Dr. David Winter reports

HORIZON PETROLEUM COMPLETES SUCCESSFUL FLOW TESTING AT THE LACHOWICE-7 GAS WELL IN SOUTHERN POLAND

Horizon Petroleum Ltd.'s wholly owned Polish subsidiary, Energia Karpaty Zachodnie sp. z o.o. (EKZ), has successfully completed the main flow portion of the production testing program at the Lachowice-7 (L7) well in the Bielsko-Biala concession in southern Poland. The well has now been shut in for a planned 30-day pressure build-up period, following which the company expects to finalize an initial production commercialization plan for the property.

Dr. David Winter, chief executive officer of the company, commented: "The successful completion of the production flow testing represents a further significant operational milestone for Horizon as it advances its plans to bring the Lachowice gas development into production. We have accelerated plans to commence first production and cash flow through an early production phase targeting the third quarter of 2027. This development objective is to establish power generation and potential compressed natural gas (CNG) sales, subject to completion of the required technical evaluations, facilities engineering planning and design, commercial arrangements, and regulatory approvals."

Lachowice-7 flow test results

Following completion of the nitrified acid stimulation program on Sept. 23, 2026, the well was flowed back through temporary, on-site production testing equipment. The testing program followed the mechanical workover operations and the subsequent acid stimulation. Approximately 4,500 barrels (bbl) of completion fluid were lost into the formation during these workover and stimulation operations indicating a highly permeable, naturally fractured reservoir.

Production was initiated using coiled tubing and nitrogen to unload the well. The program comprised an initial cleanup flow period, a premain flow test and a six-day main flow test on a restricted choke.

Initial cleanup flow period:

• A 30-hour cleanup flow period was conducted.
• The final recorded flow rate was 4.95 million cubic feet per day (mmcf/d) at a flowing wellhead pressure of 2,100 pounds per square inch (psi) on a 24/64th-inch choke. (Note: This is a short-term rate recorded at the end of the cleanup period and should not be interpreted as a stabilized long-term production flow rate).

Premain flow test:

• The final recorded flow rate was 6.75 mmcf/d at a flowing wellhead pressure of 2,362 psi on a 24/64th-inch choke.
• This was a short-term peak rate recorded over an eight-hour premain flow period, on a larger choke than the main flow test, and should not be interpreted as a stabilized long-term production rate.

Main flow test:

• Over the six days of the main flow period, gas flow rates initiated at five mmcf/d with a wellhead flowing pressure of 2,550 psi declining to 2.5 mmcf/d at a flowing pressure of 1,900 psi while on an 18/64th-inch choke size. The average surface pressure drawdown was 25 per cent based on surface pressure data. These results are in line with the company's performance forecast for the L7 well and consistent with the anticipated performance from a naturally fractured reservoir.
• The well has now been shut in for the planned 30-day pressure build-up period. Analysis of the pressure build-up data, together with the flow test results, will be used to optimize the company's understanding of reservoir characteristics and deliverability, and to guide the next stage of development planning, including facility design and development drilling optimization.

During the workover and stimulation operations, approximately 4,500 barrels of completion fluid were lost into the wellbore and formation. To date, approximately 1,680 barrels of this fluid have been recovered, representing approximately 37 per cent of the injected volume. The company considers load fluid recovery an important factor in evaluating the well's cleanup and production performance. Decreasing completion fluid recoveries over the course of the well test support the company's prediction that the majority of this fluid will remain in the formation.

Across all phases of the flow testing program, Lachowice-7 produced a total of approximately 26.5 mmcf of natural gas, 170 barrels of condensate and 1,680 barrels of completion fluid. These cumulative volumes include production during the initial cleanup, premain flow and six-day main flow periods. The results provide additional data for evaluating reservoir performance and the potential for early commercial production.

Next steps toward early production

Based on the results from this flow test, the company is now accelerating its efforts to commence an early production phase targeting the third quarter of 2027. The commercialization strategy objective is to establish initial electricity sales through a gas to power facility while proceeding with plans for full scale field development.

The planned commercialization strategy also includes pursuing opportunities to use produced gas for CNG sales. The timing and scope of the early production phase will depend on the results of this continuing technical evaluation, engineering and facilities planning, and are subject to commercial arrangements, financing and applicable regulatory approvals.

Horizon will provide a further update following completion and interpretation of the 30-day pressure build-up data.

About Horizon Petroleum Ltd.

Calgary-based Horizon Petroleum is focused on the appraisal and development of natural gas resources and clean energy opportunities in Europe, with the objective of contributing to European energy independence and security. Horizon is advancing its Polish natural gas assets through a technically focused, phased development strategy designed to unlock their commercial potential. Horizon's management team and board of directors comprise oil and gas, business, and finance professionals with significant international experience.

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