Horizon and Pan America Add Acreage to New Waverly Prospect

Horizon Industries, in partnership with Pan American Production, say that a further 712 acres have been acquired and added to the New Waverly Prospect located in San Jacinto County, Texas. The New Waverly Prospect now comprises approximately 4,172 acres.

Also, interpretation of newly acquired seismic data over the initial acreage has revealed several prospective Wilcox targets, at a depth of approximately 11,000 feet, offsetting the Old Waverly Field Wilcox production discovered by Cities Service in the late 1950's. Offsetting Wilcox production occurred in the J.C. Barnes Johnston #1 well which produced 4.625 BCF (Billion Cubic Feet) of gas plus 21,000 Barrels of oil and in the Cities Service Browder #1 which produced 3.3 BCF of gas.

Horizon and Pan American have completed drilling of two shallow Vicksburg/Jackson wells at New Waverly: the Hammond #1 which has been successfully tested and put on production, and; the Sue Ann Browder #1, which is due to be tested next week. Further analysis of logs from the Sue Ann Browder #1 well has also shown the presence of an additional prospective gas sand zone of interest below and in addition to those discovered in the Hammond #1 well. Exploration potential exists in the Vicksburg/Jackson, Yegua, Cook Mountain, Wilcox, and Woodbine formations. The newly acquired acreage brings the number of prospective shallow well locations to fifty-two.

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 and is operator of the New Waverly Prospect.