Blue Horizon Industries Inc
CNSX : BH

Blue Horizon Industries Inc

August 20, 2012 10:49 ET

Blue Horizon Announces Sale of Working Interest in Waskahigan & Amendment to Previous Agreement at Normandville & Haro

RED DEER, ALBERTA--(Marketwire - Aug. 20, 2012) - Blue Horizon Industries Inc. ("Blue Horizon" or the "Corporation") (CNSX:BH) announces that its wholly owned subsidiary, Blue Horizon Energy Inc. ("BH Energy"), has sold an additional 2% working interest in the Waskahigan oil assets (the "Working Interest") to an arm's length third party ("the Purchaser"). The Corporation received $65,000 cash as consideration for the Working Interest.

Originally, BH Energy held a 15% undivided working interest, and then on June 8th, 2012 announced the sale of a 3% working interest for proceeds of $ $97,500 together with an option in behalf of the Purchaser, wherein the Purchaser retained the right to exercise the option for the remaining 12% working interest for further consideration of $390,000.

Under the amended terms of agreement, the Purchaser has the irrevocable right to purchase the remaining 10% working interest in the Waskahigan asset for a period of 45 days from August 5, 2012.

The Corporation still retains ownership of a 10% working interest (subject to the option held by the Purchaser pursuant to the amended agreement) in 160 acres in the Waskahigan Area of Central Alberta. To date, a 2,200 m test well with a 500 m horizontal section targeting the Dunvegan B Formation has been drilled, cased and fraced. The well is scheduled to be placed on production in the third quarter of 2012. The Corporation is the operator of this well.

The Corporation also announces an amendment to the Purchase and Sale Agreement ("PSA") that was announced May 31, 2012 ("Normandville and Haro PSA"). The Corporation had entered into an agreement to sell working interests in two oil assets held by BH Energy to an arm's-length purchaser. The Corporation agreed to sell an undivided 30-per-cent working interest in its Northern Alberta heavy oil property referred to as the Normandville property. In the same transaction agreement, the Corporation agreed to sell its 100 per cent working interest in the Haro prospective property. The Normandville and Haro PSA expired in its original form, and under the terms of the amended agreement, it is expected to close on or before August 31st, 2012.

Don Allan, President, and CEO of Blue Horizon states, "We are driven to move this project to the next stage and pleased that we have an active partner in this endeavor. Our goal is to get the oil well flowing, to produce a steady cash-flow."

About Blue Horizon Industries Inc.

Blue Horizon Industries Inc. is a diversified industrial company with a four-fold strategic focus. The Corporation operates through three subsidiary companies; Blue Horizon Bio-Diesel Inc. - 100% owned ("BH Bio-Diesel"), Blue Horizon Energy Inc. - 100% owned ("Blue Horizon Energy") and Blue Horizon Mining Inc. - 74% owned ("BH Mining"). Blue Horizon Contracting ("BH Contracting") and BH Energy are wholly-owned divisions of Blue Horizon Energy. BH Contracting is currently working with BH Bio-Diesel on possible dismantling and reassembly of a pilot plant and future building of bio-diesel plants, while BH Energy is exploring for oil in Western Canada having participated in 4 test wells in 2011. BH Mining is advancing two mining projects in British Columbia and BH Bio-Diesel has an exclusive sub-license agreement to build green bio-diesel plants in Canada. The shares of the parent company, Blue Horizon Industries Inc., are listed to trade on the Canadian National Stock Exchange ("CNSX") under the symbol BH.

This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at www.sedar.com. The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Neither the Canadian National Stock Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian National Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Blue Horizon Industries Inc.
    Donald Allan
    President & CEO
    (403) 340-0864