Horizon Industries Ltd.
TSX VENTURE : HRZ

Horizon Industries Ltd.

November 08, 2006 14:13 ET

Horizon Industries Ltd.: Funk #1 Well on Line and Selling Gas-Funk #3 and Funk #4 Tie in Underway-Funk #2 Prepared for Rig

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 8, 2006) - Horizon Industries Ltd. (TSX VENTURE:HRZ) is pleased to announce that tie in to sales of Horizon's Funk #1 well is now complete and the well is in production.

Gas sales from the Funk #1 well commenced on Friday November 3, 2006 with an initial flow rate of 300 mcf per day and flowing tubing pressure (FTP) of 875 psi. Flow was immediately pinched back bringing the flow rate to approximately 250 mcf per day. Since the well came on line, it has averaged daily flow rates of 250 to 260 mcf per day and is maintaining steady FTP of 865 psi. Production is from four feet of perforations at 2,020 feet to 2,024 feet within a 15 foot pay zone located at a depth of 2,018 feet to 2,033 feet.

Tie in operations continue at the Funk #4 and Funk #3 wells. It is now anticipated that the Funk #4 will be put on line by on or about November 9 and that the Funk #3 will be put on line by on or about November 10, 2006.

In addition, site preparation is also completed at the Funk #2 location. The Company has received confirmation that the drilling rig will be available for mobilization to Funk #2 within the next 2 to 3 weeks.

Horizon Industries Ltd. currently holds a 64% working interest in the Funk Prospect.

Funk Prospect

The Funk Prospect is located in the G. Barrera survey A-2 in Goliad County and consists of two tracts of land comprising 240 acres and 160 acres. The Funk Prospect is situated in the prolific Middle Yegua gas trend, a formation that has produced gas and condensate in the nearby Maetze Yegua, Perdido Creek and Jobar fields.

The Perdido Creek field, located one and a half miles northeast of the Funk Prospect. Perdido Creek hosts seven producing wells with cumulative production of approximately 3-4 BCF and 80,000 bbl. of oil and condensate from the Yegua sands. The best well in Perdido Creek, the Vrazel #1 produced 1.8 BCF and 30,000 barrels of oil and condensate from a 90' sand covering 36 acres. These Yegua sands appear to be similar to that underlying the Funk prospect which hosts 2D defined Yegua sand bodies of 35 to 50 acres in aerial extent.

The Maetze Field is located 3,500 feet to the southeast of the Funk lease. Total production from this field was approximately 5 BCF. The best well in this field, the Cron Dreier, drilled in the early 1950's blew out for over six months releasing up to 2 BCF of gas before being shut-in.

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. For more information, please visit www.horizonindustriesltd.com.

On Behalf of the board of directors,

Christopher Wensley, President

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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