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Blugrass Energy, Inc. and Quad Energy Corp Execute LOI to

Blugrass Energy, Inc. and Quad Energy Corp Execute LOI to Acquire 60%
Working Interest in Blugrass Energy Inc.'s Eddy County Oil and Gas
Properties 
CALGARY, AB -- (Marketwire) -- 12/07/10 --   Blugrass Energy, Inc.
(OTCBB: BLUG) and Quad Energy Corp have entered into a letter of
intent to acquire a 60% working interest in Blugrass Energy Inc's
Cave Pool Unit oil and gas properties. The working interest of
Blugrass Energy's properties covers approximately 2800 acres, located
within Eddy County, NM. Currently there are 32 wells, which could be
re-worked and brought back potentially to producing status.
Additionally, there are over 100 possible new drilling locations
based upon 20 acre spacing. Water disposal would be handled via the
Cave Pool Unit's injection well which decreases water hauling costs
thus increasing the economics of the Cave Pool Unit. 
The Cave Pool Unit is located within the Artesia Vacuum Trend, more
specifically within the Grayburg Jackson Pool. The Artesia Vacuum
Trend contains thirteen reservoirs with more than 1 MMBO historic
cumulative production. Cumulative production from these 13 reservoirs
was 796 MMBO as of 2000. Depths to the top of reservoirs range from
1290 to 4700 ft. This is a mature field, especially within the highly
productive San Andres carbonates. Lower permeability in the Grayburg
sandstones, in the Grayburg Jackson reservoir during the mid-1990's,
has been successful to the point of reversing production decline and
is a major focus of current and future development. 
Under the terms of the LOI Quad Energy would pay up to $500,000 for
Blugrass' 60% working interest in the Cave Pool Unit. 
The Quad Energy is undertaking due diligence and will announce the
signing of a definitive agreement in the event that one is signed. 
Safe Harbor Act Notice:
 Statements contained herein that are not
historical facts are forward-looking statements within the meaning of
the Securities Act of 1933, as amended. Those statements include
statements regarding the intent, belief or current expectations of
the company and its management. Such statements reflect management's
current views, are based on certain assumptions and involve risks and
uncertainties. Actual results, events, or performance may differ
materially from the above forward-looking statements due to a number
of important factors, and will be dependent upon a variety of
factors, including, but not limited to, the company's ability to
obtain additional financing and the demand for the company's
products. Any investment in the company would be extremely
speculative and involve a high degree of risk and should not be
pursued unless the investor could afford to lose their entire
investment. Before investing, please review this filing, all past
public filings with the SEC, all current Pinksheets.com filings and
consult a registered broker dealer or contact the financial industry
regulatory authority ("FINRA") for more information regarding
locating a qualified party to assist in making an investment
decision. The company undertakes no obligation to publicly update
these forward-looking statements to reflect events or circumstances
that occur after the date hereof or to reflect any change in the
company's expectations with regard to these forward-looking
statements or the occurrence of unanticipated events. Factors that
may impact the company's success are more fully disclosed in the
company's most recent public filings with the U.S. Securities and
Exchange Commission. Forward-looking statements are typically
identified by the use of terms such as "anticipate," "believe,"
"could," "estimate," "expect," "intend," "may," "might," "plan,"
"predict," "project," "should," "will," and similar words, although
some forward-looking statements are expressed differently. Although
we believe that the expectations reflected in such forward-looking
statements are reasonable, we can give no assurance that such
expectations will prove to be correct 
About Blugrass:
 Blugrass Energy Inc. is a development stage 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. 
Contact:
Blugrass Energy Inc.
Tony Collins 
1-877-511-0110 
 
 
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