Horizon Industries Ltd.

Horizon Industries Ltd.

December 19, 2006 12:09 ET

Horizon Industries Ltd.: Funk #2 Well to Spud This Week

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 19, 2006) - Horizon Industries Ltd. (TSX VENTURE:HRZ), is pleased to announce that the drilling rig assigned to the Funk #2 well has completed its current project and is now preparing to move to the Funk Prospect.

The Company has been informed that Edde Drilling of Victoria, Texas has scheduled the drilling rig to be released to the Funk prospect tomorrow and is planning to spud the Funk #2 well by on or about Saturday, December 23, 2006. Drilling of the Funk #2 is planned for a total depth of 6,000 feet to test a high amplitude 3D anomaly in the Middle Yegua formation, located between 5,500 and 5,700 feet. The Funk #2 is expected to take eight to ten days to drill. Logging will occur immediately upon reaching total depth, likely very shortly after New Year's.

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.

Contact Information