10:00 AM EDT, 05/08/2025 (MT Newswires) -- Horizon Petroleum (HPL.V), which jumped more than 30% yesterday, was edging down today after overnight Wednesday providing a concession update on its gas assets in Poland.

On the Cieszyn Concession, the company said the initial technical review defined several priority areas of prospectivity for new 3D seismic acquisition programs, which are planned for 2026. It added that the new 3D seismic acquisition programs will be "key to delineating the playfairways and prospects of the Miocene aged sandstone reservoirs to support future drilling programs."

The company added that many of the 48 existing wells in Cieszyn reported significant gas tests of over 1mmscf/d from well depths of 400m to 1,500m and that the gas tested and produced from two producing gas fields adjacent to the Cieszyn licence area was "high quality, sweet (no H2S and minimal CO2) with methane contents typically higher than 90%."

The company stated that seven "on trend" gas fields directly to the west in neighbouring Czechia produce gas from sandstone reservoirs of Miocene age, adding that these reservoirs were the same Miocene aged sandstone formations that were found in the Cieszyn Licence area.

The company, which intends to drill its first new well by late 2026 or 2027, is thinking about speeding up the plan by drilling "twin" wells beside existing wells that previously tested gas but were never put on permanent production. Well costs are expected to be in the range of US$1 million to US$2 million and associated economics are expected to be positive.

The vompany has previously reported on its progress in its operations at the Lachowice gas development in the Bielsko-Biala concession where it has commenced operations on the initial development of the field. The field has assigned 2P net reserves of 34 BCF and 164 BCF of Net 2C Contingent resources with net asset values of NPV10 of US$84 million and US$431 million respectively, and 118 bcf of risked best estimate prospective resources (466 bcf unrisked) in undrilled area of the field.

The company also added that the development of its assets and the planned start of production will help meet the Polish government's policies to increase domestic gas production.

"The initial review of the seismic and well data has confirmed our belief that the Cieszyn concession contains significant gas potential and we look forward to our work programs over the next year to delineate the prospects for our initial drilling targets that are close to wells that have successfully tested gas," said Horizon Petroleum's Chief Executive Officer David Winter. "The potential is supported by the shallower depths to the target reservoirs of less than 1,000m, and proximity to natural gas infrastructure that will allow us to bring wells into production relatively quickly. Lower cost of drilling, proximity to infrastructure reducing tie-in times in the strong Polish gas pricing environment of around US$12/mcf will drive attractive economic returns to stakeholders".

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