#Poland #Horizon Petroleum #Lachowice #EKZ #Bielsko-Biała

Horizon Petroleum Initiates Field Operations in Poland

Horizon Petroleum Ltd., a Calgary-based energy firm, has made a significant announcement regarding its operations in Poland. The company's subsidiary, Energia Karpaty Zachodnie sp. z o.o. (EKZ), has formalized a drilling and services contract with Exalo Drilling S.A. for the production testing of the Lachowice-7 well. This strategic move comes after the completion of several critical pre-operational milestones, including the final regulatory approvals needed to commence the work at the Bielsko-Biała concession, located in southern Poland.

Scheduled rig mobilization by Exalo is set to begin on July 27, 2026, with field activities expected to kick off by August 1, 2026. This operational phase marks a key milestone for Horizon as it aims to confirm the long-term production capabilities of the gas reservoir at Lachowice. Following a comprehensive planning phase, the project is poised for an operational execution phase that includes re-entering the well, pressure testing, and conducting stimulation activities to ensure sustainable flow performance.

The Workover Plan

The detailed workover program for the L7 well will involve several technical steps, including:
1. Re-entering the wellbore to remove existing suspension plugs.
2. Conducting pressure tests to verify the mechanical integrity of the well.
3. Re-perforating the well to prepare for recompletion in the Upper Devonian aged reservoir.
4. Stimulating the reservoir using a diverted acid strategy to assess production capabilities.

If the initial phases proceed smoothly, stimulation and production testing should commence by late August and should continue into early September 2026. Horizon's CEO, Dr. David Winter, emphasized the importance of this operational phase, noting the hard work that has gone into the planning and permitting process. He pointed out that the company has already identified significant reserves at Lachowice, including NI 51-101 compliant 2P reserves of 34 BCF and an additional 163 BCF of risked contingent resources.

Successful Financing

In addition to the operations update, Horizon announced the successful closure of an oversubscribed, secured convertible debenture financing. The company raised $681,000 through the issuance of 681 units, each at a price of $1,000. These debentures bear a 7% annual interest rate and mature in 36 months, providing investors with the option to convert their units into equity shares or warrants.

The proceeds from this financing will be allocated to the workover and production testing efforts at the Lachowice 7 gas well, further work program commitments in the Cieszyn region, and to enhance general corporate funding. Horizon is driven to establish a substantial new source of natural gas for Poland and is optimistic about the project's potential to generate cash flow as early as Q3 2027.

As they advance through their operational milestones, Horizon Petroleum is committed to executing the workover safely and efficiently, keeping stakeholders updated on the latest developments. With the successful planning and financing complete, the Lachowice project is positioned to play a vital role in enhancing energy independence and security in Europe.