Horizon Petroleum Ltd. (the “Company” or “Horizon”) (TSXV: HPL) is pleased to announce that the Polish Government has approved its qualification application.
Image: Onshore oil and gas pumps. Photo: courtesy of Vlado/FreeDigitalPhotos.net.
The approval qualifies Horizon to conduct oil and natural gas activities in Poland and was received by Horizon on April 30, 2019. The qualification process was initiated at the beginning of 2018 and is a critical step for the Company to complete the acquisition of concessions in Poland (the “Acquisition”), which was previously announced on September 19, 2017. The Company had expected to receive qualification and close the Acquisition in the fourth quarter of 2018 or early 2019. With the qualification approval, Horizon now expects to close the Acquisition in the second quarter of 2019.
Once the Acquisition is closed, Horizon will work towards closing the joint venture contemplated by the letter of intent (“LOI”) with a private European entity (the “Farmee”) as previously announced on August 18, 2018. Under the terms of the LOI, the Farmee has agreed to fund 100% of the capital expenditures required to bring the Lachowice field to first production, with Horizon continuing as operator. In return, the Farmee will receive 50% of the equity in Horizon’s subsidiary that will hold the Bielsko-Biala Concession. Horizon and the Farmee will agree to a drilling and development program to bring the Lachowice field on production. The LOI is subject to a number of conditions, outlined in Horizon’s August 18, 2018 press release.
Horizon’s current development plan has the Company and the Farmee commencing drilling and testing of the first well in the fourth quarter of calendar 2019, with first production to occur by mid 2020. Achieving these timelines is dependant upon a number of factors, including certain approvals from the government in Poland, the approval of the Acquisition by the TSXV, and raising sufficient funds to close the Acquisition and commence operations.
Source: Company Press Release