Horizon Petroleum Ltd., Calgary, has signed a farm-in agreement on Lachowice natural gas field in the Bielsko-Biala concession in southern Poland, a concession the company is in the process of acquiring (OGJ Online, Sept. 21, 2017).
The farmee, a private European entity, agreed to fund 100% of the capital expenditures needed to bring the field on production, estimated at $8 million. Horizon will continue as operator. In return, the farmee will receive 50% equity in the Horizon subsidiary that will hold the concession. Future expenditures and profits on the concession will be shared equally.
Bielsko-Biala, in the Carpathian thrust foldbelt, contains the Lachowice-1 discovery where Polish Oil & Gas Co. encountered 184 m of Devonian gas-bearing carbonates in 1984. Lachowice-1, Lachowice-7, and Stryszawa-2K are the primary wells of interest, Horizon has said.
The farm-in obligation includes funding all costs related to drill, complete, and test the first well, along with required surface production equipment. The first well is expected to spud late in the first quarter 2019, with initial production estimated at 3 MMcfd (facilities constrained) expected to begin in that year’s fourth quarter.
The agreement, related only to the Bielko-Biala Concession, is nonbinding and subject to conditions, including the closing of Horizon’s acquisition of the concession—part of a five concession-deal expected to close in this year’s third quarter—and regulatory approvals.
Contact Mikaila Adams at [email protected].
