announcement after close, page-3

FEJAJ PERMIT, GHAFSA TROUGH. HORIZON OIL INTEREST: 14.29%

Deepening of the Chott Fejaj 3A well began on 30 December 2002,
utilizing Great Wall Drilling Company rig GW-92. The operation
involves the deepening of an existing well by 700m to a total depth
of 4250m. The primary targets are zones of Triassic and Paleozoic
age that produce prolifically in Tunisia and neighbouring Algeria and
Libya.

Mean reserve potential is estimated to be 600 billion cubic feet of
gas, with upside of several trillion cubic feet. Horizon Oil is
operator and will have a 14.29% interest in the prospect. The Company
may, at its option, increase its interest to 21.79% after the well is
drilled, by payment of 7.5% of prior costs.

"The test will expose shareholders to a potential return of multiples"


of the company's present worth at a relatively small capital cost.
The Tunisian Government Authorities have an objective of developing
gas reserves for marketing into Europe and have shown a high level of
interest in this project. If successful, the proximity of existing
infrastructure will allow a discovery to be brought into production
quickly.

At the time of writing, the well was drilling ahead in interpreted
seal rocks of the Azizia Formation at a depth of 4181m.