Horizon Petroleum closes $4,000,000 private placement

Canada NewsWire CALGARY, AB , July 7, 2026 /CNW/ -  Horizon Petroleum Ltd. (TSXV: HPL) (FRA: HPM) (Tradegate: HPM) ("Horizon" or the "Company") is pleased to announce that further to its press release dated June 23, 2026 and subject to TSX Venture Exchange acceptance, it has closed its oversubscribed, unit private placement ("Units") of the company at a price of $0.15 per unit, for aggregate gross proceeds of $4,125,950. Dr. David Winter, CEO of the Company commented: "We are pleased to close this oversubscribed financing and are excited to begin work with the well workover and production testing operations at the Lachowice 7 gas well. The well site construction is complete, the wellhead has been installed, and we are ready to receive the workover rig as soon as the contract with the rig supplier is finalized.  We expect to complete the well workover and production testing program over the next three months.

These operations are the key first step towards our goal to establish early production from the Lachowice gas development. We are evaluating several gas monetization options open to us for the early production phase. These include gas to power - generating and selling electricity into the local electricity grid, compressed natural gas for direct sale to end users and gas supply for a modular data center.

We look forward to updating shareholders as we progress with work in the field and our plans for the full field development over the next 3-4 years unlocking the asset value potential exceeding US$500 million. The Lachowice development will play a significant part in increasing domestic gas supplies in Poland and so assist the country's goals of energy independence and security.   We are very pleased that the project has received a great deal of support from the local authorities and people living in the area. The interest and support of our shareholders and key advisors at Leede Financial is much appreciated by the Company and has been instrumental in this successful financing." The Company issued 27,506,333 Units at a price of CAD$0.15 for gross ‎proceeds of ‎‎CAD $4,125,950.

The Units comprised: (i) one common share in the capital of the Company ‎‎‎("Common Share"), and (ii) one transferable share purchase ‎‎half warrant entitling the holder ‎‎thereof to ‎‎acquire one Common Share at a price ‎of CAD$0.25 ("Warrant") per ‎‎share. The rights under the Warrants have a term of 36 months ‎following the closing ‎date. The funds will be used to advance the Company's Lachowice gas development project in Poland and for general working capital.‎ In connection with the private placement, the Company paid finder's fees of $267,361 cash and 1,782,410 finder warrants with an exercise price of $0.15 per warrant with an expiry date of July 3, 2028.

The company intends to use the proceeds from the offering to complete the workover and production testing of the Lachowice 7 gas well, further advance the gas development at Lachowice and work programs in the Cieszyn concession, and for general corporate purposes. All securities issued under the offering, including securities issuable on exercise thereof, are subject to a hold period expiring four months and one day from the date hereof. Multilateral Instrument 61-101 – Related Party Transactions Two Directors of the Corporation subscribed for 4,000,000 Units for a total principal amount of $600,000 with the same terms which constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101.