What's Happening?
Horizon Petroleum has commenced production testing at the Lachowice gas field in southern Poland. The company has executed a drilling and services contract for the re-entry, recompletion, and production testing of the Lachowice-7 (L7) well. This development
follows the final regulatory approval from the Polish Mining Authority, allowing Horizon to begin field operations. The project is located at the company's Bielsko-Biała concession, with Exalo Drilling S.A. handling the operations. The workover aims to assess the long-term production potential of a naturally fractured Upper Devonian carbonate reservoir. Operations include removing suspension plugs, verifying wellbore integrity, reperforating the reservoir, conducting an acid stimulation treatment, and performing a production flow test. Horizon estimates the field contains over 1.2 trillion cubic feet of gas in place, with 34 billion cubic feet of 2P reserves and an additional 163 billion cubic feet of risked 2C contingent resources.
Why It's Important?
The Lachowice project represents a significant opportunity for Horizon Petroleum to establish a new domestic source of natural gas for Poland. If successful, the project could contribute to Poland's energy security by reducing reliance on imported gas. The development aligns with broader European efforts to diversify energy sources and enhance energy independence. For Horizon, successful production testing could lead to commercial production and initial cash flow by early third-quarter 2027, marking a critical step in their phased development plan. This project could also stimulate local economic activity through job creation and infrastructure development.
What's Next?
Following the successful completion of the workover, Horizon plans to begin stimulation and production testing in late August, continuing into early September. The company will provide operational updates as the testing progresses. If the production tests confirm commercial viability, Horizon will proceed with further development phases, potentially leading to full-scale production. Stakeholders, including local communities and the Polish government, will likely monitor the project's progress closely, given its potential impact on regional energy supply and economic growth.
