Dr. David Winter reports

HORIZON PETROLEUM ENTERS INTO AGREEMENT FOR WEST AFRICAN FARM-IN; APPOINTS NEW PRESIDENT & CEO AND ANNOUNCES PRIVATE PLACEMENT

Horizon Petroleum PLC has entered into a letter agreement with a significant international resource company to farm in to an offshore exploration block in West Africa. Under the agreement, the company and the partner have agreed to the primary terms under which Horizon can earn a 50-per-cent working interest in the block, and which will be contained within a definitive agreement to be entered into between the company and the partner.

The company will release further information on this West African farm-in, when available, and able to do so under the confidentiality terms of the agreement. The company and the partner are currently awaiting formal approval from the host country for entering into the next exploration phase under the production sharing contract covering the block.

Furthermore, Horizon reports that Dr. David Winter, executive director, has agreed to assume the role of president and chief executive officer of the company, replacing David R. Robinson, the interim chief executive officer. Mr. Robinson will continue in his role of vice-president, business development, of the company.

Dr. Winter has over 28 years of international oil and gas industry experience in Latin America, the Middle East, North Africa, southeast Asia and North America. He is a co-founder and director of privately held Miramar Hydrocarbons Ltd., as well as a co-founder and director of Canacol Energy Ltd., a publicly traded oil and gas company listed on both the Toronto and Colombia stock exchanges. Prior to founding Miramar, Dr. Winter was founder, CEO and president of Excelsior Energy Ltd., a Canadian publicly traded company focused on exploration and appraisal activities in Canada's oil sands. Dr. Winter acquired his extensive international oil and gas experience from senior management roles at Calvalley Petroleum, where he was senior vice-president, exploration and production, and at Alberta Energy Company, where he was vice-president, international exploration. He has also held senior management and technical positions with Canadian Occidental, Sun Oil and BP. Dr. Winter holds a BSc (honours), MSc and PhD in geology.

Commented Yogeshwar Sharma, chairman of the company, "As the company moves into its next stage of growth, the board is delighted with the appointment of Dr. Winter as the company's CEO, and wishes to acknowledge Mr. Robinson's significant contribution to Horizon since the reorganization, and renewed focus on development opportunities in West Africa."

Furthermore, the company announces its intention to undertake a non-brokered private placement for aggregate gross proceeds of up to $2-million, through the distribution of units at five cents per unit; each unit consisting of one share plus one-half warrant with each whole warrant exercisable at 7.5 cents per share for 24 months. The private placement will be subscribed for by management, board members and family, plus consultants, close associates and others.

Funds raised under the private placement will be used to advance the West African farm-in, and for general working capital purposes. Finders' fees may be payable on a portion of the private placement.