Horizon Petroleum arranges $7.5-million offering

Executive Summary

• Horizon Petroleum Ltd. has entered into an agreement to raise up to C$7.5 million through a private placement of units on a commercially reasonable efforts basis.
• The offering consists of up to 75 million units priced at 10 cents per unit, with each unit comprising one common share and one common share purchase warrant.
• Net proceeds are intended for development capital, specifically for the initial development program at the Lachowice gas discovery in the Bielsko-Biala concession, including well workovers and reservoir completion.

Key Details

• Gross Proceeds: Up to C$7.5 million.
• Unit Price: 10 cents per unit.
• Quantity: Up to 75 million units.
• Structure: Each unit consists of one common share and one common share purchase warrant.
• Warrant Terms: Each warrant entitles the holder to acquire one common share at an exercise price of 15 cents per share.
• Warrant Duration: 36 months from the closing date.
• Overallotment Option: The agents have an option to purchase up to an additional 15% of the aggregate number of units (approx. 11.25 million units) at the issue price, exercisable within 30 days of the closing date.
• Agency Basis: The offering is on a "commercially reasonable efforts" agency basis, led by Haywood Securities Inc.
• Regulatory Filing: Offered under the company's short-form base shelf prospectus dated May 22, 2025, supplemented by a shelf prospectus supplement to be filed in Canadian provinces (excluding Quebec).
• Expected Closing: On or about August 20, 2025.
• Conditions: Subject to necessary approvals, including the TSX Venture Exchange.
• Use of Proceeds: Development capital and general corporate purposes. Specifically, funds will be deployed for the initial development program at the Lachowice gas discovery, including re-entry and workover of the Lachowice 7 gas well to production test and completion of Devonian-aged, naturally fractured carbonate reservoirs.