Horizon Industries Ltd.
TSX VENTURE : HRZ

Horizon Industries Ltd.

August 30, 2007 13:26 ET

Horizon Sets Number of Shares to Be Issued in Respect of Acquisition of New Waverly Prospect

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 30, 2007) - Further to Horizon Industries Ltd.'s (Horizon) (TSX VENTURE:HRZ) news release dated August 22, 2007, in which Horizon announced it had completed the acquisition of a 37.5 % working interest in an additional 2,700 acres at the New Waverly prospect, the Company announces that the number of shares to be issued against the final payment of consideration for this acquisition has been set.

Horizon has paid US $78,750 cash consideration and will issue 200,000 shares in the capital stock of Horizon Industries Ltd. to Pan American Production Company, Inc. ("Pan American") or its nominee, at a deemed price of CDN $0.25 per share in respect of this acquisition. In addition, upon the successful completion of six wells on the prospect lands, Horizon will pay further consideration to Pan American equaling US $60,000. This sum will be paid in the capital stock of Horizon at a deemed price of CDN $0.35 per share totaling 180,000 shares, subject to approval by the TSX Venture Exchange. This consideration will be payable after successful completion and tie in to sales of six producing wells on the prospect lands.

Pan American is the operator of the New Waverly Prospect and has successfully completed drilling of the first of up to 40 prospective wells in the shallower Vicksburg formation. The Hammond #1 well will be tied into sales upon acquisition of an existing tie-in and production facility on adjoining lands, which is expected to conclude within the next several days. Sales line installation is currently underway. It is anticipated that an independent four point flow test will be conducted and the well turned to sales within two weeks. Geologic evidence also supports prospectivity in the deeper Yegua, Cook Mountain, and Wilcox formations.

The Company has also granted 50,000 stock options to a consultant at an exercise price of $0.33 per share. The options shall vest quarterly and have a term of two years.

Pan American Production Company, Inc.

Pan American is an oil and gas production company specializing in low risk oil and gas prospects where opportunity exists to generate high return through production enhancement and application of exploration techniques. Pan American currently holds production and prospects covering approximately 30,000 acres in Texas.

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.

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

  • First Canadian Capital Corp.
    Investor Relations Enquiries
    Toronto, ON
    (416) 742-5600 or Toll Free (866) 580-8891
    or
    Freeform Communications
    Investor Relations Enquiries
    Vancouver, BC
    (604) 288-7222
    or
    Princeton Research Corporation
    Investor Relations Enquiries
    Las Vegas, NV
    (702) 650-3000
    Email: mike@princetonresearch.com
    or
    Horizon Industries Ltd.
    Christopher Wensley
    President
    (604) 488-3900
    Email: info@horizonindustriesltd.com or
    Website: www.horizonindustriesltd.com