HORIZON PETROLEUM PROVIDES EUROPEAN GAS MARKET SUMMARY AND A CONCESSION UPDATE ON ITS GAS ASSETS IN POLAND

CALGARY, AB, Might 7, 2025/ PRNewswire/ – Horizon Petroleum Ltd. HPL HPM HPM (” Horizon” or the “Business”) is delighted to offer a business upgrade on its development on performing its programs in the Bielsko-Biala and Cieszyn concessions.

The Business has actually formerly reported on its development in its operations at the Lachowice gas advancement in the Bielsko-Biala concession where we have actually begun operations on the preliminary advancement of the field. The field has actually designated 2P net reserves of 34 BCF and 164 BCF of Net 2C Contingent resources with net property worths of NPV10 of US$ 84 million and US$ 431 million respectively, and 118 bcf of run the risk of finest quote potential resources (466 bcf unrisked) in undrilled location of the field. (News release dated January 14,2025).

Pinnacle Global Engineering Inc. (” PEAK”) prepared the Reserves and Resource Report in accordance with NI 51-101 with a reliable date of August 31, 2024 (problem date of December 4, 2024). Pinnacle designated the Probable Reserves and Contingent and Potential Resources to the Lachowice field. The reserves and resources designated go through substantial threats. Please describe the Threats area at the end of this news release.

European and Polish Gas Markets

The advancement of our properties and the prepared start of production will assist satisfy the Polish Federal governments policies to increase domestic gas production. The energy need environment in Europe and Poland is driven by the objective to lower reliance on coal and to change imported gas materials from Russia for power generation. The EU has actually just recently divulged policies targeting the cessation of all gas imports from Russia by 2027. Much of the Russian gas is being changed with LNG imported mostly from the U.S.A. The macro-gas market environment is anticipated to keep gas costs reasonably high. Present gas costs in Poland are 163.5 PLN/MWhr ( US$ 12.75/ mcf) with futures 2026 rate of 168.6 PLN/MWhr ( US$ 12.80/ mcf). Gas costs at the Dutch TTF center are presently Euro 34.4/ MWhr ( US$ 11.50/ mcf).

David Winter Season, CEO of the Business commented: “The preliminary evaluation of the seismic and well information has actually validated our belief that the Cieszyn concession consists of substantial gas capacity and we eagerly anticipate our work programs over the next year to define the potential customers for our preliminary drilling targets that are close to wells that have actually effectively evaluated gas. The capacity is supported by the shallower depths to the target tanks of less than 1,000 m, and distance to gas facilities that will permit us to bring wells into production reasonably rapidly. Lower expense of drilling, distance to facilities lowering tie-in times in the strong Polish gas prices environment of around US$ 12/ mcf will drive appealing financial go back to stakeholders”.

The Business is delighted to report on its preliminary evaluation of the Cieszyn concession.

Cieszyn Concession

The Business has actually been performing its preliminary work program of geological research studies and seismic reprocessing which has actually revealed the substantial capacity of the Cieszyn concession. The concession is covered by a broad grid of 2D seismic information of variable quality. The Business has actually recycled some essential 2D lines which considerably enhances the information quality and imaging of the target tank developments. The preliminary technical evaluation has actually specified a number of top priority locations of prospectivity for brand-new 3D seismic acquisition programs. These are prepared for 2026 and will be essential to defining the playfairways and potential customers of the Miocene aged sandstone tanks to support future drilling programs.

In addition to the 2D seismic information, Cieszyn has an overall of 48 existing wells that have functional information, most of which were drilled throughout the Soviet period. (just 3 wells were drilled given that 1991). The wells were normally shallow, targeting the Silesian Flysch of Miocene age and top quality Miocene aged sandstone tanks, lots of reporting substantial gas tests of over 1mmscf/d from well depths of 400m to 1,500 m Lastly, there are 2 producing gas fields nearby to the Cieszyn licence location. They were found in the 1940’s and 1950’s and federal government records suggest that they have actually produced near 10bcf of gas to before they were suspended. The gas evaluated and produced is high quality, sweet (no H2S and very little CO2) with methane contents normally greater than 90%.

There are a variety of “on pattern” gas fields straight to the west in surrounding Czechia which supports our geological designs. These 7 close-by fields produce gas from sandstone tanks of Miocene age. These tanks are the exact same Miocene aged sandstone developments that have actually been experienced in the Cieszyn Licence location.

Offtake of any produced gas is supported by the comprehensive pipeline facilities within the licence location and the substantial heavy market in the area offers a prepared direct market for any gas the Business can cause stream.

Horizon prepares to drill its very first brand-new well by late 2026 or 2027 which is a requirement under its license contract. Nevertheless, the business is thinking about accelerating this strategy through the drilling of “twin” wells next to existing wells that formerly evaluated gas however were never ever placed on long-term production. Well expenses are anticipated to be in the variety of US$ 1M– US$ 2MUS and associated economics are anticipated to be favorable.

ABOUT HORIZON

Calgary– based Horizon is concentrated on the appraisal and advancement of standard oil & & gas resources onshore Europe The Management and Board of Horizon include oil & & gas experts with substantial worldwide experience.

Oil and Gas Advisories and Threats

The reserve and resource price quotes included in this news release have actually been prepared in accordance with NI 51-101, is dated since August 31, 2024 and prepared by peak Global Engineering Inc.. The Business held no reserves or reserves at year end however consequently was given the Bielsko-Biala and Cieszyn Concessions on November 19, 2024

The reserve and resource price quotes of gas and gas liquids reserves supplied in this press release are approximates just, and there is no warranty that the projected reserves and/or resources will be recuperated. Real reserves and resources might ultimately show to be higher than, or less than, the price quotes supplied herein. It needs to not be presumed that the price quotes of future net profits provided herein represent the reasonable market price of the reserves and/or resources. There are many unpredictabilities intrinsic in approximating amounts of gas and gas liquids reserves and/or resources and the future money streams credited to such reserves and/or resources.

These threats and unpredictabilities consist of however are not restricted to: (i) the reality that there is no certainty that the zones of interest will exist to the level approximated or that the zones will be discovered to have gas with attributes that satisfy or go beyond the minimum requirements in regards to take-home pay density and/or porosity, or that the gas will be commercially recoverable to the level approximated; (ii) the reality that there is no certainty that any part of the likely reserves and contingent and potential resources will be commercially practical to produce; (iii) the reality that the Business should employ an operations group and executive group in both Calgary and Poland in order to carry out on the advancement strategy, and there are no warranties that appropriately certified technical and expert personnel and/or experts will be offered; (iv) the absence of extra funding to money the Business’s advancement activities and continued operations; (v) the threats related to getting approvals to gain access to land to drill wells or set up facilities and centers in an affordable timespan; the Polish regulative routine is reasonably steady however is marked with long approval procedures relative to North American jurisdictions; (vi) the threats in getting or building sufficient gas facilities to produce and offer gas, and whether capability will be offered in the existing primary pipeline system at sensible expenses; (vii) the danger that there might not be a drilling rig offered to drill the needed wells, and the danger that if a rig mobilization is needed from beyond Poland, that the expenses might be expensive; (ix) threats intrinsic in the worldwide oil and gas market; * variations in forex and rates of interest; (xi) the variety of rivals in the oil and gas market with higher technical, monetary and operations resources and personnel; (xii) variations in world costs and markets for oil and gas due to domestic, worldwide, political, social, financial and ecological aspects beyond the Business’s control; (xiii) modifications in federal government policies impacting oil and gas operations; (xiv) possible liabilities for contamination or threats versus which the Business can not properly guarantee or which the Business might choose not to guarantee; (xv) contingencies impacting the category as reserves versus resources which associate with the following concerns as detailed in the COGE Handbook: ownership factors to consider, drilling requirements, screening requirements, regulative factors to consider, facilities and market factors to consider, timing of production and advancement, and financial requirements; (xvi) the reality that there is no certainty that any part of the potential resources will be found and if found, there is no certainty that it will be commercially practical to produce any part of the resources; and (xvii) other aspects beyond the Business’s control.

Any recommendation in this news release to PIIP, contingent resources and potential resources are not, and need to not be puzzled with oil and gas reserves.

Meanings

Overall Petroleum At First in Location (“ PIIP“) describes the overall amount of petroleum that is approximated to exist initially in naturally happening build-ups. It consists of the petroleum that exists in understood build-ups prior to production and the approximated amounts yet to be found in the different leads and potential customers determined by seismic and presumed by geology. A part of the PIIP will be recoverable as figured out by supreme healing aspects and the approximated recoverable part is additional categorized as Reserves, Contingent Resources or Potential Resources.

Discovered Petroleum At First in Location (“ Found PIIP” or “ DPIIP“) is the overall amount of Petroleum that is approximated since the reliable date of the Report to be included in recognized build-ups prior to production.

Several advancement tasks might be used to each understood build-up which might be separated vertically into various developments or by location in various swimming pools; each job will recuperate a part of the PIIP according to its special tank attributes. The tasks will be partitioned into Business and Sub-Commercial at the reliable date with the approximated recoverable petroleum amounts being categorized as Reserves and Contingent Resources

Reserves are approximated staying amounts of oil and gas and associated compounds expected to be commercially recoverable from recognized build-ups, from an offered date forward, based upon:

1. analysis of drilling, geological, geophysical and engineering information;
2. making use of recognized innovation; and
3. defined financial conditions (see the conversation of “ Financial Presumptions” listed below).
   
   Reserves are categorized according to the degree of certainty related to the price quotes.
4. Shown Reserves are those reserves that can be approximated with a high degree of certainty to be recoverable. It is most likely that the real staying amounts recuperated will go beyond the approximated proven reserves.
5. Probable Reserves are those extra reserves that are less particular to be recuperated than proven reserves. It is similarly most likely that the real staying amounts recuperated will be higher or less than the amount of the approximated showed plus likely reserves.
6. Possible Reserves are those extra reserves that are less particular to be recuperated than likely reserves. It is not likely that the real staying amounts recuperated will go beyond the amount of the approximated showed + likely + possible reserves

Business Gross Reserves are the Business’s working interest (operating or non-operating) share before subtracting royalties and without consisting of any royalty interests of the Business.

Resources are specified in the Canadian Oil and Gas Examination Handbook (COGEH) Volume 1, area 5 as follows:

Contingent Resources are those amounts of petroleum approximated, since an offered date, to be possibly recoverable from recognized build-ups, however the applied tasks are not yet thought about fully grown enough for industrial advancement due to several contingencies. Contingent Resources might consist of, for instance, tasks for which there are presently no practical markets, or where industrial healing depends on innovation under advancement, or where examination of the build-up is inadequate to plainly examine commerciality.

Contingencies might consist of aspects such as financial, legal, ecological, political, and regulative matters, or an absence of markets. It is likewise suitable to categorize as contingent resources, the approximated found recoverable amounts related to a task in the early examination phase. Contingent Resources are additional categorized in accordance with the level of certainty related to the price quotes and might be sub classified based upon job maturity and/or identified by their financial status.

Not all technically possible advancement strategies will be industrial. The industrial practicality of an advancement job depends on the projection of financial conditions over the life of the job. For Contingent Resources, the danger element connecting to the possibility that a build-up will be commercially established is described as the “possibility of advancement.” For contingent resources, the possibility of commerciality amounts to the possibility of advancement.

Advancement Pending are contingencies that are being actively pursued; anticipate resolution in an affordable period; are straight affected by the designer with both, internal approvals and dedication and advancement timing and; have a high possibility of advancement (>> 80%).

Advancement on Hold are contingencies with significant non-technical contingencies determined; have an affordable possibility of advancement (>> 50%); have contingencies that are beyond the control of the designer consisting of however not restricted to: external approvals, financial aspects, market gain access to, political aspects and social license.

Advancement Unclarified are contingencies that have actually not been plainly specified; the job is presently under active examination; substantial additional appraisal might be needed; development is anticipated in an affordable period; possibility of advancement is hard to examine and might be a huge variety (20% -80%).

Advancement Not Feasible are contingencies that have actually been determined; the job was examined and thought about not practical or substantial additional appraisal might be needed; development is not anticipated in an affordable period and; has a low possibility of advancement (

Contingent Resources– Advancement Pending and– Advancement On Hold are thought about financial, Contingent Resources– Advancement Unclarified have economics that are undetermined, and Contingent Resources– Advancement Not Feasible are thought about sub-economic.

Potential Resources are those amounts of petroleum approximated, since an offered date, to be possibly recoverable from undiscovered build-ups by application of future advancement tasks. Potential resources have actually both an associated possibility of discovery and an opportunity of advancement. Potential Resources are additional partitioned in accordance with the level of certainty related to recoverable price quotes presuming their discovery and advancement and might be sub classified based upon job maturity.

Not all expedition tasks will lead to discoveries. The possibility that an expedition job will lead to the discovery of petroleum is described as the “possibility of discovery.” Hence, for an undiscovered build-up, the possibility of commerciality is the item of 2 danger parts– the possibility of discovery and the possibility of advancement.

Quotes of resources constantly include unpredictability, and the degree of unpredictability can differ extensively in between accumulations/projects and over the life of a task. As a result, price quotes of resources need to typically be priced estimate as a variety according to the level of self-confidence related to the price quotes. An understanding of analytical principles and terms is important to comprehending the self-confidence related to resources meanings and classifications. These principles, which use to all classifications of resources, are described listed below. The variety of unpredictability of approximated recoverable volumes might be represented by either deterministic circumstances or by a likelihood circulation. Resources needs to be supplied as low, best, and high price quotes as follows:

• Low Quote and/or 1C when it comes to Contingent Resources: This is thought about to be a conservative quote of the amount that will really be recuperated. It is most likely that the real staying amounts recuperated will go beyond the low quote. If probabilistic approaches are utilized, there need to be at least a 90 percent likelihood (P90) that the amounts really recuperated will equate to or go beyond the low quote.
• Finest Quote and/or 2C when it comes to Contingent Resources: This is thought about to be the very best quote of the amount that will really be recuperated. It is similarly most likely that the real staying amounts recuperated will be higher or less than the very best quote. If probabilistic approaches are utilized, there need to be at least a half likelihood (P50) that the amounts really recuperated will equate to or go beyond the very best quote.
• High Quote and/or 3C when it comes to Contingent Resources: This is thought about to be a positive quote of the amount that will really be recuperated. It is not likely that the real staying amounts recuperated will go beyond the high quote. If probabilistic approaches are utilized, there need to be at least a 10 percent likelihood (P10) that the amounts really recuperated will equate to or go beyond the high quote.

This method to explaining unpredictability might be used to reserves, contingent resources, and potential resources. There might be substantial danger that sub industrial and undiscovered build-ups will not attain industrial production, nevertheless, it works to think about and determine the variety of possibly recoverable amounts separately of such danger.

The primary contingencies determined in the Lachowice Reserves Report are the effective recompletion of existing deserted wells, the anticipated decrease rates and the approval and conclusion of brand-new advancement and brand-new re-entries. Table listed below lays out the favorable and unfavorable aspects which might pertain to the Resource Report presumptions and price quotes.

Boe suggests a barrel of oil equivalent on the basis of 6 Mcf of gas to 1 barrel of oil equivalent. Mcfe suggests one thousand cubic feet of gas equivalent on the basis of 6 Mcfe: 1 barrel of oil. A boe conversion ratio of 6 Mcf: 1 Boe and 6 Mcfe: 1 bbl are based upon an energy equivalency conversion technique mostly suitable at the burner pointer and does not represent a worth equivalency at the wellhead. Provided the worth ratio based upon the rate of crude compared to the rate of gas at different times can be considerably various from the energy equivalence of 6 Mcf: 1 boe or 6 Mcfe: 1 bbl, utilizing Boe’s and Mcfe’s might be deceptive as a sign of worth.

Abbreviations:

well as the source of moneying the Business’s capital costs. Positive details normally utilizes words such as” expect”, “think”, “job “,” anticipate

“, “objective “,” strategy “, “mean” or comparable words recommending future results, declarations that actions, occasions or conditions” might”,” would”,” might” or” will” be taken or happen in the future. The positive details is based upon particular essential expectations and presumptions made by Horizon’s management, consisting of expectations and presumptions kept in mind formerly in this news release under oil and gas advisories, and in addition with regard to dominating product costs which might vary materially from the rate projections utilized by Peak and differentials, currency exchange rate, rates of interest, suitable royalty rates and tax laws; future production rates and price quotes of running expenses; efficiency of future wells; reserve and resource volumes; expected timing and outcomes of capital investment; the success gotten in drilling brand-new wells; the sufficiency of allocated capital investment in performing prepared activities; the timing, place and level of future drilling operations; the state of the economy and the expedition and production company; outcomes of operations; efficiency; company potential customers and chances; the accessibility and expense of funding, labour and services; the effect of increasing competitors; the capability to effectively incorporate properties and workers obtained through acquisitions, the capability to market gas effectively and Horizon’s capability to gain access to capital. Although the Business thinks that the expectations and presumptions on which such positive details is based are sensible, unnecessary dependence needs to not be put on the positive details since Horizon can provide no guarantee that they will show to be right. Because positive details addresses future occasions and conditions, by its very nature they include intrinsic threats and unpredictabilities. Horizon’s real outcomes, efficiency or accomplishment might vary materially from those revealed in, or suggested by, the positive details and, appropriately, no guarantee can be considered that any of the occasions expected by the positive details will take place or happen, or if any of them do so, what advantages that we will obtain therefrom. Management has actually consisted of the above summary of presumptions and threats connected to positive details supplied in this news release in order to offer securityholders with a more total viewpoint on future operations and such details might not be suitable for other functions. Readers are warned that the foregoing lists of aspects are not extensive. These positive declarations are made since the date of this news release and we disclaim any intent or responsibility to upgrade openly any positive details, whether as an outcome of brand-new details, future occasions or outcomes or otherwise, aside from as needed by suitable securities laws.(* )This news release consists of future-oriented monetary details and monetary outlook details (jointly, “FOFI “) about Horizon’s potential outcomes of operations, running netbacks and parts thereof, all of which go through the exact same presumptions, danger aspects, constraints and certifications as stated in the above paragraphs. FOFI included in this news release was made since the date of this news release and was attended to the function of offering additional details about Horizon’s expected future company operations. Readers are warned that the FOFI included in this news release need to not be utilized for functions aside from for which it is divulged herein. Non-GAAP Steps This news release consists of non-GAAP procedures as additional explained herein. These non-GAAP procedures do not have a standardized significance recommended by International Financial Reporting Standards(” IFRS” or, additionally, “GAAP”) and for that reason might not be similar with the estimation of comparable procedures by other business. Neither TSX Endeavor Exchange nor its Policy Provider Company( as that term is specified in the policies of the TSX Endeavor Exchange) accepts obligation for the adequacy or precision of this release. SOURCE Horizon Petroleum Ltd.(* ).