Horizon Petroleum Ltd. ("Horizon") is ?pleased to announce that its wholly owned Polish subsidiaries have received the final, signed concession agreements for a 100% working interest in the Bielsko-Biala and Cieszyn concessions located in southwest ?Poland.? In connection with the signed concession agreements the Company has also entered into an amendment agreement with San Leon Energy plc ("San Leon") to amend the payment date for the final consideration payable to San Leon to on or before April 30, 2025.
The completion of these steps satisfies the remaining conditions for graduation of the Company from the NEX to the TSX Venture Exchange as a Tier 2 Oil and Gas Issuer. The Company expects to complete this graduation process next week.
David Winter, CEO commented "We are pleased that the signing of the concessions has now taken place and that we can now prepare to commence operations. Importantly the Company can now book the independently evaluated probable reserves and 2C contingent resource values contained in the Lachowice gas development project which together exceed 200 bcf and have a Net Asset Value (discounted at 10%) that exceeds US$ 450 million (CAD $ 631 million). To prepare for the start of operations, the Company has also held consultation meetings with local communities and local authorities regarding the development of the Lachowice gas field. The development has been very well received locally and the communities and authorities are supportive of the Company's development plans. Furthermore, Horizon has also commenced preliminary, preparatory operations at the Lachowice-7 well location in readiness for a well re-entry planned for Q3 2025 to establish first gas production from the initial stage of development. I would like to thank all shareholders and stakeholders for their support and patience during this long process. Our team now look forward to getting on with the work to demonstrate and realize the exciting potential value associated with the Lachowice gas development."
Upon such graduation a total of 8,609,409 subscription receipts of the Company will convert to Units resulting in cash proceeds of $947,035 being available to the Company. The Subscription Receipts will be convertible into one Common Share and one Common Share purchase warrant of ?the Company (a "Subscription Receipt Warrant") which will be exercisable for a period of four years from ?closing at a price of CAD$0.30 per Common Share.? The underlying securities are subject to a four month hold period from the original date of issue of the Subscription Receipts.
Overview of Horizon Petroleum's Polish Licences.
The Bielsko-Biala and Cieszyn concessions ?are located in southwest Poland and comprise 1,130 square kilometers.
Apex Global Engineering Inc. ("Apex") was engaged to provide an NI51-101 compliant independent evaluation of reserves and contingent resources in the Lachowice gas development project located in the Bielsko-Biala concession.
The Reserve and Resource Report is dated effective December 31, ??2023. The reserves and resource data summarize the natural gas liquids and natural gas reserves and contingent resources; and the before tax ?net present values of future net revenue for these reserves and contingent resources reflecting Horizon's 100% working interest using forecast prices and costs as stated in the report and summarized below. The Reserve and Resource Report has been prepared in ?accordance with the standards contained in the COGE Handbook and the reserve definitions contained in ?NI 51-101 and the COGE Handbook.?
The Reserve Report is based on certain factual data supplied by the Company and, in the ?opinion of Apex, is within acceptable tolerances consistent with industry experience and practice. The extent and character of ownership and all ?factual data pertaining to the Company's two Polish properties and contracts were supplied by ?Horizon Petroleum to Apex. ?
There are numerous uncertainties inherent in estimating quantities of crude oil, natural gas and NGL ?reserves and resources and the future cash flows attributed to such reserves/resources . The reserves/resources and associated cash flow ?information set forth in this prospectus are estimates only. In general, estimates of economically ?recoverable oil and natural gas reserves and the future net cash flows there from are based upon a ?number of variable factors and assumptions, such as historical production from the properties, ?test production rates, ultimate reserve recovery, timing and amount of capital expenditures, marketability of ?oil and natural gas, royalty rates, the assumed effects of regulation by governmental agencies and ?future operating costs, all of which may vary materially from actual results. For those reasons, estimates ?of the economically recoverable natural gas liquids and natural gas reserves attributable to any particular ?group of properties, classification of such reserves based on risk of recovery and estimates of future ?net revenues associated with reserves prepared by different engineers, or by the same engineers at ?different times, may vary. The Company's actual production, revenues, taxes and development and ?operating expenditures with respect to its reserves will vary from estimates thereof and such variations ?could be material. It should not be assumed that the undiscounted or discounted net present value of ?future net revenue attributable to reserves estimated by Apex represent the fair market value of those ?reserves.?