Horizont kicks off prep work at Polish gas project

Horizon Petroleum has kicked off preparatory work at its Lachowice natural gas project in Poland, as part of a broader push to develop gas reserves in Europe, the Canadian producer announced on February 4.

The Calgary-based firm is preparing to re-enter the Lachowice 7 well, targeting first gas production by late 2025 or early 2026. CEO David Winter said the project would support the company’s push to establish itself as a profitable mid-sized energy producer focused on the European market. Lachowice holds proven and probable (2P) gas reserves of 34bn cubic feet (960mn cubic metres) and risked contingent 2C resources of 163 bcf (4.62bn cubic metres), with an estimated net present value of $84.5-431mn respectively, according to a previously disclosed reserve and resource report.

Work has begun at the well site to assess the condition of the L7 wellhead and secure materials for the planned workover. The company has secured land access agreements with all landowners in the area, and local authorities and residents have responded positively to the project, it said. Horizon plans to conduct the workover this summer, pending the relocation of a nearby high-voltage power line.

If the re-entry and flow test at L7 are successful, Horizon will install a small gas processing facility. The company is evaluating options to monetise production, with engineering firms assessing local infrastructure for gas-to-electricity generation, compressed natural gas (CNG), or mini-LNG sales.

The Lachowice gas field forms the foundation of Horizon’s European expansion strategy. The company’s strategy is to develop previously discovered oil and gas resources in Poland and elsewhere in onshore Europe, prioritising assets with low-risk, near-term production potential. It aims to leverage its technical expertise to develop geologically complex fields using advanced seismic imaging and drilling technologies.

Horizon said its direction aligns with Europe’s push to transition away from coal and reduce dependence on Russian gas imports. Continental Europe’s indigenous gas supply has been declining for years, with the rate accelerating with the closure of the Netherlands’ giant Groningen gas field last year. This has left it increasingly reliant on imports.

Horizon said it saw a role for domestically produced gas in bridging the gap between rising energy demand and the slower growth of renewable supply. It plans to minimise methane and greenhouse gas emissions using established technologies.

The company also intends to diversify its asset base by acquiring licences across multiple jurisdictions. The Lachowice and Bielsko-Biala concessions in Poland represent the first step in a broader effort to expand across Central and Eastern Europe and the Mediterranean region, it said.

Horizon said it will update shareholders in the coming months as work progresses at Lachowice and on its broader European expansion plans.