#Canada #Natural Gas #Horizon Petroleum #Calgary #Lachowice

Horizon Petroleum's Path to Production in Poland

Horizon Petroleum Ltd., a Calgary-based company, has announced significant updates regarding its operations for the Lachowice gas development project situated in the Bielsko-Biala concession of southern Poland. The company, which is publicly traded under the symbols TSXV: HPL, FRA: HPM, and Tradegate: HPM, is actively working towards its first production plans after being granted licenses in November 2024 by the Polish government.

Recent Developments

Since receiving the necessary licenses, the company has embarked on extensive preparations for a workover at the Lachowice 7 (L7) well, which is central to its production goals. The current phase is crucial as it involves refurbishing the well and establishing an early production facility that would enable Horizon to commence the sale of gas and electrical power from the L7 well. This initiative is projected to facilitate the company’s initial cash inflow and will also enable it to assess the longer-term production capabilities of the gas reserves in question.

Preparations Underway

Several preparatory tasks have been successfully completed, including:

• - The excavation of the L7 wellhead and cellar, ensuring the integrity of essential seals for reactivation.
• - Identifying and sourcing long-lead materials and services necessary for the project.
• - Submission of an Environmental Impact Assessment Study to the Polish Ministry of Climate and Environment, which has received preliminary positive feedback. A full approval is anticipated by April or May 2025.
• - Securing surface lease agreements with local landowners and obtaining local government approvals for the construction of the workover site.
• - Approval for relocating an overhead electrical line that crossed the L7 lease, with the work expected to complete by May 2025.

The timeline remains robust, with the workover execution scheduled for July or August 2025, aligning the company for its targeted production start.

Early Production Systems

To optimize the monetization of gas production from the Lachowice gas field, Horizon Petroleum is exploring various strategies:

• - Gas-to-Power: The company is examining ways to process a gas stream from the L7 well into a local electrical generation facility, aiming for a nominal capacity of 6 MW.
• - Gas Tie-in: A new evaluation has revealed a high-pressure gas grid tie-in point much closer to L7 than originally planned, facilitating faster approvals and reduced costs.
• - LNG/CNG Options: Plans are being assessed for distributing Liquefied Natural Gas and Compressed Natural Gas efficiently to nearby sales markets.

A detailed preliminary design for the required gas processing facility has already been conceptualized, ensuring that the necessary equipment is being sourced effectively.

Technical Evaluations

Horizon has contracted a team of skilled engineers and geoscientists from Poland and Canada to perform geological and geophysical assessments of the Lachowice project. Initial steps for conducting a 3D seismic survey have been initiated, which will enhance the understanding of the subsurface structure and optimize future well placements for full-field development potential.

The Future Outlook

The completion of the workover by late summer or early fall is critical as it will set in motion a series of technical processes to ready the well for production. The comprehensive workover program will include:

• - Upgrading the wellhead.
• - Drilling out cement plugs in the wellbore.
• - Conducting pressure tests for security.
• - Reperforating and stimulating a zone that has previously demonstrated substantial output.
• - Finalizing the well for production once the early production facility is operational.

Horizon Petroleum's target is to initiate gas and electricity sales by the first quarter of 2026, marking a significant milestone in their operational journey in Europe’s gas market.

The management team, with extensive international experience, is confident in navigating the various challenges and opportunities in the European energy sector as it continues to track current market dynamics and regulatory landscapes.

For more information about Horizon Petroleum and its ongoing projects, visit www.horizon-petroleum.com.