The past several weeks have been busy for Don Allan — and it appears the future holds more of the same.
Blue Horizon Industries Inc., of which Allan is president and CEO, announced on Monday that it has struck a deal to buy the oil and natural gas rights to 4,160 acres in Northern Alberta and Manitoba.
That news comes less than three weeks after the Red Deer-based company was created from the amalgamation of its predecessor Blue Horizon Energy Inc. with MLB Industries Inc. of Lethbridge, and five days after the new company began trading on the Canadian National Stock Exchange under the symbol CNSX:BH.
Now, Blue Horizon subsidiary Blue Horizon Bio-Diesel Inc. is poised to commence work on a state-of-the-art bio-refinery near Edmonton.
“We’re going to start construction this month,” said Allan, adding that he expects the plant to be operational by next June.
To be located at Bruderheim, the refinery will process not only bitumen but also used oil and cellulosic materials.
“It can be municipal waste, it could be wood chips, it could be newspaper — basically, as long as it’s cellulose fibre, that’s what we’re looking to mix with our oil.”
The plant will need relatively little power and water, and won’t produce a lot of greenhouse gas, said Allan.
“We’re going to be one of the greenest refineries ever built in Canada,” he continued, adding that the technology is proven.
“There are already plants working like this throughout the world, so we don’t see a lot of reason why we won’t be going commercial almost immediately.”
Ultimately, Blue Horizon plans to fabricate other similar plants on site and sell them to customers throughout the world.
In the meantime, Blue Horizon has its fingers in other ventures. Its Blue Horizon Contracting division dismantles industrial plants and related facilities; and Blue Horizon Mining Inc., in which Blue Horizon has a 74 per cent interest, is involved in two early stage mining projects in British Columbia.
Another subsidiary, Blue Horizon Energy Inc., was behind the deal to acquire the Alberta and Manitoba petroleum land rights: 3,840 acres near Rainbow Lake in Northern Alberta and 320 acres at Waskada, Man. The closing date is Oct. 13, with the $700,000 purchase price to be paid by way of Blue Horizon shares and share purchase options, and other consideration.
“We’re going to drill our first hole, and hopefully two holes, in November in Manitoba,” said Allan. “And we’re going to start evaluation immediately on the drilling potential for Rainbow Lake.”
Drilling on the latter property, he said, should be underway before spring breakup.
“Both are phenomenal pieces of land.”
Allan is optimistic these and other developments will keep investor interest in Blue Horizon shares high.
“So far, it’s gone really well. We’re very pleased with the volume that’s trading right now.”
hrichards@www.reddeeradvocate.com
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