#Canada #Horizon Petroleum #Calgary #San Leon Energy #Polish Assets

Horizon Petroleum Finalizes Acquisition of Polish Assets

Horizon Petroleum Ltd., a Calgary-based company listed on the TSXV, has successfully completed the acquisition of its Polish subsidiaries, which hold vital natural gas assets. This completion represents a significant milestone in Horizon's strategy to enhance energy independence and security within Europe. The transaction was finalized with amended terms that ultimately benefited both Horizon and San Leon Energy, the previous owners of the assets.

Background of the Acquisition

Initially, Horizon Petroleum had entered into a deal with San Leon Energy, agreeing to acquire two of its Polish subsidiaries, Energia Karpaty Zachodnie Sp. z o.o. and Energia Karpaty Zachodnie z ograniczona odpowiedzialnoscia Sp.K. These subsidiaries are responsible for the Bielsko-Biala and Cieszyn Concessions. However, due to delays in the concession transformation process, Horizon assumed responsibility for completing the necessary changes, including transitioning the concessions to the new Polish regulatory framework. Once these transformations were achieved, confirmation was received from the relevant authorities, allowing further steps in the acquisition to proceed as planned.

Amended Deal Terms

Following negotiations, the amended terms included a revised final cash consideration of USD 1,600,000 to San Leon Energy, which replaced the original financial arrangements involving cash and shares. The cancellation of the 6% Net Profits Interest (NPI) was also a pivotal change, freeing Horizon from share dilution and allowing the company to enhance its reserve value significantly. Drastic changes in the deal reflect both parties' efforts to accommodate each other's operational preferences and financial needs, while also minimizing potential obstacles that could arise from uncertainty in market conditions.

Dr. David Winter, CEO of Horizon Petroleum, expressed satisfaction with the deal's conclusion, highlighting how it would reduce the company's debt load and enhance its natural gas reserve valuation. The end of the NPI provision not only strengthens financial positioning but also opens up prospects for growing gas reserves strategically located within southern Poland. This acquisition will enable Horizon to tap into the resources located over a vast area of 1,100 square kilometers, further supporting the country’s aims to bolster domestic gas supply.

Future Prospects

With this acquisition completed, Horizon is now in a robust position to drive development across its Polish assets. The company’s focus will turn toward unlocking the natural gas reserve potential at both the Lachowice site and other locations covered under its extensive landholdings. This move is seen as part of a broader strategy aimed at addressing energy demands in Poland while simultaneously enhancing the country's energy independence from foreign supplies.

Horizon Petroleum’s management brings a wealth of oil and gas expertise alongside business proficiency to leverage market dynamics effectively. The move to acquire these assets represents a long-term vision of growth and stability within the European energy sector, reinforcing Horizon's commitment to contributing positively to the region's energy landscape.

Overall, the completion of this acquisition is not just a transaction but a foundational step forward for both Horizon Petroleum and the Polish energy market. By realizing these assets fully and responsibly, Horizon aims to play a decisive role in shaping the energy future of Poland, emphasizing sustainable practices and dedication to elevating local supply capabilities amid global energy challenges.

About Horizon Petroleum Ltd.

Horizon Petroleum is focused on the appraisal and development of natural gas reserves while creating avenues for clean energy resources that contribute to energy security and independence in Europe. The concerns that drove this acquisition, including growing energy demands and shifts toward more sustainable practices, underline the company's forward-looking approach to the energy sector.

Horizon’s announcement also includes necessary disclaimers regarding market risks and forward-looking statements to protect both the company and its investors.

For more details about the company, visit Horizon Petroleum's official website.