Lexington-based minnow Bluegrass Energy is teaming with 7921 Energy to develop about 5000 acres in the New Albany Shale in western Kentucky.
Independent research estimated the project 64 billion cubic feet of gas and 695,000 barrels of oil, all of which are classified as proven undeveloped.
In addition to the New Albany target zone, potential shallower oil and gas formations on the acreage could include the Ft. Payne, Warsaw, Jackson, McClowsky, O’Hara and Tar Springs, according to a Bluegrass release.
The company anticipates drilling wells to 3000 feet.
Now the two companies are putting a plan of development together, finalizing a long-term gas purchase agreement, and negotiating with other industry partners.
They hope to begin drilling later this year.

Source: Upstream

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