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CALGARY,
AB, March 16, 2023 /CNW/ - Horizon Petroleum
Ltd. ("Horizon" or the "Company") (TSXV: HPL.H)
announces that the proposed transaction for a certain European oil
and gas company first announced on January 12, 2023, has been
terminated. The Company could not reach final agreeable terms with
the vendor.
Trading in the Horizon shares on the NEX Board has been halted
at the request of the Company and is expected to resume on the NEX
once the resumption review process has been completed by the
NEX.
Horizon is currently working with the Polish government to
complete the Transformation Process in Poland as outlined below and looks forward to
commencing operations in Poland as
soon as the process is complete. Horizon holds the rights to a 100%
interest in two conventional oil & natural gas concessions in
Poland, known as Bielsko-Biala and Cieszyn, through two wholly
owned Polish subsidiary companies which the Company acquired from
San Leon Energy. The full details of the acquisition are described
in our Annual Financial Statements and Management Discussion and
Analysis. The Company has re-engaged with the Polish Ministry
of the Environment to complete the Transformation Process as
described in the Annual Financial Statements and Management
Discussion and Analysis. In summary, a transformation of the
concessions to the new Polish concession laws ("Transformation
Process") is required by the Polish government as a result of
the implementation of amendments to Poland's geological and mining
laws. An application for the Transformation Process was submitted
to the Polish government in December, 2016 but is not yet
complete. The licenses were originally set to expire in April and
August of 2018 but, as the Transformation Process had
already commenced, they have been effectively in suspension
pending a decision by the Polish government on the Transformation
Process. The timing for completing the Transformation Process has
been severely impacted by the war in Ukraine, travel and work restrictions imposed
to combat the Covid-19 pandemic, as well as by the Company's prior
lack of financial resources. Completing the Transformation Process
involves negotiations with the Polish Government to finalise: (i)
the work programs to be conducted, and (ii) the value of the
concession fees and guarantees that will be committed to the Polish
government.
An independent evaluation of the reserve and resources of the
Lachowice natural gas development project were described in
Horizon's press release dated December 5,
2022.
Horizon will also continue its business development activities
to acquire and develop previously discovered gas and oil resources
in the proven natural gas and oil basins located onshore
Europe.
The Company has until March 31 to
complete the second tranche of its previously announced private
placement and will disclose once completed.
The TSX Venture Exchange Inc. has in no way passed upon
the merits of the proposed transaction and has neither approved nor
disapproved the contents of this news release.
Certain information in this press release may contain
forward-looking statements. This information is based on current
expectations that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might
differ materially from results suggested in any forward-looking
statements. The Company assumes no obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those reflected in the forward
looking-statements unless and until required by securities laws
applicable to the Company. Additional information identifying risks
and uncertainties is contained in the Company's filings with the
Canadian securities regulators, which filings are available at
www.sedar.com.
Forward-Looking
Statements
This news release contains "forward-looking information" within
the meaning of applicable securities laws relating to the proposal
to complete the Transaction and associated transactions, including
statements regarding the terms and conditions of the Transformation
Process, and the future opportunities of the Company. Although
Horizon believes in light of the experience of its officers and
directors, current conditions and expected future developments and
other factors that have been considered appropriate that the
expectations reflected in this forward-looking information are
reasonable, undue reliance should not be placed on them because
Horizon can give no assurance that they will prove to be correct.
Readers are cautioned to not place undue reliance on
forward-looking information. Actual results and developments may
differ materially from those contemplated by these statements.
The TSXV has in no way passed upon the merits of the
proposed transaction and has neither approved nor disapproved the
contents of this press release.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this press
release.
SOURCE Horizon Petroleum Ltd.