HORIZON PETROLEUM ANNOUNCES AMENDED DEAL TERMS AND FINAL CLOSING FOR ACQUISITION OF 100% OWNERSHIP OF IT'S POLISH ASSETS

Horizon Petroleum Ltd. has completed the acquisition of its Polish subsidiaries, Energia Karpaty Zachodnie Sp. Z.o.o and Energia Karpaty Zachodnie z ograniczona odpowiedzialnoscia Sp.K., from San Leon Energy for an all-cash consideration of $1.6 million. The transaction, finalized on June 10, 2026, also included the termination of a 6% Net Profits Interest (NPI) previously held by San Leon. This acquisition allows Horizon to gain full ownership of the Bielsko-Biala and Cieszyn Concessions, enhancing its operational footprint in Poland's natural gas sector.

Horizon Petroleum, based in Calgary, focuses on the appraisal and development of natural gas reserves and clean energy sources, aiming to bolster energy independence and security in Europe. The company’s management comprises professionals with extensive experience in the oil and gas industry, business, and finance. The acquisition of EKZ marks a significant strategic move for Horizon, as it enables the company to consolidate its assets and streamline operations in a region that is increasingly pivotal for energy supply diversification in Europe.

The amended terms of the deal reflect a shift in strategy for both Horizon and San Leon Energy. Originally, the agreement included a combination of cash and share consideration, along with the NPI. However, due to delays in the transformation of the concessions, Horizon assumed responsibility for completing this process. The revised all-cash deal eliminates potential dilution from share issuance and allows Horizon to focus on increasing its gas reserves and reserve value. The termination of the NPI is particularly noteworthy, as it not only simplifies the financial structure but also allows Horizon to assume greater control over its future revenue streams.

The Polish energy market is undergoing significant changes, driven by the country’s efforts to enhance energy independence and reduce reliance on external sources. The acquisition positions Horizon to play a crucial role in this transition, particularly in developing its 1,100 km² land base in southern Poland. As Europe continues to navigate challenges related to energy supply and security, companies like Horizon are well-positioned to capitalize on emerging opportunities in the natural gas sector.

In conclusion, the completion of this transaction underscores the dynamic nature of the energy market in Europe and highlights the strategic maneuvers companies are making to adapt to evolving conditions. Horizon Petroleum's acquisition of EKZ not only strengthens its asset base but also aligns with broader trends of increasing domestic energy production. As the market continues to shift, Horizon's enhanced position may facilitate its contributions to Poland's energy landscape and support the country’s goals for greater energy autonomy.