#Poland #Horizon Petroleum #mineral resources #Lachowice

Horizon Petroleum Begins Operations at Lachowice

Horizon Petroleum Ltd. has announced the launch of its preparatory work at the Lachowice natural gas development located in Poland. This initiative marks a significant step in the company’s European natural gas strategy, aiming to fulfill the increasing energy demands of the region while ensuring energy security.

Dr. David Winter, the CEO of Horizon Petroleum, stated that the company's main objective is to establish itself as a profitable mid-sized energy provider, primarily focusing on natural gas production. The first major goal is to initiate gas production from the Lachowice 7 well by the end of 2025 or early 2026. The Lachowice site has estimated 2P natural gas reserves of 34 BCF and risked 2C contingent resources of 163 BCF. These figures highlight a significant potential as they translate to a projected Net Present Value (NPV) of around $84.5 million and $431 million, respectively.

Initial Steps and Development Plan

The company has commenced the first phase of preparatory works at the Lachowice 7 (L7) well location, which involves re-entering the existing well, conducting workovers, and installing a small gas production and sales facility. Horizon has secured land access agreements with all the area landowners, which positions the company favorably to execute its operations. Local authorities have shown a positive reaction towards the company's initiatives, which aids in moving forward with the planned activities.

Currently, fieldwork is being conducted to assess the existing wellhead's condition and source necessary materials for the upcoming workover planned for this summer. The execution will depend on repositioning a nearby high-voltage power line to ensure it will be at a safe distance from the project site. Upon a successful re-entry and flow test at the L7 well, Horizon plans to install a dedicated gas treatment facility. The company is actively evaluating various ways to monetize the gas, working closely with two engineering firms to explore opportunities for transforming treated gas into electric energy or compressed natural gas (CNG).

Strategic Priorities for European Operations

Horizon Petroleum's approach to its European gas strategy hinges on several critical priorities aimed at reducing operational risks and maximizing returns. The company plans to focus on developing low-risk, previously discovered gas and oil resources. The Lachowice gas field will be the primary focus, complemented by assessments of the Bielsko-Biala and Cieszyn concessions located in southern Poland.

Investment decisions will be carefully planned around acquiring low-risk assets that promise high returns shortly. The company's strategic framework emphasizes minimizing finding, development, and acquisition costs while maintaining low operating expenses to ensure high returns on investment.

Furthermore, the team’s substantial international experience will be harnessed to monetize previously undeveloped or underutilized gas reserves, particularly those located in complex geological formations. Advanced technologies, including 3D seismic acquisition as well as enhanced drilling and completion methods, will be employed to increase production efficiencies.

Environmental Commitment

In acknowledging Europe’s shift towards a lower carbon economy, Horizon Petroleum aims to play a pivotal role in the natural gas sector amidst rising hydrocarbon demands, primarily driven by energy security concerns from geopolitical tensions such as the Ukraine war.

The company recognizes the importance of effective operations that align with environmental sustainability. Horizon plans to minimize methane and greenhouse gas emissions while developing its projects, underlining its commitment to environmentally friendly practices.

Moreover, Horizon will prioritize local and regional partnerships to ensure cost-efficiency and effective community engagement, which have been shown to enhance operational success. Building a diverse portfolio across various jurisdictions will also be vital in mitigating geopolitical risks and stabilizing production capability.

As Horizon Petroleum advances its work at the Lachowice natural gas development, it aims to keep stakeholders informed on progress and opportunities within the European natural gas landscape. With a clear strategic direction, Horizon is positioning itself to become a significant player in enhancing Europe’s domestic energy production and reduce its reliance on imported energy resources.