Tayvis Dunnahoe
Exploration Editor
Horizon Petroleum Ltd. will target undeveloped conventional natural gas discoveries in two concessions in Poland's Rotliegendes basin and its Carpathian foldbelt. The Cieszyn and Bielsko-Biala concessions cover a combined 3,030 sq km.
The Bielsko-Biala concession, in the Carpathian thrust foldbelt in southern Poland, contains the Lachowice-1 discovery where Polish Oil & Gas Co. encountered 184 m of Devonian gas-bearing carbonates in 1984. By the mid-1990s, operators had drilled seven additional wells, five of which encountered Devonian-aged gas columns and shows. Lachowice-1, Lachowice-7, and Stryszawa-2K are the primary wells of interest, the company said. Horizon expects to develop the field through sidetracks in suspended wells and is targeting the start of production by second-half 2018. Pipeline infrastructure with ample capacity lies 10 km from the Lachowice gas discovery.
The Cieszyn concession, neighboring the Bielsko-Biala, is prospective for Palaezoic and Tertiary gas deposits, however much of the drilling activity in this region has focused on Miocene-aged sands trapped in the thrustbelt structures at 400-800 m.
Debowiec-Slaski, Kowale, and Pogorz gas fields are existing Miocene-age discoveries. Along the trend in the Czech Republic, discoveries include Horni Zukov, Bruzovice-Frydek, Pribor, and Choryne gas fields. Horizon said future work in this concession will be aided by the availability high-quality seismic imaging and low exploration well costs. The Tertiary-aged reservoirs trend eastward into the northern part of the Beilsko-Biala concession.
Horizon acquired its concessions from Dublin-based San Leon Energy PLC. In all, the deal included five concessions. In addition to the primary Bielsko-Biala and Cieszyn concession, Horizon acquired the Prusice and Kotlarka concessions and added a third unnamed concession, which is under application.
Kotlarka and Prusice are in the Permian-aged Rotliegendes basin in southwest Poland. They lie on trend with Rotliegendes sandstones and carbonates of the Zechstein formation, which have produced more than 3 tcf of gas since initial discovery. Nearby gas fields include Zuchlow, Zalecze, Rawicz, Borzecin, Bogdaj-Uciechow, and Wierzchowice. The region has an extensive gas production and pipeline infrastructure.
Horizon previously paid a nonrefundable deposit of $100,000 and advanced a loan of $100,000 as part of this transaction. The company will finalize the acquisition with a net cash payment of $900,000. Horizon will hold 100% working interest in the concessions.