Horizon Industries Ltd.
TSX VENTURE : HRZ

Horizon Industries Ltd.

December 07, 2006 12:58 ET

Horizon Industries Ltd.: Funk #1 Yields Strong First Month Production

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 7, 2006) - Horizon Industries Ltd. (TSX VENTURE:HRZ), is pleased to provide a production update from Horizon's Funk #1 well.

As previously announced in the Companies news release of November 8, 2006, gas sales from the Funk #1 well commenced on Friday, November 3, 2006. Production from this well for the month of November totaled approximately 7.7 million cubic feet with average daily flow rates of 285 Mcf per day on an 8/64ths choke. The well maintained strong pressure throughout the month with average FTP of 828 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.

Horizon President, Chris Wensley states, "We are very pleased with the performance of this well. These production results combined with maintenance of flow tubing pressure indicate the presence of a substantial reservoir. This gives us a high degree of confidence with regards to our imminent drilling of the Funk #2 well and in the development of other prospective 3D seismic targets within the Funk Prospect and surrounding area. It also supports our strategy to identify and pursue low risk, high return prospects."

The Company has been informed that the Funk #2 well remains next in line for a drilling rig. The rig is currently on another well and is expected to be released within 5 to 7 days at which time, operations will commence on the Funk #2 well. The drilling contractor is Edde Drilling of Victoria, Texas.

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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