SOURCE: Horizon Industries Ltd.

April 18, 2005 09:30 ET

Horizon Industries Provides Update on Production From Texas-Based Whatley #1 Well

Initial Production From Company's First Well Stabilizes at Commercial Levels

VANCOUVER, BC -- (MARKET WIRE) -- April 18, 2005 -- Horizon Industries Ltd. (TSX-V: HRZ), an emerging oil and gas exploration and development company, today announced an update on production from its Whatley #1 well, located in San Patricio County, Texas. Xeric Oil and Gas Corporation (Xeric), which manages day-to-day operations, confirmed that production from the Whatley #1 well has leveled out at 400 Mcf/d (thousand cubic feet of gas per day) and 15 barrels of oil per day (bopd), with a Forward Tubing Pressure (FTP) of 2,200 psi. The current prices for oil and gas are approximately $50 per barrel and $7 per mcf, respectively, making this well commercially viable.

"We are pleased that initial production from the lowermost gas zone in our Whatley #1 well has stabilized at commercial levels," said James D. Romano, President and Chief Executive Officer of Horizon Industries. "Our partner, Xeric, currently manages operations for more than 1,500 wells throughout Texas. Given their exceptional track record, we are confident they will maximize the production capability of this well. The establishment of this initial production will bring the company very close to a cash flow neutral position."

Production Report Summary

The reported production of 400 Mcf/d and 15 bopd, with FTP of 2,200 psi, is currently from a gas zone at 7,390 feet, which is a 9 foot gas zone over water in a 29 foot sand. Xeric is taking a prudent and methodical approach to exploiting the various zones encountered in this well, beginning with the lowermost zones to ensure the full exploitation of all potential reserves in the well.

Analysis of the downhole logs indicates that there are a total of nine zones from 5,490 feet to 7,640 feet with additional potential zones that may prove productive. Sidewall core analysis indicated good permeability and porosity confirming that production should be expected from these nine zones. Three lower zones appear to be gas and condensate bearing sands, while the six uppermost zones appear to be oil bearing sands. There are up to four additional development wells planned within the lease.

About Horizon Industries Ltd.

Horizon Industries Ltd. is an emerging oil and natural gas exploration company established to realize income growth by acquiring working interests in established oil and gas projects throughout North America. The Company is also engaged in researching and developing new oil and gas projects for syndication, exploration and exploitation. Horizon currently has production from the Whatley #1 well in San Patricio County, Texas, a 100 percent working interest in the Stewart Lease in Goliad County, Texas, as well as, a 20 percent working interest in the Manahuilla Creek Prospect in Goliad County, Texas. For more information, please visit

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

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