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 follows
the final regulatory approval from the Polish Mining Authority, allowing field operations to begin. The work, to be carried out by Exalo Drilling S.A., includes removing existing suspension plugs, verifying wellbore integrity, reperforating the reservoir, conducting an acid stimulation treatment, and performing a production flow test. The operations are set to start with rig mobilization on July 27, with field operations expected to commence around August 1. The testing aims to evaluate the long-term production potential of a naturally fractured Upper Devonian carbonate reservoir.
Why It's Important?
The Lachowice project is significant for Horizon Petroleum as it marks a critical step in their phased development plan to convert reserve potential into commercial production. The project currently holds NI 51-101-compliant 2P reserves of 34 Bcf and an additional 163 Bcf of risked 2C contingent resources. If successful, the project could become a major domestic source of natural gas for Poland, contributing to the country's energy security and reducing reliance on imports. The potential commercial production rates could lead to initial cash flow by early third-quarter 2027, providing economic benefits to the region and enhancing Horizon's market position.
What's Next?
Following the successful completion of the workover, stimulation and production testing are expected to begin in late August and continue into early September. Horizon Petroleum plans to provide additional operational updates as the testing program progresses. The results of these tests will determine the next steps in the development of the Lachowice gas field, potentially leading to full-scale production and further investment in the region.
