CALGARY, AB, March 12, 2025 /PRNewswire/ – Horizon Petroleum Ltd. (the “Company” or “Horizon”) HPL HPM HPM provides an update on advancements toward the first production from its Lachowice gas development in the Bielsko-Biala concession, located in southern Poland.

After receiving the Cieszyn and Bielsko Biala licenses from the Polish government on November 19, 2024, Horizon has been gearing up for a workover at the Lachowice 7 (“L7”) well and the installation of an early production and sales facility.

If the workover is successful, the L7 well will generate gas and/or electrical power sales, resulting in the Company’s first cash flow. This development will also provide crucial data on the production capabilities of the naturally fractured Devonian aged limestone and dolomite reservoirs in the L7 well.

Preparatory Work for L7 Workover

The following preparatory activities have been completed for the L7 workover:

• Excavation of the L7 wellhead and cellar is finalized, confirming the integrity of necessary primary and secondary seals for the well’s reactivation.
• Long lead time materials and services have been identified and are in the sourcing process.
• An Environmental Impact Assessment Study has been prepared and submitted to the Ministry of Climate and the Environment (the “Ministry”), with preliminary positive feedback expected to lead to full approval by April/May 2025.
• Surface lease agreements have been signed with all landowners near the L7 well location.
• Local government authorities granted approval for constructing the L7 workover site, allowing necessary civil works to commence. Tendering for field work is anticipated to begin this month.
• An official request to relocate the overhead electrical line above the L7 lease has received approval, with expected completion by the end of May 2025. A contracted electrical company will handle the field work to facilitate site construction for the workover rig and equipment.
• Execution of the L7 workover remains on schedule for July/August of this year.

Early Production System (EPF)

The Company has engaged an Electrical Engineering and Mechanical Engineering firm in Poland to explore options for monetizing gas production from the Lachowice gas field. The possible options include:

• Gas to Power: Processing approximately 1.5mmscf/d gas from L7 for use in an electrical generation facility that has a nominal capacity of 6MW, which can connect to existing local grids within 4 km of the L7 site.
• Gas Tie-in: A recent evaluation identified a high-pressure gas grid tie-in point about 12 km northeast of L7, significantly closer than previous assessments and expected to reduce pipeline costs with expedited approvals.
• Liquefied Natural Gas (LNG) or Compressed Natural Gas (CNG): Examining trucking and marketing solutions for transporting LNG or CNG to nearby sales locations.
• Completion of the preliminary design for a gas processing facility aimed at separating liquid condensate and free water from the L7 gas stream is underway. The Company has begun sourcing the required vessels and other processing equipment.

Technical Evaluation Work

Horizon has assembled a technical team of geoscientists, reservoir engineers, and petroleum engineers based in both Poland and Canada. This team will perform geological and geophysical evaluations to support Lachowice’s development and assess the exploitation potential in the Bielsko-Biala and Cieszyn concessions. Preliminary plans for a 3D seismic survey in the Bielsko-Biala concession have commenced, aiming to enhance the understanding of the subsurface geological structure and optimize well placements for the subsequent full-field development drilling program.

Forward Outlook

The completion of the L7 workover is projected for late summer to early fall of this year. A detailed work program will be submitted to the local Polish Mining Authority for approval within this month. The workover program will involve:

1. Upgrading the wellhead to facilitate the workover and prepare for production.
2. Drilling out two existing cement plugs in the wellbore.
3. Conducting a pressure test on the existing wellhead to ensure integrity and security.
4. Drilling and recovering an existing packer located above the zone that previously tested up to 8.9mmscf/d gas.
5. Reperforating, acid stimulating, and testing production in the same zone.
6. Finalizing the completion of the well once the EPF is operational.

The Company aims to initiate gas and electricity sales following successful workover operations.