Horizon Petroleum's Operations Update on Lachowice Development
Horizon Petroleum Ltd. (the "Company" or "Horizon") (TSXV: HPL) (FRA: HPM) (Tradegate: HPM) is excited to share an update on its operational progress towards the much-anticipated first production from the Lachowice gas development. This project is located in the Bielsko-Biala concession, a significant area for Horizon's growth strategy.
CEO David Winter expressed his satisfaction regarding the ongoing advancements in operations aimed at producing gas from the Lachowice 7 well. He emphasized that the Board and Management recognize the hard work of the operating team in ensuring that the initial development program is on track. Strong relationships have been forged with local communities, government bodies, and contractors, reflecting the commitment to collaborative progress.
Pending a successful workover, the sales from the Lachowice 7 (L7) well are expected to generate the Company's first cashflow, marking a major milestone. This production will also provide insights into the performance of the unique limestone and dolomite reservoirs prevalent in the area.
Preparations Underway for L7 Workover
The preparatory efforts for the L7 workover are proceeding as planned:
- Approval for the Environmental Impact Assessment (EIA) Permit has been secured from the Ministry of Climate and the Environment.
- Thanks to recent successful debenture financing, essential materials and services are being acquired for the project, including tubing and wellhead equipment.
- Horizon has confirmed with its electrical contractor that the local utility company is set to relocate a power line crossing the L7 wellsite by the end of June.
- The final design for the civil engineering aspects of the wellsite and access road has been completed. The construction tendering process will be initiated in the next few weeks, with construction expected to commence in July.
- Horizon is collaborating with a local service provider to select the right rig for the workover, which is now slated to start in September, followed by long-term production testing in October.
Early Production System Considering Future Revenue
The Company is diligently working to finalize the early production plan for the L7 well after the workover. Collaborations with local electrical and mechanical engineering companies have allowed for an extensive review of options to monetize gas production.
- Gas to Power options have been identified, with two access points to the local electricity transmission grid. The first site can provide a tie-in with a capacity of 2MW, while the second site offers 4MW capacity, with applications in progress for both.
- A preliminary design for the gas processing facility to manage condensates and free water from the gas stream has been completed, and sourcing for necessary equipment has begun.
- The EIA for the production facility is currently in progress, with a targeted submission date in mid-June.
Full Field Development Planning
Work is underway for the preliminary EIA for a comprehensive seismic survey over the Lachowice gas field, covering an area of 100km².
A recent third-party evaluation highlighted a high-pressure gas network tie-in option located approximately 14 km from L7, cutting down previous cost projections for pipeline installation and expediting approvals. Dialogue has commenced with pipeline operators to secure necessary access and capacities that align with both short and long-term production forecasts.
The Company is also preparing to initiate the EIA for the overall full field development facility site and will soon start the process to rezone the land for industrial purposes.
Upcoming Workover Operations
The L7 workover is being planned for September or October, contingent upon timely receipt of materials and equipment. A detailed operational plan is ready, with applications to regulatory bodies scheduled to be submitted shortly. The workover will encompass:
- Upgrading the wellhead for workover activities and overall production.
- Removing surface cement and mechanical plugs in the wellbore.
- Conducting pressure tests on the existing well casing for structural integrity.
- Retrieving an existing packer to reassess gas viability.
- Reperforating, applying acid stimulation, and conducting production tests on the selected zone.
- Preparing the well for production, anticipating the installation of the Early Production Facility in the first half of 2026.
The Company aims to commence gas and electricity sales and achieve first cash flow by early 2026.
About Horizon Petroleum Ltd.
Based in Calgary, Horizon Petroleum is dedicated to the appraisal and development of natural gas and oil reserves across Europe. With a team of experienced professionals, the Management and Board of Horizon are committed to advancing energy solutions with international expertise.
Frequently Asked Questions
What is the current status of the Lachowice gas development?
The Lachowice gas development is progressing with preparations for the L7 workover, set to start in September.
When does Horizon Petroleum expect to commence production?
The Company aims to achieve first gas and electricity sales by early 2026.
What has been done to prepare for the L7 workover?
Preparatory work includes securing permits, designing facilities, and contracting necessary equipment.
How is Horizon responsible towards its local community?
Horizon emphasizes collaboration with local stakeholders, including contractors and authorities, to ensure positive impacts.
What is the broader strategy for Horizon Petroleum?
Horizon is focused on locating and developing oil and gas reserves with a view toward sustainable growth in Europe.
