Horizon Petroleum Initiates Operations at Lachowice
Horizon Petroleum Ltd. (the 'Company' or 'Horizon') (TSXV: HPL) has embarked on an exciting journey by commencing preparatory work at its Lachowice natural gas development. This strategic move signals Horizon's commitment to increasing natural gas production and addressing the growing energy demands across Europe.
Development Plans at the Lachowice Well
Dr. David Winter, CEO of Horizon, emphasized, 'We aim to establish a profitable intermediate-sized energy company, capable of producing natural gas that aligns with Europe’s increasing demand and enhances its energy security. We're laying the groundwork to re-enter the Lachowice 7 well with the vision of initiating production and generating cash flow by late 2025 or early 2026.'
The Lachowice gas field, with its impressive 2P natural gas reserves estimated at 34 BCF and an additional risked 2C contingent resource of 163 BCF, stands as the core of Horizon's strategy. The current Net Present Value (NPV10) is calculated at US$ 84.5 million and US$ 431 million, respectively, based on the company's recently disclosed NI51-101 compliant reserve and resource report.
Preparatory Works Underway
Resistance in the field is being transformed into action as Horizon begins preparatory works at the Lachowice 7 (L7) well site. This marks the first step in a phased approach to the gas field's evolution, targeting initial gas production within the next few years. Comprehensive agreements with local landowners facilitate smooth progress, supported by positive feedback from residents and regional authorities.
The team is meticulously assessing the existing conditions of the L7 wellhead to prepare for the upcoming workover phase. The installation of a small gas production and sales facility will follow once necessary adjustments, such as relocating a high-voltage power line for safety, are accomplished.
A Strategic Approach to Natural Gas Production
To maximize efficiency in operations, Horizon has contracted two engineering firms to explore the most effective ways to commercialize treated gas output. This includes evaluating options such as gas-to-electric facilities, compressed natural gas (CNG), or mini-liquefied natural gas (LNG) solutions.
Local Engagement and Operations
Roger McMechan, COO of Horizon, expressed satisfaction with the cooperation received from local residents and authorities, underscoring the operational team's success in fostering beneficial relationships. These connections are essential for ensuring a smooth launch and adherence to the objective of achieving production by the end of 2025 or in early 2026.
Commitment to Europe’s Energy Security
Horizon Petroleum is keenly aware of the broader implications of its operations. The company’s European natural gas strategy is anchored in several foundational goals:
- Reduce subsurface risks through comprehensive evaluation and acquisition of previously determined gas and oil resources located within confirmed gas basins in Poland and beyond.
- Drive investment decisions founded on risk assessment, emphasizing low-cost asset acquisitions that promise swift production and free cash flow.
- Utilize the international expertise of the team to efficiently develop complex gas and oil accumulations, starting with those in the Lachowice region.
- Ensure long-term sustainability by actively reducing greenhouse gas and methane emissions through modern technological applications and local resource utilization.
The company's strategy not only aims to capitalize on the growing energy market but also addresses pivotal economic and environmental challenges in the energy sector.
Geopolitical Strategy and Future Expansion
Horizon recognizes the geopolitical landscape’s role in shaping energy markets, thus diversifying its asset portfolio across various regions and geological formations is critical. The two concessions acquired in Poland represent a key foundation for growth while providing the groundwork to explore further opportunities across Eastern and Central Europe, as well as the Mediterranean.
By doing so, Horizon aims to boost domestic energy production and decrease reliance on external supplies, including Russian natural gas and coal. The company intends to keep its shareholders updated as operations evolve at the Lachowice site and throughout its European strategic initiatives.
About Horizon Petroleum Ltd.
Based in Calgary, Horizon Petroleum specializes in the appraisal, development, and production of natural gas and oil reserves within Europe. The Lachowice gas development embodies a significant aspect of Horizon’s strategy to bolster energy security by facilitating increased domestic production. The management team consists of seasoned oil and gas professionals who bring a wealth of international experience to the company.
Frequently Asked Questions
What operations is Horizon Petroleum launching at Lachowice?
Horizon Petroleum is beginning preparatory work at Lachowice to re-enter the Lachowice 7 well, with plans for gas production by late 2025 or early 2026.
How does Horizon's strategy contribute to energy security?
The strategy aims to enhance local production of natural gas, reducing dependence on external sources amidst rising energy demands in Europe.
What are the estimated reserves at the Lachowice gas field?
Lachowice has 34 BCF of 2P natural gas reserves and 163 BCF of risked 2C contingent resources, with significant economic value.
What is Horizon's approach to local community engagement?
Horizon prioritizes building positive relationships with local residents and authorities to ensure smooth operations and community support.
How important is technological integration in Horizon's plans?
Advanced technologies will be employed to maximize production efficiency and minimize environmental impact as part of Horizon's commitment to sustainability.
