The Blue Horizon refinery will be built in several phases (to a total of 200,000 barrels per day) to accommodate increasing bitumen production in the Peace River oil sands area. The first phase is planned for 50,000 barrels per day and to be completed in 2012. As a merchant bitumen-based upgrader and refiner, PRO will purchase bitumen feedstock from PROR and other Peace River oil sands producers at market prices. The bitumen will be upgraded and refined into petroleum products that will be sold at market prices.

PROR will develop its own resource base by aggressively pursuing bitumen-rich properties. Assets will be acquired through grass roots exploration, partnering with other regional operators and through the outright purchase of high quality properties. Peace River Oil has given PROR the mandate of securing up to 30% of the required bitumen feedstock for the Blue Horizon refinery.

Following an initial technical evaluation of the oil sands core area, PROR purchased the rights to 9,000 acres in two oil sands leases at Normandville. An initial assessment reveals in-place crude bitumen reserves to be in excess of 100 million barrels on the property.

Expanding this asset base will play a key role in meeting the business objectives of PROR. Future growth opportunities will be examined for both value and strategic merit. Developing business relationships with other regional stakeholders will assist this business strategy, which may be further augmented by aligning with companies historically not involved with the Peace River oil sands area, particularly if innovative technologies can be added to the project.

The company will endeavour to leverage the spirit of a smaller organization, with experienced leadership and recognized industry professionals, to become a growth-oriented and profitable organization and important ally to PRO and the Blue Horizon refinery.