HORIZON PETROLEUM COMMENCES CIVIL WORKS AT THE LACHOWICE 7 WELLSITE IN POLAND

Executive Summary

• Horizon Petroleum has commenced civil works at the Lachowice 7 wellsite in Poland, marking the first significant field construction to prepare the site for a workover rig expected in July.
• The reactivation of Lachowice 7 is a critical milestone toward first production from the Lachowice gas development, with initial gas and/or electricity sales and first cash flow targeted for late H1 2027.
• Successful workover and subsequent production will provide essential reservoir performance data to optimize field development plans and support the conversion of probable (2P) reserves into proven developed reserves.

Key Details

• Civil works have officially commenced at the Lachowice 7 wellsite within the Bielsko-Biala concession in southern Poland.
• Construction scope includes the well pad and the lease/access road.
• A workover rig is expected to arrive on site in July 2026.
• Contract negotiations for the drilling rig to perform the Lachowice 7 workover are at an advanced stage.
• Re-entry, recompletion, stimulation, and testing operations are planned to begin in July.
• Gas and/or electricity sales from the reactivated Lachowice 7 well are expected to generate the company's first cash flow.
• Production will serve as a long-term test of the naturally fractured Devonian limestone and dolomite reservoirs.
• Reservoir performance data will be used to refine wellbore completion designs and optimize the overall field development plan.
• Continuous gas production is anticipated to facilitate the conversion of assigned probable (2P) reserves into the proven developed reserve category.
• The company targets initial gas/electricity sales and first cash flow from the early development phase by late in the first half of 2027.

Notable Quotes

• Roger McMechan, Chief Operating Officer: "We are pleased to have started work on the construction of the Lachowice 7 well pad. Discussions are also at an advanced stage for the execution of a drilling rig contract to undertake the Lachowice 7 well workover, with the re-entry and recompletion operations planned to begin in July. We look forward to providing further updates once the commercial terms and availability for the required services for the workover, stimulation and testing operations for the well Lachowice 7 are finalized."