Horizon Petroleum Ltd. · TSXV:HPL
Horizon Petroleum — Investor Presentation (February 2025)
28 slides from Horizon Petroleum's investor presentation, Feb 28, 2025
Slide 1: Corporate Presentation: Building a European Conventional Natural Gas Development Company
Building a European Conventional Natural Gas Development Company CORPORATE PRESENTATION Horizon Petroleum TSXV: HPL Ltd. TSXV: HPL FRA:HPM Tradegate: HPM FRA:HPM Tradegate:HPM 1
Slide 2: The Value Proposition: Why Invest in Horizon Now?
THE VALUE PROPOSITION WHY INVEST IN HORIZON NOW? • We are a Canadian, publicly listed company • Acquired two highly prospective concessions that contain a large natural gas development In Poland with significant upside potential for reserve growth • An independent evaluation values the 2P reserves >
Slide 3: Strategy
STRATEGY • Acquire conventional natural gas and oil development and production assets in Europe and Mediterranean region • Target growing, liberalized natural gas markets that offer high commodity prices • Low entry cost opportunities, high operating netbacks, access to infrastructure, low minimum e
Slide 4: European Natural Gas: Strong Fundamentals
EUROPEAN NATURAL GAS: STRONG FUNDAMENTALS DOMESTIC NATURAL GAS PRODUCTION CONTINUES TO DECLINE • Legacy North Sea and Dutch natural gas fields are mature and declining • Prior to current energy crisis, 86% of supply from 3 countries: Russia (42%), Norway (34%), Algeria (10%). • LNG imports curre
Slide 5: Polish Natural Gas Market
POLISH NATURAL GAS MARKET Natural Gas Fundamentals Poland Energy Prod vs Consumption • Rising demand with increasing imports and flat domestic production • Strong political push to find alternative sources of gas to replace Russian supply • Strong political and environmental push to replace coal
Slide 6: Polish Assets: Summary
POLISH ASSETS: SUMMARY FOUNDATION ASSET • Acquired 100% interest in a conventional natural gas development asset in Poland • 197 Bcfe 2P net reserves + 2C Risked Contingent Resources with US$515MM Before Tax NPV10 in core field area 2,3,4 • Upside potential to access 1.2 TCF Gas in place • Establish
Slide 7: Polish Assets: Location
POLISH ASSETS: LOCATION • 1,130 km2 (279,229 acres) in two licenses (Bielsko- Biala, Cieszyn) in the Carpathian foreland basin TSXV: HPL FRA: HPM Tradegate: HPM 7
Slide 8: Bielsko-Biala Concession: Lachowice Field
BIELSKO-BIALA CONCESSION: LACHOWICE FIELD Warsaw Bielsko – Biala Lachowice field • Located in the Carpathian foothills • 950 km of legacy 2D seismic • Discovered with Lachowice-1 in 1986 • Seven wells drilled 1986 – 1996: • 130m - >300m gas columns • Tested gas rates up to 8.9 MMscf/d (see map
Slide 9: Lachowice Reserves and Resources
LACHOWICE RESERVES AND RESOURCES 1, 2, 3 • 2P reserves assigned to the Lachowice-1, Lachowice-7 and Stryszawa-2K wells • Risked Contingent resources in the fractures and tight matrix natural gas reservoirs in Lachowice-1, 2, 3a, 4, 7 and Stryszawa-2K wells • Risked Prospective Resources assigned t
Slide 10: Lachowice Asset Management Plan
LACHOWICE ASSET MANAGEMENT PLAN INITIAL DEVELOPMENT • Gas to power or CNG to establish production and cashflow within 12 months • Target production of 1.0 - 1.5 MMscf/d from workover Lachowice-7 well. • First cash flow forecast late 2025/Q1 2026 • Revenues of ~US$7-9MM/year in electricity or compres
Slide 11: Lachowice Asset Management Plan: Upside and Financial Strategy
LACHOWICE ASSET MANAGEMENT PLAN UPSIDE POTENTIAL • Assess the exploration potential of the remainder of the Bielsko-Biala and Cieszyn concessions within 12 months • Exploration drilling within the next three years to add further reserves and contingent resources • Exploration drilling to be funded f
Slide 12: Forecast Lachowice Cash Flows & Operating Metrics
FORECAST LACHOWICE CASH FLOWS & OPERATING METRICS Production-mmcf/day-Poland Avg Remaining 2025 2026 2027 2028 2029 2030 2031 2032 2033 Field Life Phase 1-G2P-mmcf/day 0.0 2.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Phase 2-Full Development - mmcf/day 0.0 0.0 15.5 43.0 40.6 41.8 41.8 42.1 35.7 13.6 Total-mm
Slide 13: Cieszyn Concession
CIESZYN CONCESSION • On trend with multi bcf fields including 2 excluded fields within the concession • Old wells (1940’s/50’s), limited and poor quality seismic and well data • High quality, shallow (400-1000m), Miocene aged sandstone reservoirs. Underlying Carboniferous aged source rocks • Potenti
Slide 14: Capital Structure
CAPITAL STRUCTURE SYMBOL: TSX-Venture: HPL SHARE PRICE* CAD $0.15 52 WEEK HIGH/LOW CAD $0.04 - $0.25 MARKET CAPITALIZATION CAD 8,091,280 SHARES OUTSTANDING 53,941,864 FULLY DILUTED SHARES 58,908,364 • SHARE PRICE – February 28, 2025 • WARRANTS – MARCH - MAY 2025 EXPIRY - 4,320,000 @ $0.075 • WARRANT
Slide 15: Trading Comparables
TRADING COMPARABLES HORIZON CANCAMBRIA TENAZ TOUCHSTONE COMPANY MCF ENERGY NG ENERGY ALVOPETROL PETROLEUM ENERGY ENERGY EXPLORATION AUSTRIA, CANADA, LOCATION POLAND HUNGARY COLOMBIA TRINIDAD BRAZIL GERMANY HOLLAND GAS WEIGHTING 100% 100% 100% 100% 56% 64% 100% 1P RESERVES (bcfe) 0 0 0 52 45 32 23 2P
Slide 16: Growth Strategy
GROWTH STRATEGY1 Commence Development Of Polish Reserves To Establish Near Term Cash Flow And Significant Medium- Term Growth • Target first natural gas production to generate and sell electricity in 2025 establishing annual revenues of ~$US 7-9MM from the Lachowice #7 well • Full field development
Slide 17: Why Invest in Horizon
WHY INVEST IN HORIZON1,2,3 • Compelling entry valuation to access 197 Bcfe 2P net reserves + 2C Contingent Resources with US$515 MM Before Tax NPV10 • Near-term work program to initiate early production and cash flow targeting late 2025 • Exposure to high European gas prices • strategic importance
Slide 18: Corporate Information
CORPORATE INFORMATION Dr. David A. Winter, CEO dawinter@horizon-petroleum.com +1 (403) 619-2957 Roger McMechan, President and COO roger.mcmechan@horizon-petroleum.com +1 (403) 870 1653 Corporate Website www.horizon-petroleum.com TSXV: HPL FRA:HPM Tradegate: HPM 18
Slide 19: Appendix: Legal Notices, Risk Advisories
APPENDIX LEGAL NOTICES, RISK ADVISORIES TSX-NEX: HPL.H TSXV: HPL FRA:HPM Tradegate:HPM 17 19
Slide 20: Management: International Experience
MANAGEMENT: INTERNATIONAL EXPERIENCE DR DAVID WINTER, CEO • 40 years experience in technical, management and leadership roles living and working in Latin America, Middle East, SE Asia and UK North Sea. British Petroleum, Sun Oil, Canadian Occidental (now CNOOC), Alberta Energy Company (now Ovintiv)
Slide 21: Board of Directors
BOARD OF DIRECTORS SHERN TAN LIANG • Founder and CEO of One Tree Partners, a licensed asset management firm in Singapore that has had over US$1bn in mining and commercial deal flow • Held increasingly senior management and executive roles at Citibank, UBS and Goldman Sachs in Singapore • Bachelor of
Slide 22: Disclaimer
DISCLAIMER FORWARD-LOOKING INFORMATION This information contained in this corporate presentation and the accompanying verbal presentation (the “Presentation”) contains forward-looking statements and forward-looking information (collectively, “forward-looking information”) within the meaning of app
Slide 23: Disclaimer (cont.)
DISCLAIMER (CONT.) Cautionary Statements The Presentation has not been approved by the Financial Conduct Authority and has been prepared for informational purposes only and does not constitute or form part of and should not be construed as any offer, invitation, solicitation or inducement to sell,
Slide 24: Risk Advisory
RISK ADVISORY The reserve and resource estimates of natural gas and natural gas liquids reserves provided in this presentation are estimates only, and there is no guarantee that the estimated reserves and/or resources will be recovered. Actual reserves and resources may eventually prove to be greate
Slide 25: Risk Advisory
RISK ADVISORY Estimates of resources always involve uncertainty, and the degree of uncertainty can vary widely between accumulations/projects and over the life of a project. Consequently, estimates of resources should generally be quoted as a range according to the level of confidence associated wit
Slide 26: Resource Definitions
RESOURCE DEFINITIONS Total Petroleum Initially in Place (“PIIP”) refers to the total quantity of petroleum that is estimated to exist originally in naturally occurring accumulations. It includes the petroleum that exists in known accumulations prior to production and the estimated quantities yet to
Slide 27: Resource Definitions
RESOURCE DEFINITIONS Possible Reserves are those additional reserves that are less certain to be recovered than probable reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved + probable + possible reserves (3P) Company Gross Reserves are
Slide 28: Resource Definitions
RESOURCE DEFINITIONS Contingent Resources –Development Pending and –Development On Hold are considered economic, Contingent Resources –Development Unclarified have economics that are undetermined, and Contingent Resources –Development Not Viable are considered sub-economic. Prospective Resources are
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