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CALGARY, AB, Jan. 2, 2024
/CNW/ - Horizon Petroleum Ltd. (NEX: HPL.H) (TSXV: HPL)
("Horizon" or the "Company") intends to complete a
non-brokered private placement (the "Offering") of up to
10,000,000 units ("Units") in the capital of Horizon at a
price of $0.05 per Unit for gross
proceeds of up to $500,000, subject to approval from the TSX-V.
Each Unit will consist of one common share and one common share
purchase warrant ("Warrant") in the capital of the Company.
Each Warrant will entitle the holder to purchase one Common Share
at a price of $0.075 for a period of
twelve (12) months from the date of issuance.
In connection with the Offering, certain insiders are expected
to purchase Units in the Offering. Each of the insiders is a
related party of Horizon, and as a result, the Offering will be a
related party transaction for purposes of Multilateral Instrument
61-101 – Protection of Minority Shareholders in Special
Transactions ("MI 61-101").
The Company intends to rely on exemptions from the formal
valuation and minority approval requirements of sections 5.5(a)
and 5.7(1)(a) of MI 61-101 in respect of such insider
participation, based on a determination that fair market value of
the participation in the Offering by insiders will not exceed 25%
of the market capitalization of Horizon, as determined in
accordance with MI 61-101.
In connection with the Offering, Horizon may pay finder's fees
of up to 7% cash and up to 7% convertible securities, or a
combination of both, as permitted by the policies of the
TSX-V.
The proposed use of proceeds of the Offering will be for initial
costs to complete the Poland Transformation Process and for working
capital purposes.
Corporate Update
As previously disclosed by Press Release dated August 24, 2023 Horizon submitted the required
documentation to complete the Transformation Process in
Poland. The submission was made
through the Company's two wholly owned subsidiary companies in
Poland and were submitted for the
Ministry's review, feedback and if satisfactory, approval.
The Bielska Biala Concession contains the Lachowice gas
discovery and development area.
The Transformation Process is fully described in the Annual
Financial Statements and Management Discussion and Analysis but 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. The
Transformation Process had been initiated by Horizon's predecessor
company in Poland, San Leon Energy
and had been stalled during the COVID pandemic.
The Ministry of the Environment in Poland has completed its initial review of the
documentation and has requested additional information. The Company
is providing the additional information to the Ministry and
continues to expect the Transformation Process to be completed in
Q1 2024. Although the Company has no reason to believe otherwise,
there is no assurance the Transformation Process will be successful
or that the conditions imposed on the Company will be
attainable.
The Company continues to evaluate a number of natural gas
production and development M&A opportunities in Europe and nearby regions with a goal to
establish a production and cash flow base to provide funding for
development activities. We will update shareholders in due
course.
About Horizon Petroleum
Ltd.
Calgary-based Horizon is
focused on the appraisal and development of natural gas reserves
and clean energy sources to increase energy independence and
security in Europe. The Management
and Board of Horizon consist of oil & gas, business and finance
professionals with significant international experience.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This press release contains "forward-looking statements" or
"forward-looking information" (collectively referred to herein as
"forward-looking statements") within the meaning of applicable
securities legislation. Such forward-looking statements include,
without limitation, forecasts, estimates, expectations and
objectives for future operations and the Transformaion Processthat
are subject to a number of assumptions, risks and uncertainties,
many of which are beyond the control of Horizon. Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects",
"plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or
conditions "will", "would", "may", "could" or "should" occur or be
achieved. This press release contains forward-looking statements
pertaining to, among other things the achievement of a successful
outcome with respect to the Transformation Process, and the
furtherance of Horizon's European acquisition and development
strategy.
Forward-looking information is based on current expectations,
estimates and projections that involve a number of risks, which
could cause actual results to vary and in some instances to differ
materially from those anticipated by Horizon and described in the
forward-looking information contained in this press
release.
Although Horizon believes that the material factors,
expectations and assumptions expressed in such forward-looking
statements are reasonable based on information available to it on
the date such statements were made, no assurances can be given as
to future results, levels of activity and achievements and such
statements are not guarantees of future performance.
Neither the TSX-V 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.