Horizon Industries Continues Testing on Manahuilla Prospect

Horizon Industries updates the operations status of the BB Gayle #1 well located on the Manahuilla Creek Prospect in Goliad County, Texas. Testing of the BB Gayle #1 well has been continuing through the summer.

The recently announced testing of a six foot zone from 6141' to 6147' was perforated and acidised. It had an influx of 340' of unconsolidated sand. This was subsequently circulated out and the hole was filled with nitrogen under pressure. The well was then refilled with water and re pressured to 2100psi and shut in. The plan is to check the well to see if the shut in pressure increases during the next few days. If no economic gas is encountered in this section, a decision will be made to set a bridge plug and proceed up hole to test the sands in the Eocene Jackson formation.

The gas corrected dipole sonic log of the Eocene Jackson formation indicates that there is a 28 foot zone from 5323' to 5357'. This coincides with gas shows on the mud log from 5310'to 5334' and 5340' to 5360'. It is recommended that a 22 foot zone be perforated from 5323' to 5350'. This zone will be perforated and tested within a few days.

In addition, there are two other similar zones in the Jackson formation that were identified on the sonic log from 5100' to 5160' and 4970' to 5060'. Again these coincide with gas shows on the mud log with the upper zone showing oil fluorescence. Further, all three zones correlate to anomalies in the 2D seismic data.

Horizon Industries Ltd is an emerging natural gas exploration Company. Currently, we hold a 20% working interest in the Manahuilla Creek Prospect in Goliad County, Texas, and a 9% working interest in the Whatley #1 Development Prospect in San Patricio County, Texas.

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