Dr. David Winter reports

HORIZON PETROLEUM COMMENCES FIELD WELL PRODUCTION TESTING OPERATIONS AT LACHOWICE IN POLAND AND CLOSES OVERSUBSCRIBED CONVERTIBLE DEBENTURE FINANCING

Horizon Petroleum Ltd.'s wholly owned Polish subsidiary, Energia Karpaty Zachodnie sp zoo (EKZ), has executed a drilling and services contract with Exalo Drilling S.A. for the re-entry, recompletion, stimulation and production flow testing of the Lachowice-7 (L7) well located within the company's 100-per-cent-owned Bielsko-Biaa concession in southern Poland.

Exalo has confirmed that rig mobilization is scheduled to commence on July 27, 2026, with field operations expected to begin on or about Aug. 1, 2026. Concurrent with the execution of the rig contract, EKZ has also received the final regulatory approval required to commence operations. The Polish Mining Authority has approved the L7 operational work program, completing the permitting process for the planned workover.

With the recent successful closing of the company's financings, construction of the access road and well site, execution of the drilling contract, landowner access agreements, and receipt of all required regulatory approvals, Horizon has now completed all critical preoperational milestones and is ready to commence field operations.

The L7 workover program is designed to confirm the long-term production flow potential of the naturally fractured carbonate reservoir at Lachowice. The work program is as follows:

• Re-enter the wellbore and remove the existing mechanical and cement suspension plugs;
• Pressure test and verify the mechanical integrity of the wellbore;
• Reperforate and prepare the well for recompletion in the Upper Devonian aged naturally fractured reservoir;
• Stimulate using a diverted acid stimulation and production test the reservoir to confirm sustainable production flow performance.

Subject to the successful removal of the suspension plugs and confirmation of well bore integrity, stimulation and production testing are expected to commence near the end of August and continue into early September, 2026.

Dr. David Winter, chief executive officer of Horizon, commented: "Reaching the operational phase of the Lachowice project represents a significant milestone for Horizon. Our technical and operations teams in Poland and Calgary have put a great deal of effort into the technical planning, engineering and permitting for the operations at Lachowice. As we have previously reported, the company has so far recognized, NI 51-101 compliant, 2P reserves of 34 BCF and an additional 163 BCF of Risked, 2C, contingent resources at Lachowice, with over 1.2 TCF of gas in place. This production test is the first step in our phased development plan to convert this reserve potential into commercial production, targeting initial cash flow in early Q3 2027. We appreciate the support we have received from the Polish Ministry and local authorities, our neighbours at Lachowice and our shareholders throughout this process. We look forward to executing the workover safely and efficiently, and to confirming the long-term production capability of the Lachowice gas accumulation, which we believe has the potential to become a significant new domestic source of natural gas for Poland."

The company will provide additional updates as operations progress.

Oversubscribed debenture financing

The company is also pleased to announce that, further to its release dated July 15, 2026, and subject to TSX Venture Exchange final acceptance, it has closed its oversubscribed, secured, convertible debenture units offering of the company at a price of $1,000 per unit, for aggregate gross proceeds of $681,000. The company issued 681 units.

The convertible debentures bear interest from the closing date of July 23, 2026, at 7 per cent per annum until the date that is 36 months following the closing date with interest paid semi-annually in arrears in cash or in shares at the company's option. The convertible debenture will be secured and ranking on default in fourth position behind the currently issued convertible debentures due on Dec. 19, 2027, Dec. 29, 2027, and Feb. 27, 2028 (Series 1 debentures), the convertible debentures due on March 25, 2028 (Series 2 debentures), and the convertible debentures due on April 13, 2028, and April 24, 2028 (Series 3 debentures).

Each holder of a secured convertible debenture unit shall have the right, at its option, at any time up to and including the maturity date, to convert any or all of the secured convertible debenture units into equity units on the basis of each $1,000 principal amount for (i) 5,000 common shares of the corporation issued at 20 cents per common share, and (ii) 2,500 common share purchase warrants, with each warrant exercisable until 36 months from closing the debentures, into one common share at a price of 40 cents.

This is a correction of the company's July 15, 2026, press release that described each unit as comprising one common share and one-half of a common share purchase warrant. The total number of potential shares issued on conversion and warrant exercise remains unchanged.

The company paid finders' fees of $47,670 cash and 238,350 finder warrants with an exercise price of 20 cents per warrant with an expiry date of July 23, 2028.

The company intends to use the proceeds from the offering to complete the workover and production testing of the Lachowice 7 gas well, pay work program obligations in the Cieszyn concession, and provide working capital for general corporate purposes in Poland and in Canada.

All securities issued under the offering, including securities issuable on exercise thereof, are subject to a hold period expiring four months and one day from the date hereof.

The offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. The financing was treated as a loan with bonus warrants by the TSX Venture Exchange.

About Horizon Petroleum Ltd.

Calgary-based Horizon is focused on the appraisal and development of natural gas reserves and clean energy sources to increase energy independence and security in Europe. The management and board of Horizon consist of oil and gas, business, and finance professionals with significant international experience.

We seek Safe Harbor.