Horizon's Polish Play: A Calculated Bet on European Energy Security

CALGARY, AB – June 15, 2026 – In a move that underscores the shifting dynamics of European energy, Calgary-based Horizon Petroleum has finalized its complete acquisition of key natural gas concessions in southern Poland. After a protracted negotiation period, the company has closed a restructured deal with San Leon Energy, securing 100% ownership of its Polish subsidiaries and the valuable assets they hold. More than a simple transaction, the revised agreement reveals a calculated long-term strategy, trading higher upfront cash for full control over future profits and a pivotal role in Poland's drive for energy independence.

At the heart of the deal are the Bielsko-Biala and Cieszyn concessions, a sprawling 1,100km² territory that includes what is considered one of Poland's largest undeveloped gas fields, Lachowice. By finally bringing this transaction to a close, Horizon Petroleum transitions from a hopeful stakeholder to the sole operator, now fully empowered to unlock the region's significant energy potential.

A Strategic Shift in Deal-Making

The final agreement looks markedly different from the one originally announced. The initial terms stipulated a payment of US$1.08 million in cash, C$1 million in Horizon shares, and a 6% Net Profits Interest (NPI) payable to San Leon Energy. The revised deal, however, simplifies the structure dramatically: a final, all-cash consideration of US$1.6 million.

This change is a classic case of strategic trade-offs. Horizon committed an additional US$520,000 in cash upfront, a significant sum for a junior explorer. In exchange, it eliminated two major long-term burdens. First, it avoided the issuance of C$1 million in shares, preventing the dilution of its existing shareholders' equity—a crucial consideration for maintaining investor confidence. Second, and perhaps more importantly, it terminated the 6% NPI. This move ensures that Horizon will retain 100% of the net profits from its Polish operations, a decision that could yield immense returns if the Lachowice field lives up to its promise.

Dr. David Winter, CEO of Horizon, framed the new terms as a win-win. "We are very pleased to have finally concluded the transaction with San Leon," he stated. "The amended terms benefit both companies. The all-cash consideration meets both companies needs and for Horizon removes the dilution associated with issuing common shares. The termination of the NPI will lead to an increase in Horizon's gas reserves and reserve value and payment of the consideration reduces the debt on our balance sheet."

For San Leon Energy, the deal provides a clean and immediate cash exit, concluding a multi-year strategy to divest from its Polish assets and concentrate its resources on its core operations in Nigeria. For Horizon, the path is now clear to maximize the value of its assets without sharing the upside.

Fueling a Nation's Energy Ambitions

The significance of this deal extends far beyond Horizon's balance sheet. It plugs directly into one of the most urgent geopolitical issues of our time: European energy security. Poland has been at the forefront of efforts to reduce its reliance on foreign energy sources, a policy that has only gained momentum in recent years. The country's national energy strategy identifies natural gas as a critical "transition fuel" to move away from its heavy dependence on coal while supporting the integration of intermittent renewable energy sources.

Despite this ambition, a major supply gap remains. Poland's domestic gas production currently satisfies only about 25% of its needs, with consumption projected to rise by nearly 50% by 2030. This makes the development of domestic resources a national priority. Horizon's assets, particularly the Lachowice field, are poised to make a substantial impact. Industry estimates suggest the field has the potential to produce over 10% of Poland's current domestic gas output, a significant step toward bolstering the nation's energy independence.

By taking full control, Horizon is now positioned as a key private-sector partner in Poland's public policy objectives. The company's success in developing these fields will be directly linked to enhancing Poland's ability to control its own energy future.

The Price of a Clean Slate: The Kety Well Legacy

Buried in the details of the amended terms is a fascinating subplot that highlights the complexities of modern energy deals. In consideration for terminating the NPI, Horizon's Polish subsidiary, EKZ, has agreed to assume all future liabilities for the Kety well. This well, drilled by San Leon and Polish state-owned PGNiG in 2015, was plugged and abandoned as a dry hole. However, it still exhales a small amount of methane from its casing.

Horizon has now taken on the responsibility to monitor the well, remediate it if necessary, and absorb any associated costs. On the surface, this appears to be the assumption of a potentially costly environmental liability. The costs to permanently plug and reclaim abandoned wells can range from tens of thousands to over a million dollars in complex cases.

However, this move also provided the leverage needed to eliminate the 6% NPI, a far greater long-term financial encumbrance. It demonstrates a pragmatic approach to deal-making: taking on a manageable, known environmental task in exchange for a much larger share of future profits. Furthermore, it allows Horizon to position itself as a responsible operator, willing to address legacy environmental issues as part of its operational footprint.

From Boardroom to Bedrock: The Road to First Gas

With the transaction finalized, Horizon is wasting no time moving from acquisition to execution. The company has already commenced field operations for the Lachowice 7 well pad construction in the second week of June 2026. The critical workover of the existing well is slated to begin in July, a key first step in a phased development plan.

The immediate goal is to bring this first well into production and achieve initial cash flow by the latter half of the first half of 2027. Production data from this well will be crucial for refining the full-field development strategy. Looking further ahead, Horizon plans to launch a 75 km² 3D seismic program in the second quarter of 2027 to map the reservoir in greater detail.

This will inform a broader development plan involving more wells, a central gas processing facility, and a pipeline to connect to the regional grid, with a target production of over 40 million standard cubic feet per day. The company is actively engaging with local municipalities on land zoning and with regional pipeline operators on infrastructure access, laying the groundwork for a project that is now, finally, entirely its own.