Horizon Petroleum Ltd. announced an updated independent reserve and resources evaluation ("Reserves and Resource Report") for the Lachowice conventional natural gas field in the Bielsko-Biala concession in southern Poland. The Reserves and Resources Report was prepared by APEX Global Engineering Inc. ("APEX"), the Company's independent qualified reserves evaluator, with an effective date of December 31, 2023 and was prepared in compliance with the standards set out in National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators and the Canadian Oil and Gas Evaluation Handbook (COGEH). Despite being essentially vertical in their design, and using sub-optimal drilling and completion methods for naturally fractured formations, the wells tested at rates reported by former operators to be up to 5.8 MMcf/d, 8.9 MMcf/d, and 2.5 MMcf/d, respectively during the original open hole and cased hole tests.

The Company is relying on production test reports from the former operators, the details of which are incomplete. Operating netback for the G2P project is forecast to be approximately USD 5.86/Mcfe for the first 12 months of production based on the current price forecast at the time of the Reserves and Resources Report. Over the life of the project, for the probable reserves case and forecast price, the operating netback is expected to be USD 7.81/Mcfe.

The Reserve and Resource Report attempts to gauge the impact the war may have on produced hydrocarbon pricing, as well as the potential for commercial development of the Company's project. The commodity pricing used in the Reserves and Resource Report modified the pricing from the Company's previous reserves report to reflect current pricing. The Reserve and Resource Report uses gas prices which reflect prices prior to the impact of Covid-19 and before the commencement of the Russian con lict.

Additional risks and uncertainties include but are not limited to: (i) the fact that there is no certainty that the zones of interest will exist to the extent estimated or that the zones will be found to have natural gas with characteristics that meet or exceed the minimum criteria in terms of net pay thickness and/or porosity, or that the natural gas will be commercially recoverable to the extent estimated; (ii) the fact that there is No certainty that any portion of the probable reserves and contingent and prospective resources will be commercially viable to produce; (iii) the fact that the Company must hire an operations team and executive team in both Calgary and Poland in order to execute on the development plan, and there are no guarantees that suitably qualified technical and professional staff and/or consultants will be available; (iv) the lack of additional financing to fund the Company's development activities and continued operations; (v) the risks associated with obtaining approvals to access land to drill wells or install infrastructure and facilities in a reasonable time frame; the Polish regulatory regime is relatively stable but is marked with long approval processes relative to North American jurisdictions; (vi) the risks in acquiring or constructing adequate natural gas infrastructure to produce and sell natural gas, and whether capacity will be available in the existing main pipeline system at reasonable costs; (vii) the risk that there may not be a drilling rig available to drill the required wells, and the risk that if a rig mobilization is required from outside of Poland, that the costs may be prohibitive; (ix) risks inherent in the international oil and natural gas industry; The chance that an exploration project will result in the discovery of petroleum is referred to as the " chance of discovery." The main contingencies identified in the Reserves and Resources Report which prevent the classification of the resources as reserves are the successful recompletion of existing abandoned wells, the expected decline rates and the approval and completion of new development and new re-entries. Table 6 below outlines the positive and negative factors which may be relevant to the Reserves and Resource Report assumptions and estimates. The forward-looking information is based on certain key expectations and assumptions made by Horizon's management, including expectations and assumptions previously in this press release under oil and assumptions previously in this press press release under oil and tax laws; future production rates, and estimates of operating costs; future wells; future production rates and estimates of capital expenditures; future wells; anticipated timing and estimates of capital expenditures; anticipated timing and resource volumes; anticipated timing and resource expenditures; the success obtained in drilling new wells; the Reserves and estimates which may be relevant to the success obtained in carrying out planned activities; the success obtained in the Reserves and resource expenditures; the Reserves and assumptions made by Horizon's capital expenditures; the Reserves and resource expenditures.

The success obtained in carrying out of capital expenditures; the success obtained in the success obtained in drilling new drilling operations; the Reserves and resource volumes which may be relevant resources; the Reserves and results of capital expenditures. The success obtained in drilling operations; the success obtained in the successful obtained in carrying out planned activities.