SOURCE: Blugrass Energy Incorporated

April 13, 2010 18:28 ET

Blugrass Energy Inc. Acquires 3D Seismic on Canyon Project

CALGARY, AB--(Marketwire - April 13, 2010) - Blugrass Energy Inc. (OTCBB: BLUG) is pleased to announce that the Company has acquired data for its initial two Canyon Sands locations, Block CS-S-A consisting of CSL 1-3 and Block CS-S-B consisting of CSL 4-6. The Canyon Sands formation on the Childress-Soto prospect has numerous targets shown by 3D seismic data. 3D seismic buildups provides detailed subsurface mapping including probable reservoir locations.

Petro Grande has designated over 75 locations on lands located on the Soto Lease (Canyon Wells) that it believes would be economic to drill. In addition Petro Grande has identified 75 targets for Strawn and Ellenburger formations. Petro Grande estimates that there could be approximately 500 BCF of natural gas in its acreage position, this potentially represents an opportunity of recovering over $2 billion of natural gas based on today's approximate value of $4 per thousand cubic feet of natural gas. However to date an independent third party reserve report has not been completed. The three main natural gas formations are Canyon Sands which are approximately 6,300' in depth; Strawn formation, approximately 12,000' in depth; and the Ellenburger is approximately 14,000' in depth.

Nearby development activity is robust with major industry players and excellent regional infrastructure which provides access to local and international markets. A few of the companies adjacent to the properties are Chevron, Occidental Petroleum, Anadarko Petroleum and Chesapeake to name a few.

Mr. Berscht, President of Blugrass Energy Inc., states, "Having this type of data significantly increases our chances of success with drilling. We look forward to commencing drilling these first two wells."

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Contact Information

  • Contact:
    Blugrass Energy Inc.
    Tony Collins
    1-877-511-0110