U.S. Markets closed

Blugrass Board of Directors Resets Record Date; Drilling Plans Announced

DALLAS, TX--(Marketwire - 03/22/11) - Blugrass Energy Inc. (Pinksheets:BLUG - News) (Pinksheets:BLUG - News), currently doing business as Rio Grande Petroleum Inc., today announced that the Board of Directors has delayed by 10 days, the record date for a 5-to-1 reduction in the number of shares of the company's authorized common stock, and a corresponding 5-to-1 decrease in the number of issued and outstanding shares of the company's common stock.The record date for the share reduction has been reset for Friday April 1st.As we noted earlier, we believe this to be in the best interest of the company's stockholders, and consistent with our long-term plans of moving the Company to a point of higher visibility within the investment community.The company also announced plans to drill its first deep natural gas well this summer, targeting the Ellenburger formation on the company's newly-acquired lease acreage in Crockett County, Texas. Upon confirmation of funding, the company will make a further announcement setting a firm date for the drilling effort.CEO Mr. Janz commented, "We are very fortunate -- with the 3D seismic work that has been completed on the entire acreage position, and the excellent pipeline infrastructure nearby, the company has the liberty to focus exclusively on its drilling and financing plans."We invite you to visit the company's website at www.riograndepetroleum.com.FORWARD-LOOKING STATEMENTS SAFE HARBORThis 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.