Blugrass Announces Effectiveness of Reverse Stock Split

           Blugrass Announces Effectiveness of Reverse Stock Split

  PR Newswire

  DALLAS, May 16, 2011

DALLAS, May 16, 2011 /PRNewswire/ -- Blugrass Energy Inc. (OTC.BB: BLUG -
News), currently doing business as Rio Grande Petroleum Inc., today announced
that the Company received approval from the Financial Industry Regulatory
Authority ("FINRA"), clearing the 5-to-1 reverse stock split previously
approved by the Board of Directors and announced on March 18, 2011.

According to FINRA's approval, the reverse split will take effect at the open
of business on May 17, 2011. On that effective date, the Company's trading
symbol will be changed from "BLUG" to "BLUGD" for 20 business days, after
which the Company's trading symbol will revert to BLUG. The Company's common
stock will trade under a new CUSIP number, 09623H209.

As a result of the reverse split, the number of authorized shares of the
Company's common stock has been reduced, from 500,000,000 shares to
100,000,000 shares. Also as a result of the reverse split, each five shares
of the Company's common stock issued and outstanding on the effective date
will represent one share of the Company's common stock. Fractional shares
existing as a result of the reverse split will be rounded up to the nearest
whole share.

All records of the Company's transfer agent, Holladay Stock Transfer, will be
updated to give effect to the reverse split. Holladay Stock Transfer will
provide instructions to stockholders relating to the issuance of book-entry
evidence of ownership to give effect to the reverse stock split, and
instructions as to the issuance of new stock certificates. Stockholders whose
certificates are held in "street name" or on deposit with their brokerage
firm, as part of the DTC system, will be automatically adjusted on the same
basis.

The reverse stock split is intended to increase the per share trading price of
the Company's common stock, which should make it more attractive to a broader
range of institutional and other investors.

INVESTOR CONTACTS: Abram Janz, President & CEO
                   Blugrass Energy Inc.
                   Tony R. Collins Investor Relations
                   877.511.0110

We invite you to visit the company's website at www.riograndepetroleum.com .

FORWARD LOOKING STATEMENTS SAFE HARBOR

This news release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements give our current
expectations or forecasts of future events. They include our plans to drill
oil and gas wells on the lease lands in a search for economically recoverable
reserves. Actual results could differ materially as a result of a variety of
risks and uncertainties. See the description of risks related to our business
in the documents that the company files with the SEC on Forms 10-K, 10-Q and
8-K. We caution you not to place undue reliance on our forward-looking
statements, which speak only as of the date of this news release, and we
undertake no obligation to update this information.

Further information will be available on the company's website, where the
company will routinely post announcements, updates, events, investor
information and presentations, and all recent press releases.

SOURCE Blugrass Energy Inc.

Website: http://www.riograndepetroleum.com
 
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