According to the company, the land position is geologically on trend with several giant natural gas fields currently under production by major oil and gas companies.
The acquisition of the lease, representing an 87.5% working interest, includes full access to complete 3D seismic imaging of the lands under lease.
Using this seismic imaging, a team of geophysicists has identified a number of drilling locations in the Canyon Sands, Strawn and Ellenburger formations, the company said.
Acquisition of the lease also includes an option to participate as a working interest partner in drilling programs sponsored on an additional 9,850 acres.
Located in close proximity to the Blugrass lease, this acreage has also benefited from complete 3D seismic imaging underwritten by Texas-based Petro Grande, which holds the additional acreage.
Blugrass CEO Abram Janz said that with the closing of this acquisition, Blugrass is poised to move forward with a scaled drilling and development program to explore the Canyon Sands, Strawn and Ellenburger formations.
"We view this drilling program to be a resource play, since the Canyon Sands and Strawn formations in particular, are highly productive in the area of the lease," Janz said.
