Horizon acquires conventional gas concessions in Poland

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.

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.

Contact Tayvis Dunnahoe at tayvisd@ogjonline.com.

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