Horizon Industries Ltd.
TSX VENTURE : HRZ

Horizon Industries Ltd.

November 04, 2005 13:51 ET

Horizon Industries Ltd.: Drilling Rig Mobilized to Stewart Prospect

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 4, 2005) - Christopher Wensley, President of Horizon Industries Ltd. (TSX VENTURE:HRZ), an emerging oil and gas exploration and development company, announces that the Company has received confirmation that the drilling rig was mobilized to the Stewart East prospect yesterday, November 3. Rigging up is underway and it is anticipated that the well will spud within the next several days.

The 272 acre Stewart East Property is located in Goliad County, Texas within the Jobar field. In late 1997, Edge Petroleum discovered the Jobar field, with production from the middle Yegua formation between 5300 and 5500 feet. There are 9 wells in the field which have produced to date a cumulative 5.894 Bcf (billion cubic feet) of gas, an average of 655 Mmcf (million cubic feet) per well. Average initial production was reported at 1,800 Mmcf per day with the best well producing 2,100 Mmcf per day. The field appears to be a series of isolated bar deposits trending in a north east/south west direction. The field was discovered using 2D seismic amplitude analysis. The well will test an amplitude anomaly based on Horizon's 3D seismic program conducted over the property.

The Company holds a 30% working interest in the Stewart prospect comprised of the Stewart East and the Stewart West properties covering approximately 544 contiguous acres. Horizon acquired total rights to both properties following analysis of 3D seismic data which indicated a deep target in the Wilcox formation. Gas and condensate was discovered by Chesapeake Energy Corporation in 2003 in the Marshall Field in the Middle Wilcox formation, which is located approximately 1.5 miles north of the Stewart lease. The Chesapeake Carmichael #1 well was put on production in December 2003 at an initial production rate of 5 MMCF/D and 50BBLS/MMCF/D condensate per day. As of April 2005, the well has produced 1.31 BCF of gas and 49,132 bbls of condensate. Subsequent to this discovery, Chesapeake has drilled several more wells into the Middle Wilcox on the Carmichael lease and the Bammert lease located north and east of the Stewart lease. All wells drilled are producing between 1 and 5 MMCF/D.

Santos Ltd. and Etoco extended the field to the south with a series of wells with the most prolific to date being the Eichman #1 well drilled and completed by Santos Ltd. in April 2005. The well tested at 21 MMCF/D with approximately 30bbls/MMCF condensate. This well has recently been put on stream reportedly producing in excess of 21 MMCF/D. Etoco Inc. is currently operating 1/2 mile to the north of the Stewart lease. The Heard #1 well was completed in January 2005 and tested at 8.9 MMCF/D with in excess of 50bbl./Mmcf condensate. The Heard #2 and #3 wells are currently being completed and no results are available at this time.

The Company is currently examining possible alternatives to test and develop the Middle Wilcox target at the Stewart Prospect.

About Horizon Industries Ltd.

Horizon Industries Ltd. is an emerging oil and gas exploration and production company building a high quality asset base in focused areas throughout the United States. The Company is currently developing strategic alliances in high impact oil and gas plays in Western Canada.

WARNING: The Company relies on litigation protection for "forward looking" statements. Actual results could differ materially from those described in the news release as a result of numerous factors, some of which are outside the control of the Company.


The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.

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