Blugrass Energy, Inc. report that the Company is in discussions to acquire substantial oil and gas production and accompanying cash flow from a privately held company. The acquisition under discussion would require shareholder authorization – including approval of a charter amendment to accommodate the issuance of additional shares of common stock – and would also require that a significant portion of the Company's debt be converted to equity.

In tandem with the acquisition under discussion, the Company has reached an agreement in principle to convert a majority of its outstanding debt, including a $3,500,000 note, to shares of common stock.

Commenting on these developments, CEO Abram Janz stated: "A significant reduction in our debt, accompanied by an influx of productive resources, would mark a major milestone in the Company's resource development plan."

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