Horizon updates on Funk prospect

Horizon Industries Ltd. provides an update on production status and contemplated work over at the Funk Prospect in Goliad County, Texas.

The Funk #1 well, which was put to sales in November 2006, was shut-in in late July, 2007 due to sudden production of water. Shut in tubing pressure is currently 630 psi. The well is currently being evaluated to determine feasibility of remedial work over of the current zone. The decision will be made to continue efforts to restore production from this zone or proceed to a further up hole zone of interest once this evaluation is completed.

The Funk #2 well, which was placed back on sales on August 30, 2007 from pay in the Frio formation, also began producing water in November and has been shut in since November 20, 2007. Work over of the current zone will proceed as soon as the data has been evaluated. If it is determined that this zone will not continue to be productive, the Company intends to proceed to the next of several up hole pay zones to re-establish production.

The Funk #3 and Funk #4 work over prospects are currently shut in and will also be re-evaluated as to whether they may be economically productive or if they should be abandoned.

Furthermore, 3D seismic data covering the prospect lands will be re-processed and interpreted to refine additional targets present at Funk. Drilling proposals will be considered for these future prospective targets late in the first quarter of 2008.