Blue Horizon Industries reports that its wholly-owned subsidiary, Blue Horizon Energy Inc., has completed the analysis of the wellbore data and core samples obtained from the Company's previously announced three well strat drilling program conducted on its Normandville Oil Sands Property. The encouraging results from the analysis has resulted in the Company proceeding immediately with the planning of a horizontal multi-leg lateral well with the objective of demonstrating cold flow production.

Blue Horizon Energy owns a 50% work interest in the 14 sections comprising the Normandville Oil Sands Property where one well was cased and completed and the other two wells were drilled, cored and plugged for possible future re-entry as multi-leg horizontal wells. Based on the seismic and core evaluation as well as an extensive logging program, Blue Horizon Energy has now confirmed that there is a theoretical possibility for "cold flow production" to occur. The possibility for cold flow production is based on the majority of the viscosity and API values landing within range to allow cold flow production to occur through a horizontal wellbore.

Cold flow production is dependent on in situ viscosity. Based on log analysis there is a differentiation of "extra heavy" and "visible heavy" oil. This represents a 50/50 split in the 105/16-19-79-22W5 strat well. The aggregate oil viscosity for the reservoir with "cold flow" potential had the majority ranging from 10000cP to 100000cP. These values, once in situ viscosity is confirmed, are analogous to other producing properties in the region which range from 50 to 100 bbl oil per day cold flow with horizontal wellbores. All three wells confirmed porosity values of 17 to 32% and gross pay intervals of 15 to 23 meters with the majority of the pay being continuous.

Tags: Blue Horizon Industries Inc.