Horizon Petroleum secures key Polish concessions, advancing Lachowice gas project

Horizon Petroleum Ltd. has announced the finalisation of concession agreements for a 100% working interest in the Bielsko-Biala and Cieszyn concessions, strategically located in southwest Poland. The move, formalised through its wholly owned Polish subsidiaries, underscores the company’s commitment to expanding its natural gas portfolio in Europe and marks a pivotal moment in its operational journey.

This development paves the way for Horizon Petroleum to graduate from the NEX to the TSX Venture Exchange as a Tier 2 Oil and Gas Issuer. The transition, expected to be completed next week, signals enhanced credibility and market positioning for the company. To facilitate this growth, Horizon has amended its payment agreement with San Leon Energy plc, extending the deadline for final consideration to 30 April 2025.

Unlocking the Lachowice gas reserves

The concessions’ finalisation brings Horizon one step closer to realising the full potential of the Lachowice gas development project. According to Horizon Petroleum, the project boasts independently evaluated probable reserves and 2C contingent resources exceeding 200 billion cubic feet (bcf) of natural gas. These reserves, assessed with a 10% discount rate, have a net asset value exceeding USD 450 million (CAD 631 million).

David Winter, CEO of Horizon Petroleum, highlighted that the signing of the agreements allows the company to officially book these substantial reserves and resources. He described the progress as a milestone that enables the company to prepare for operational activities, particularly at the Lachowice-7 well site, where preliminary preparations are already underway.

Horizon plans a well re-entry operation at Lachowice-7 in Q3 2025, aimed at initiating gas production from the first stage of development. Winter noted that consultations with local communities and authorities regarding the project’s development have been positive, with stakeholders expressing strong support for the initiative.

Strategic growth through new concessions

The Bielsko-Biala and Cieszyn concessions cover an expansive area of 1,130 square kilometres, offering Horizon a robust platform for future exploration and production. With the company’s upcoming TSX Venture Exchange graduation, 8,609,409 subscription receipts will convert into units, unlocking CAD 947,035 in cash proceeds. These units include one common share and one share purchase warrant, exercisable at CAD 0.30 per share over four years, subject to a four-month hold period.

Winter expressed gratitude to shareholders and stakeholders for their support throughout the process, emphasising the team’s eagerness to unlock the full potential of the Lachowice gas development.

Horizon Petroleum’s expansion into Poland signifies its ambition to position itself as a key player in Europe’s natural gas market, leveraging strategic assets to drive growth and deliver value to shareholders.