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Re: News Releases - Monday, May 14, 2007
HORIZON ACQUIRES SIGNIFICANT WORKING INTEREST IN HIGH IMPACT
PROSPECT IN SOUTHEAST TEXAS
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VANCOUVER, British Columbia -- May 14, 2007 -- Horizon Industries Ltd.
(TSXV:HRZ), is pleased to announce that it has entered into a Joint
Venture agreement to participate with Pan American Development Company,
Inc, in a drilling program in San Jacinto County, Texas, approximately
50 miles north of Houston, Texas. Through the Company's wholly owned
subsidiary, Horizon Industries (USA), Ltd., Horizon has acquired a 25%
working interest in the initial phase of the prospect with an option to
acquire up to 37.5% working interest in the balance of the prospect
currently comprising a total of 3,100 acres (75% net revenue interest).
The initial phase calls for the development of 400 acres of Jackson
sands at a depth of approximately 2,800 feet. Drilling of up to five
wells is contemplated on the initial 400 acres, with reserve potential
of one to two Billion Cubic Feet ("BCF") of gas from the sand at 2,800
feet. The acreage may also host a second gas charged Jackson sand at
approximately 3,100 feet based on logs from nearby wells. No reserves
have been assigned to this stratigraphic trap, but the sand has
produced gas in several wells in the immediate area. There is
geological evidence for an additional 40 locations on existing
leasehold and the possibility for even more (up to 80) potential
locations if the geologic model associated with this prospect is
accurate.
Pan American Production Company, Inc.'s president, Mr. Denver Gartner
is quoted, "It is exciting for a play to incorporate both low risk
development drilling, and significant exploratory upside. A second
phase may expand the play from its current 3,100 acres, to over 6,500
acres. Associated with the two potentially productive Jackson sands,
excellent Yegua, Cook Mountain, and Wilcox producing formations exist
in the area." North of the Companies' acreage, the lower Jackson has
produced in excess of 1.8 BCFG from a Jackson well at less than 3,000
feet. The Yegua has produced in excess of 1.5 BCFG from a 4,000 foot
well. Furthermore, a nearby 5,000 foot Cook Mountain well has produced
over .75 BCF and over 4 BCFG was produced from a normally pressured
Wilcox well (under 12,000 feet depth). The prospect area is also on
trend with the Double A Wells Field in Polk County which has produced
to date in excess of 387 BCFG and 18 million barrels of oil. All these
formations are legitimate targets in the prospect area. There is
drilling activity currently under way targeting each formation, on
trend to this prospect.
The exploration and development plan calls for development of the
initial 400 acres, and subsequent acquisition of additional existing
2-D seismic. This initial seismic acquisition will cover a one hundred
square mile area and begin the process of exploring for all the other
exploration targets that the Companies envision developing. Should the
geological model for this prospect be accurate, exploration potential
for the Jackson, Yegua, Cook Mountain, Wilcox, and Woodbine formations
could achieve recoverable reserves similar to the Double A Wells Field.
The operator, Pan American Production Company Inc. was founded by Mr.
Larry Hargrave, CEO and Mr. Denver Gartner, President, geologists with
34 years and over 30 years of industry experience respectively.
Earlier in his career, Mr. Hargrave was chief geologist for Damson Oil
in the Rocky Mountains, where he supervised the geology, drilling and
development of several thousand wells in Montana. In addition, Mr.
Hargrave has designed and installed significant gas gathering systems
in South Texas as well as vapor recovery systems in gas condensate
reservoirs in Siberia. Utilizing his extensive drilling, and downhole
experience, Mr. Hargrave has been very successful not only in new
completions but also in identifying bypassed potential production,
reentering, and reengineering well bores and surface facilities to
develop and improve net cash flows.
Mr. Gartner brings a wealth of experience developing prospects in the
high risk, high potential Lower Cretaceous trends, such as the Woodbine
formation, the Edwards shelf edge, the Sligo shelf edge, and West Texas
Devonian. Mr. Gartner has generated over a dozen 100 BCF prospects.
Most of these have been sold to major oil companies such as Amerada
Hess, Pennzoil, and Transco among others. Mr. Gartner and partners
participated in a 100 BCF discovery in Chocolate Bayou Field in
Brazoria County, Texas. In the late 1980's and 1990's, Mr. Gartner's
focus shifted to include shallower, seismic amplitude and stratigraphic
plays in the Yegua , James Lime, Miocene and Frio formations resulting
in discoveries in Wharton, Lavaca and Maverick Counties.
This union of strong, diverse geological backgrounds and skill sets has
created a highly successful company combining geophysical exploration
with sound geological engineering. Pan American specializes in
identifying areas where initial risk is low, yet the opportunity to
apply exploratory techniques to create significant high potential
exists. Pan American currently holds production and prospects covering
approximately 30,000 acres in Texas.
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. For more information, please visit
www.horizonindustriesltd.com.
On Behalf of the board of directors,
"Christopher Wensley"
Christopher Wensley, President
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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Copyright (c) 2007 HORIZON INDUSTRIES LTD. (HRZ) All rights reserved.
For more information visit our website at
http://www.horizonindustriesltd.com/ or send
mailto:info@horizonindustriesltd.com
Message sent on Mon May 14, 2007 at 6:34:39 AM Pacific Time
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