The assets include nearly 90 producing wells, and the minority ownership interest ranges from 2% to 7% per well.
Several nationally-renowned operating companies will manage the properties under lease.
The assets currently generate in the range of $400,000 monthly revenue for the owner of the minority interest.
The letter of intent is non-binding and the proposed acquisition will be subject to normal contingencies, including valuation of the properties and financing.
Blugrass Energy anticipates funding the proposed acquisition and its future development efforts in part, with a combination of traditional bank financing, plus other financing to be arranged through its investment banking professionals.
