Horizon Petroleum Reports Significant Reserves and Resources in Poland

Horizon Petroleum Ltd. (TSXV: HPL) has recently made headlines with its promising update regarding gas reserves and contingent resources from the Bielsko-Biala concession in Poland. The Calgary-based company now holds an impressive 34 billion cubic feet (BCF) of proven plus probable (2P) natural gas reserves, which carry a net present value (NPV10) of approximately $84 million. Additionally, the firm reports contingent resources amounting to 163 BCF, valued at $431 million, further enhancing its potential in European energy markets.

Acquisition Details

The reserves were secured through its fully owned Polish subsidiaries following the acquisition of the Bielsko-Biala and Cieszyn concessions on November 19, 2024. This acquisition comes shortly after the company ended its previous financial year, allowing Horizon to establish its footing in Poland's growing energy sector. Prior to this acquisition, the company did not hold any properties with reserves at its most recent year-end on August 31, 2024.

David Winter, CEO of Horizon Petroleum, expressed enthusiasm in the company’s capabilities in leveraging these resources. He stated, "We are excited to now be able to assign the 2P reserve and contingent resource values to the Company based on historical wells which were flow tested at rates up to 9 MMscf/d." The wells under discussion have displayed impressive flow rates, which further support the economic viability of the reserves.

Economic Insights

The reported 2P reserves not only underscore the immediate cash flow potential for Horizon but also reflect a robust economic foundation for future explorations. The net present value offers a solid base for further investment and development strategies. With an additional 163 BCF of risked 2C contingent resources and other prospective reserves estimated at 118 BCF, the company is positioned for significant development upside and potential drilling expansion.

The Bielsko-Biala concession spans approximately 805 square kilometers, with the Lachowice field accounting for about 10,561 acres of this area. The natural gas derived from this region is characterized as sweet, comprising about 91% methane, which is favorable for commercial production.

Key Resource Statistics

Horizon Petroleum's recent resource assessment by APEX Global Engineering Inc. has classified the natural gas reserves and resources as follows:

- Total Probable Reserves: 34.4 BCF
- Total Contingent Resources: 163.7 BCF
- NPV10 of 2C Resources: $431 million

These volumes are estimated solely based on Horizon's 100% working interest prior to any royalty burdens. The company has also acknowledged that these figures are preliminary and subject to recognized industry risks.

Challenges and Future Plans

Although the company shows promise, Horizon Petroleum must navigate various challenges. The Polish regulatory framework poses planning and resource access risks that could impede development timelines. Moreover, the company must secure funding for operational expansion and attract qualified personnel in both Calgary and Poland.

The CEO remains optimistic, stating that the strategic importance of gas resources in Europe presents significant avenues for growth. He indicated that effective operational management and well-executed development strategies would be pivotal in realizing the full potential of the new assets.

Conclusion

Horizon Petroleum's acquisition of significant gas reserves in Poland marks a pivotal moment in the company's trajectory. With established economic value and extensive resources at their disposal, they are set to play a vital role in the energy landscape of Europe. As the company works towards securing its future operations and navigating industry challenges, stakeholders and investors are undoubtedly keen to observe how Horizon Petroleum harnesses these promising developments in the years ahead.