#Canada #Horizon Petroleum #Calgary #European Market #Polish Gas

Horizon Petroleum's Corporate Update on Polish Gas Assets

Horizon Petroleum Ltd. (TSXV: HPL) is excited to share updates regarding its operations in the Bielsko-Biala and Cieszyn concessions in Poland. With the goal of enhancing domestic gas production to complement the Polish Government's policies, the company highlights significant advancements in their sanctioned projects.

Summary of Operational Progress

In the Bielsko-Biala concession, Horizon has initiated the development of the Lachowice gas field, which boasts an impressive reserve estimate of 34 BCF in 2P and 164 BCF in 2C contingent resources. These figures translate to an NPV of $84 million and $431 million, showcasing the strong potential for value creation in this area.

The recent report prepared by APEX Global Engineering Inc. confirmed the reserves and resources, although they are subject to inherent risks, emphasizing the importance of careful management and execution strategies.

Navigating the European Gas Landscape

As Europe shifts toward reducing its dependence on coal and minimizing reliance on Russian gas, Horizon's focus is timely. Recent EU policies aim to eliminate gas imports from Russia by 2027, setting the stage for increased domestic production and the use of LNG imports, primarily from the USA.

Currently, natural gas prices in Poland hover around 163.5 PLN/MWhr or around $12.75 per Mcf. Futures for 2026 stand slightly higher, pointing toward a sustained robust pricing environment that could favor domestic producers.

Cieszyn Concession Insights

Horizon has been actively conducting geological studies and seismic data reprocessing in the Cieszyn concession, uncovering considerable potential. The initial findings suggest multiple priority areas ripe for further exploration, with plans for 3D seismic data acquisition envisioned for 2026.

The presence of 48 existing wells—most of which were drilled during the Soviet era—provides valuable historical data. These wells reported significant gas tests, supporting the geological models in place and confirming the area's viability for future production.

Adjacent to Cieszyn, several gas fields operate under similar geological conditions, further reinforcing the rationale for Horizon’s activities in the region. The localized pipeline infrastructure is expected to ease the connectivity for any gas Horizon can produce, ensuring a ready market amidst local heavy industry needs.

Future Planning and Drilling Programs

Horizon intends to commence drilling its first new well by late 2026 or early 2027, adhering to the requirements established in its license agreement. However, the company is assessing the potential to expedite this timeline by drilling adjacent to existing wells that previously demonstrated gas viability but were never developed into production.

The estimated costs for these projects remain competitive, with drilling expenses anticipated between $1 million to $2 million, while the surrounding market conditions favorably impact the economics behind such undertakings.

Company Overview

Headquartered in Calgary, Horizon Petroleum is dedicated to advancing conventional oil and gas resources in Europe. With a team comprising experienced industry professionals, the company is well-positioned to capitalize on the burgeoning energy landscape in Poland.

As Horizon Petroleum continues to expand its portfolio and capabilities, stakeholders remain optimistic about the company’s future contributions to both local and European energy markets.