Horizon Industries Ltd.
TSX VENTURE : HRZ

Horizon Industries Ltd.

October 31, 2006 11:01 ET

Horizon Industries Ltd.: Two Additional Wells to go into Production at Funk Prospect

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 31, 2006) - Horizon Industries Ltd. (TSX VENTURE:HRZ), is pleased to announce that the Company's agent, Dirnett, Inc., has received documentation confirming change of operator of the Geogoliad #3 and Geogoliad #4 wells situated on the Funk Prospect in Goliad County, Texas. The Company is now completing work over and repair operations to bring these two wells online to sales.

Inspection of the wells this past summer revealed blockage after which clean up was commenced. Following this work, the Geogoliad #3 well had shut in pressure of 900 psi and flowed gas at the rate of 50 mcf per day while unloading fluids. The Geogoliad #4 well had shut in pressure of 1125 psi and flowed gas at the rate of 180 mcf per day while unloading fluids. The Company intends to put these wells to sales by on or about November 3, 2006 and believes that these flow rates may improve as the balance of work related fluids are removed from the wells.

Logs from the wells indicate the presence of multiple up hole pay zones which have not been developed and are believed to have prospective reserves behind pipe. This assessment is supported by Horizon's 3D data set over the lease. Preparations will also commence to perforate these up hole zones once the current zones are depleted. The Geogoliad #3 and #4 wells will be renamed the Funk #3 and the Funk #4 wells.

Installation of the new sales pipeline commenced as scheduled on October 29 and the Funk #1 Well remains on schedule to tie in to sales on November 1, 2006. This brings to three the total number of wells to be tied in to sales this week.

Horizon Industries Ltd currently owns a 79% 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