Blugrass Energy Update on Cave Pool Operations
CALGARY, AB -- (Marketwire) -- 06/29/10 -- Blugrass Energy Inc.
(OTCBB: BLUG) is pleased to announce several updates within the Cave
Pool Unit to date. Twenty one (21) oil wells have undergone pressure
testing to ensure both casing and tubing integrity testing on these
leases. This will determine what wells Blugrass will decide to
re-work first due to the expectation of lower costs initially such as
not paying for additional tubing and rods, as well as bypass any
costs associated with repairing any wells with potential casing
Additionally, environmental remediation has begun on these leases to
remediate approximately 12 wells that the New Mexico State Oil
Conservation Division deemed to be out of compliance. These
remediation's are expected to be completed within approximately 2-3
weeks whereby potentially satisfying all state requirements. The
majority of the out of compliance wells are typically associated with
stripper wells that were drilled decades previously that have had
either exhibited minor oil leaks from flow lines or from a leak via
the actual wellhead itself during a routine pump repair or work-over.
Further minor oil spills may occur from leaking stuffing boxes that
can accumulate significant asphaltines around the wellhead over
decades of production which could also potentially harm the
The reason why the company is focused on the immediate remediation of
these 12 wells is due to the fact that the State will not approve any
new drilling applications on these lease until such remediation is
deemed to be complete as well as it wishes to comply with all state
regulations as it would potentially foresee acquiring additional oil
and gas assets within the state of New Mexico.
Furthermore, we are currently focused on bringing online several of
the wells that are currently shut in, in order to capitalize on the
current price of crude. There is still much work to accomplish on
these assets prior to realizing any significant monetary gain but
based on offsetting well production and the extensive geological work
that we have performed to date, within the Artesia Vacuum trend, we
are very excited about this development plan on a go forward basis.
We expect numerous near term operational updates as there will be
much to report once the State approves the remediation project as
well as the expected positive results from the work-overs.
THIS NEWS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS," AS THAT TERM
IS DEFINED IN SECTION 27A OF THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED. STATEMENTS IN THIS NEWS RELEASE,
WHICH ARE NOT PURELY HISTORICAL, ARE FORWARD-LOOKING STATEMENTS AND
INCLUDE ANY STATEMENTS REGARDING BELIEFS, PLANS, EXPECTATIONS OR
INTENTIONS REGARDING THE FUTURE. EXCEPT FOR THE HISTORICAL
INFORMATION PRESENTED HEREIN, MATTERS DISCUSSED IN THIS NEWS RELEASE
CONTAIN FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO CERTAIN RISKS
AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS
EXPRESSED OR IMPLIED BY SUCH STATEMENTS. STATEMENTS THAT ARE NOT
HISTORICAL FACTS, INCLUDING STATEMENTS THAT ARE PRECEDED BY, FOLLOWED
BY, OR THAT INCLUDE SUCH WORDS AS "ESTIMATE," "ANTICIPATE,"
"BELIEVE," "PLAN" OR "EXPECT" OR SIMILAR STATEMENTS ARE
FORWARD-LOOKING STATEMENTS. RISKS AND UNCERTAINTIES FOR THE COMPANY
INCLUDE, BUT ARE NOT LIMITED TO, THE RISKS ASSOCIATED WITH OIL AND
GAS EXPLORATION AND DEVELOPMENT AND NEEDS FOR FUNDING AS WELL AS THE
RISKS SHOWN IN THE COMPANY'S MOST RECENT ANNUAL REPORT ON FORM 10-K
AND ON FORM 10-Q AND FROM TIME-TO-TIME IN OTHER PUBLICLY AVAILABLE
INFORMATION REGARDING THE COMPANY. OTHER RISKS INCLUDE RISKS
ASSOCIATED WITH THE REGULATORY APPROVAL PROCESS, COMPETITIVE
COMPANIES, FUTURE CAPITAL REQUIREMENTS AND THE COMPANY'S ABILITY AND
LEVEL OF SUPPORT FOR ITS EXPLORATION AND DEVELOPMENT ACTIVITIES.
THERE CAN BE NO ASSURANCE THAT THE COMPANY'S DEVELOPMENT EFFORTS WILL
SUCCEED AND THE COMPANY WILL ULTIMATELY ACHIEVE COMMERCIAL SUCCESS.
THESE FORWARD-LOOKING STATEMENTS ARE MADE AS OF THE DATE OF THIS NEWS
RELEASE, AND THE COMPANY ASSUMES NO OBLIGATION TO UPDATE THE
FORWARD-LOOKING STATEMENTS, OR TO UPDATE THE REASONS WHY ACTUAL
RESULTS COULD DIFFER FROM THOSE PROJECTED IN THE FORWARD-LOOKING
STATEMENTS. ALTHOUGH THE COMPANY BELIEVES THAT THE BELIEFS, PLANS,
EXPECTATIONS AND INTENTIONS CONTAINED IN THIS NEWS RELEASE ARE
REASONABLE, THERE CAN BE NO ASSURANCE THOSE BELIEFS, PLANS,
EXPECTATIONS OR INTENTIONS WILL PROVE TO BE ACCURATE. INVESTORS
SHOULD CONSIDER ALL OF THE INFORMATION SET FORTH HEREIN AND SHOULD
ALSO REFER TO THE RISK FACTORS DISCLOSED IN THE COMPANY'S PERIODIC
REPORTS FILED FROM TIME-TO-TIME WITH THE UNITED STATES SECURITIES AND
THIS NEWS RELEASE HAS BEEN PREPARED BY MANAGEMENT OF THE COMPANY WHO
TAKES FULL RESPONSIBILITY FOR ITS CONTENTS.
FINRA, THE SEC AND THE OTCBB NEITHER APPROVES NOR DISAPPROVES THE
CONTENTS OF THIS NEWS RELEASE. THIS NEWS RELEASE SHALL NOT CONSTITUTE
AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL
THERE BE ANY SALE OF THESE SECURITIES IN ANY JURISDICTION IN WHICH
SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO
REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH
Blugrass Energy Inc.
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