RED DEER, ALBERTA--(Marketwire - Aug. 24, 2009) - Parkland Energy Services Inc. ("the Company" / "Parkland") (TSX VENTURE:PKE) announced today that the Company has entered into a Letter of Intent ("the LOI") to merge the business and assets of Blue Horizon Energy Inc. and their affiliated companies. The companies will enter into a business combination by way of an amalgamation, arrangement, takeover bid, share purchase or share exchange agreement or other similar form of transaction (the "Merger").
At this stage it is expected that the Merger will take place through a share exchange agreement which will require shareholder approval by the shareholders of Parkland. However, the most appropriate means of effecting the Merger will be determined in due course by agreement among the parties, each acting in a commercially reasonable fashion, after a review of all of the relevant facts.
The estimated merger value of Blue Horizon Shares is $6,000,000.00. It is estimated that a total of 30,000,000 PKE Shares will be issued in exchange for all the Blue Horizon shares and convertible securities.
Parkland is a company based in Red Deer, Alberta that specializes in the manufacturing of separator packages, metering skids, production tanks, and pressure vessels, and the provision of sandblasting, painting, coating, welding and fabrication services, The Common shares are listed on the TSX Venture Exchange and trade under the symbol "PKE".
Blue Horizon Energy Inc.'s main business is Exploration and Production. They lease 9000 acres of Oil sands from the Alberta government. The company also has two subsidiaries, Blue Horizon Bio-Diesel Inc and Blue Horizon Ethanol Inc. Both of these companies are working on the development of renewable energy refineries.
Gordon Hillman Acting President and CEO of Parkland stated "We are very pleased with this transaction which we are confident will quickly result in the creation of a significant increase in value for all of Parkland Energy's shareholders."
Forward-Looking Statements
This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995.
