Parkland Energy Services Inc.
TSX VENTURE : PKE

August 24, 2009 18:09 ET

Parkland Energy Services Inc. Announces the Offer to Merge the Business and Assets of Blue Horizon Energy Inc. and Their Affiliated Companies

RED DEER, ALBERTA--(Marketwire - Aug. 24, 2009) - Parkland Energy Services Inc. ("the Company" / "Parkland") (TSX VENTURE:PKE) announced today that the Company has entered into a Letter of Intent ("the LOI") to merge the business and assets of Blue Horizon Energy Inc. and their affiliated companies. The companies will enter into a business combination by way of an amalgamation, arrangement, takeover bid, share purchase or share exchange agreement or other similar form of transaction (the "Merger").

At this stage it is expected that the Merger will take place through a share exchange agreement which will require shareholder approval by the shareholders of Parkland. However, the most appropriate means of effecting the Merger will be determined in due course by agreement among the parties, each acting in a commercially reasonable fashion, after a review of all of the relevant facts.

The estimated merger value of Blue Horizon Shares is $6,000,000.00. It is estimated that a total of 30,000,000 PKE Shares will be issued in exchange for all the Blue Horizon shares and convertible securities.

Parkland is a company based in Red Deer, Alberta that specializes in the manufacturing of separator packages, metering skids, production tanks, and pressure vessels, and the provision of sandblasting, painting, coating, welding and fabrication services, The Common shares are listed on the TSX Venture Exchange and trade under the symbol "PKE".

Blue Horizon Energy Inc.'s main business is Exploration and Production. They lease 9000 acres of Oil sands from the Alberta government. The company also has two subsidiaries, Blue Horizon Bio-Diesel Inc and Blue Horizon Ethanol Inc. Both of these companies are working on the development of renewable energy refineries.

Gordon Hillman Acting President and CEO of Parkland stated "We are very pleased with this transaction which we are confident will quickly result in the creation of a significant increase in value for all of Parkland Energy's shareholders."

Forward-Looking Statements

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements.

Forward-looking statements relate to future events or future performance and reflect management of the Company's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of hydrocarbon reserves and resources, the realization of reserve and resource estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of drilling and development operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of hydrocarbon resources; production or recovery rates; accidents, Labour disputes and other risks of the oil and gas industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward-looking statements.

TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Parkland Energy Services Inc.
    Allan Slobodian
    CFO
    (403) 346-8119
    Email: allan.slobodian@parklandenergy.com
    or
    Parkland Energy Services Inc.
    Bay B, 310, 28042 Hwy 11
    Burnt Lake Business Park
    Red Deer County, AB., T4S 2L4
    or
    Blue Horizon Energy Inc.
    Don Allan
    President and CEO
    (403) 340-0864 x224
    Email: donallan@blue-horizon.ca
    or
    Blue Horizon Energy Inc.
    Suite 201, 4811 - 48 St
    Red Deer, AB., T4N 1S6