Blugrass Energy Update on Cave Pool Operations
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 leaks.
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 environment.
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 EXCHANGE COMMISSION.
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Contact: Blugrass Energy Inc. Tony Collins 1-877-511-0110