through internally generated and developed prospects, participation with industry partners in oil and gas exploration and in targeted joint ventures.
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