Blue Horizon Industries Inc
CNSX : BH

Blue Horizon Industries Inc

February 15, 2012 09:23 ET

Blue Horizon Secures Partner at Normandville Alberta to Drill A Multi-Leg Horizontal Well

RED DEER, ALBERTA--(Marketwire - Feb. 15, 2012) - Blue Horizon Industries Inc. ("Blue Horizon" or the "Corporation) (CNSX:BH) announces that its wholly-owned subsidiary, Blue Horizon Energy Inc. ("Blue Horizon Energy" or "the Company"), has entered into a Farmout Agreement with an industry partner ("the Farmee") pursuant to which the Farmee will farm-in on the Company's 50% interest in its 14 contiguous section Normandville Oil Sands Property. The Farmee will pay 100% of Blue Horizon Energy's proportionate share of the costs associated with drilling, completing and or abandoning a two leg horizontal well ("the Test Well") that will test the Bluesky-Gething formation and ascertain if the formation will cold flow produce.

Before Payout of the Test Well the Farmee will earn 100% of Blue Horizon Energy's 50% interest in the Test Well spacing unit subject to the payment to the Company of a proportionate share of a standard Overriding Royalty which will revert at Payout to an undivided 40% working interest in favour of the Company. In addition Blue Horizon Energy will assign an undivided 10% interest in the balance of the 14 section Normandville Property to the Farmee.

Clint Melnechenko, Vice President Operations of Blue Horizon Energy states "We are currently working on securing a drilling rig with the goal to drill and complete the Test Well before spring break-up and road bans are implemented. In the event we are able to prove that our property can be cold flow produced the overall value of our Normandville Property will be significantly increased in value.

About Blue Horizon Industries Inc.

Blue Horizon Industries Inc. is a diversified industrial company that 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 bidding on new dismantling contracts, while BH Energy is exploring for oil and gas in Western Canada having participated in 4 test wells in 2011. BH Mining has entered into a Letter of Intent to be acquired by Cayenne Gold Mines Ltd. 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 Corporation's disclosure documents on the SEDAR website at www.sedar.com. The Corporation 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