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

Friday, Feb 17, 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.

Source: Marketwire

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