Latest news with #gasdevelopment
News.com.au
6 days ago
- Business
- News.com.au
‘Already seven years late': Woodside's North West Shelf gas project given 40 more years by Labor
MST Financial Senior Energy Analyst Saul Kavonic claims Woodside's Energy North West Shelf gas project's extension is already 'seven years late'. Minister for Environment Murray Watt has approved a 40-year extension to Woodside's North West Shelf gas development in Western Australia. 'This approval was expected indeed, it was inevitable,' Mr Kavonic said. 'It was ultimately just delayed until after the election so that Labor didn't want to risk alienating any green-minded voters into the election. 'This really isn't a win for the economy or a win for the industry, because this is not an approval that should ever have been in jeopardy to begin with.'
The Guardian
24-05-2025
- Business
- The Guardian
Reliable energy or ‘carbon bomb'? What's at stake in the battle over Australia's North West Shelf
The new environment minister, Murray Watt, says he plans to decide on whether Australia's biggest-emitting gas development can extend its life until 2070 by the end of the month. What will he consider in making that decision – and what's at stake? The North West Shelf development is one of the world's largest liquified natural gas (LNG) projects. Since the 1980s, gas has been extracted from basins off the Pilbara coast in northern Western Australia and processed at the Karratha gas plant on the Burrup peninsula. The peninsula and nearby Dampier archipelago are the site of extraordinary Indigenous history. Known as Murujuga, the area is home to an estimated 1 million petroglyphs – rock carvings and art – some of which are believed to be nearly 50,000 years old. It has been described as 'the largest and oldest outdoor art gallery on Earth' and including the oldest known depictions of a human face. Woodside Energy, which operates the gas plant, says the development has led to hundreds of millions of dollars' investment in the local economy and is a 'nationally significant asset' that pioneered Australia's multibillion-dollar LNG industry. It has an annual export capacity of 14.3m tonnes. The company has approval to continue operating the plant until 2030, but is seeking an extension that could keep it running until 2070. The WA government approved the extension in December. The final decision now sits with Watt. He says he will deliver his verdict by 31 May. Sign up to get climate and environment editor Adam Morton's Clear Air column as a free newsletter Woodside says it would 'secure reliable energy for decades to come', particularly for customers in Japan and South Korea that lack their own energy resources and need Australian gas to keep their economies running. Critics – including scientists, Indigenous leaders, environment organisations, politicians and a record 759 people who appealed against its state-level approval – say the case for extending the development's life fails on multiple fronts. They say there is credible evidence that pollutants from the processing plant are damaging the rock art, and state and federal governments have failed to act despite backing a world heritage bid for Murujuga. And they say processing gas at Karratha until 2070 would be a 'carbon bomb', leading to billions of tonnes of greenhouse gas emissions. Climate pollution is released during production, shipping and especially when the gas is burned for energy. Gas supporters say it is a cleaner energy source than coal and expanding its use lowers emissions. But a US study last year found the total emissions from LNG – from extraction to burning overseas – are in some cases greater than coal. No evidence has been produced by the federal or state governments or the gas industry demonstrating the extent to which Australian gas is displacing coal. Government officials have acknowledged in at least some cases it is likely to be displacing zero-emissions energy sources – solar, wind and nuclear. Critics also point out that allowing a major fossil fuel processing facility to operate until 2070 is at odds with the goal – shared by Australia and its major trading partners – to reach net zero emissions by mid-century. While some emissions would continue and be offset in a net zero world, fossil fuel use will need to shrink to as close to zero as possible to get there. There is also a question over whether Japanese companies are buying more LNG from Australia than they need for domestic use. A recent briefing note from the Institute of Energy Economics and Financial Analysis suggests last year they onsold a large amount of gas – roughly as much as was used across the Australian east coast – to third countries at a profit. The gas industry and its political supporters counter that Japan has made clear it needs a reliable gas supply, and that this is mostly met through long-term contracts. They say if Australia stops supplying gas, other countries will just take its place, and it will do nothing to cut global emissions. Critics call this the 'drug dealer's defence', and cite experts' warnings that no new oil and gas basins should be opened if countries are serious about keeping the goals of the landmark 2015 Paris climate agreement within reach. Campaigners say the government should instead accelerate development of new green export industries – the kind promised under its 'future made in Australia' legislation – and use diplomatic leverage to encourage client countries to rapidly cut reliance on fossil fuels and back more zero emissions energy. No, mostly not. Woodside is seeking approval under the Environment Protection and Biodiversity Conservation (EPBC) Act, which does not include a 'climate trigger'. That is, the national environment law does not include climate impact as grounds for a development application to be refused. The government could have changed this, but rebuffed calls from the Greens and independents. It says industrial climate pollution is regulated under a different policy, the safeguard mechanism. But, unlike the EPBC Act, that safeguard mechanism does not clearly give the minister the power to refuse a development outright. Climate's absence from the EPBC Act means Watt is likely to be basing his decision on the local impact of the North West Shelf plant only. Which means primarily on rock art. On this, the question is: who will the minister listen to? Peer-reviewed research gas found evidence that industrial pollution is 'actively degraded' petroglyphs. A list of Labor luminaries including the former federal leader Kim Beazley and former WA premiers Carmen Lawrence and Peter Dowding signed a letter last year calling for the extension to be rejected, in part because it was likely to have a 'profound and irreversible' impact on the Murujuga cultural landscape. Some indigenous custodians have spent years campaigning on the issue. Raelene Cooper, a Mardathoonera woman from Murujuga, in 2022 filed what is known as a section 10 application under the Aboriginal and Torres Strait Islander Heritage Protection Act requesting that the federal government investigate whether the area around the gas plant warranted special heritage protection. Watt's predecessor, Tanya Plibersek, agreed, appointed an independent reporter to investigate and received the resulting report nearly two years ago, but didn't act on it. On Thursday, Cooper launched legal action in the federal court to try to force Watt to respond to the cultural heritage report before he decides on the North West Shelf extension. It was unclear late on Friday if that application would affect Watt's plans to make a decision in the next week. Cooper's message contrasted with a statement on Friday afternoon by the WA government and the Murujuga Aboriginal Corporation, made up of members from five traditional language groups. They said an 800-page rock art monitoring report had found there had been damage to some rock, probably due to inflated industrial emissions in the 1970s, but levels of key pollutants such as nitrogen dioxide and sulphur dioxide had declined since 2014. They said there was no evidence that acid rain was affecting the art. Speaking to the ABC, Benjamin Smith, a professor of archeology and world rock art expert at the University of Western Australia, suggested this made little sense as there was little industry in the region in the 1970s. He said pollution at Murujuga was now close to its peak and 'at very dangerous levels by international standards'. 'We shouldn't delude ourselves with the evidence presented here,' he said. 'There are absolutely definitive signs that the rock art is eroding.' This is not central to Watt's legal decision, but it is a significant question. One of the criticisms made of the North West Shelf extension proposal is that it assumes Woodside will have enough gas to process for decades ahead. At the moment, it doesn't. It plans to partly address this by developing the vast Browse basin, about 300km off the WA coast. Browse lies above Scott Reef, which is home to a coral reef ecosystem that has more than 1,500 species, many unique to the area and some at risk of extinction. The WA Environment Protection Authority (EPA) formed a preliminary view that the risks from developing the gas basin would be 'unacceptable'. The WA government later pushed through laws changing how the EPA operates. Woodside is still seeking state and federal approval of the development. Campaigners argue the North West Shelf extension and Browse basin development should be considered together, given one depends on the other. But they are considered separate developments under state and federal law. If Watt does approve the North West Shelf extension, an upcoming decision on developing Browse will loom even larger.
ABC News
18-05-2025
- Politics
- ABC News
NT government's closed recruitment for territory coordinator role faces criticism
The Northern Territory government has faced criticism over its move to hand a former gas executive "extraordinary powers" to green-light private development, without publicly recruiting for the "highly-paid" position. Last Thursday, Stuart Knowles was appointed as the first territory coordinator, gaining a four-year term after acting in the role since November. The government passed new laws to create the position in March, and it comes with sweeping powers to "consolidate regulatory processes" for projects of "economic significance". Mr Knowles, a former NT Inpex boss, now has the ability to issue "step-in notices" and take over some assessments from other approval bodies. He gains powers to override dozens of NT laws, including those regulating the environment, pastoral land, petroleum, heritage and water. Opposition Leader Selena Uibo said the "high standards expected of the public service" had not been applied in the government's appointment of Mr Knowles, claiming there was no open recruitment for the role. "The Labor opposition is struggling to find the process that has been used to appoint Mr Knowles in this highly-paid taxpayer position for four years," she said. "What vetting processes were afoot, what open recruitment process has the CLP government followed? "So far it looks like none." A government spokesperson said a selection panel undertook a "formal assessment process" before Mr Knowles was appointed territory coordinator on Thursday. In a statement, Mr Knowles said that process assessed his "private and public sector strategic project experience, and qualifications in management, auditing and corporate governance". The government declined to answer multiple ABC requests for information on how much Mr Knowles would get paid in the role, nor whether it considered other candidates. Labor's questioning in parliament last week also centred around media reports by the NT Independent that Mr Knowles was investigated by NT Animal Welfare for animal neglect 10 years ago. During the investigation, four dogs were seized and taken to a vet for treatment, with a warning issued to Mr Knowles. Mr Knowles said in a statement he took full responsibility for the "unintended" animal neglect. "I am deeply sorry for the distress caused to my dogs due to the tick infestation on my property a decade ago," he said. "I deeply regret my failure to prevent it." Mr Knowles said during the investigation, animal welfare officers attended his property three times in six weeks to assess the dogs' condition. "After confirming that remedial actions, including tick eradication treatments, were successful and the dogs were in good health, they concluded their investigation," he said. Independent MLA Justine Davis has also raised concerns about Mr Knowles's appointment, saying parliament members know little about how he was chosen for the role. "There are open questions about his fitness for the role, the integrity of the recruitment process that led to his appointment, and ongoing concerns about potential conflict of interest — actual or perceived — Mr Knowles may have given his prior work with Inpex," she said. Ms Davis said the role's selection criteria — which the new laws limit to "suitable qualifications or experience" relating to the territory coordinator's functions — were "totally inadequate". She said the legislative scrutiny committee, which she was part of, recommended the job criteria exclude government or judicial officials and people who had donated to a political party in the past. However that request was rejected, along with another recommendation that the territory coordinator's appointment should require the parliament's endorsement. "It remains difficult to understand why the CLP would object to basic integrity standards for powerful public service roles like the territory coordinator," Ms Davis said. Mr Knowles worked in the Department of Chief Minister and Cabinet prior to joining Inpex as a compliance approvals manager in 2014. He went on to become the gas giant's NT general manager, and later worked for a consulting firm before he took on the territory coordinator role. Chief Minister Lia Finocchiaro said Mr Knowles had "extensive" public and private sector experience and an "understanding of the Northern Territory's unique challenges and opportunities". Last week the government was also criticised for making a "captain's pick" appointment of Legal Aid NT's new director — which prompted a string of resignations from the organisation's board.
Zawya
08-05-2025
- Business
- Zawya
Energean Chief Executive Officer (CEO) Confirmed to Speak at Invest in African Energy (IAE) 2025 in Paris
Mathios Rigas, CEO of Energean, will speak at the upcoming Invest in African Energy (IAE) 2025 Forum in Paris, where he will bring critical insights into the future of gas development and investment in Africa. As the head of one of the Mediterranean's leading independent E&P companies, Rigas is uniquely positioned to discuss how African nations can accelerate gas monetization, meet rising domestic energy demand and attract private sector-led upstream investment. Energean's entry into Morocco marks a notable expansion of its operations in Africa and reflects the company's strategic focus on gas development across the continent. In April 2024, Energean farmed into the Lixus and Rissana offshore licenses and began drilling at the Anchois gas project in August. Although the discovery did not yield sufficient volumes to justify development, the move signals Energean's intent to replicate its gas-focused success in the Mediterranean and target gas-weighed assets. IAE 2025 ( is an exclusive forum designed to facilitate investment between African energy markets and global investors. Taking place May 13-14, 2025 in Paris, the event offers delegates two days of intensive engagement with industry experts, project developers, investors and policymakers. For more information, please visit To sponsor or participate as a delegate, please contact sales@ Following the announcement in December 2024 that Energean would target new acquisitions across Africa, along with the Balkans, the UK and the North Sea, the company is actively reshaping its portfolio around high-impact, development-ready assets. This strategic shift comes in the wake of the divestment of mature assets and signals a renewed focus on frontier and underdeveloped regions, where Energean can apply its proven development model. Africa is set to play a central role in this new chapter, offering both resource potential and strong demand fundamentals. With its technical capabilities, successful track record in bringing offshore gas projects online, and experience navigating complex regulatory environments, Energean is well-positioned to make a significant contribution to Africa's gas agenda. The company's approach aligns with the continent's energy transition priorities, offering cleaner-burning fuel sources that can support industrial growth, job creation and greater energy independence. IAE 2025 will serve as a critical platform for facilitating dialogue between Energean and key African stakeholders – including governments, regulators and investors – as the company deepens its presence on the continent. As Africa advances its gas agenda and seeks partners to support energy security and industrial development, IAE offers unmatched opportunities to share strategic insights, forge new partnerships and drive investment into high-impact, gas-focused projects. Distributed by APO Group on behalf of Energy Capital&Power.
Globe and Mail
08-05-2025
- Business
- Globe and Mail
HORIZON PETROLEUM PROVIDES EUROPEAN GAS MARKET SUMMARY AND A CONCESSION UPDATE ON ITS GAS ASSETS IN POLAND
CALGARY, AB , May 7, 2025 /CNW/ - Horizon Petroleum Ltd. (TSXV: HPL) (FRA: HPM) (Tradegate: HPM) ("Horizon" or the "Company") is pleased to provide a corporate update on its progress on executing its programs in the Bielsko-Biala and Cieszyn concessions. The Company has previously reported on its progress in its operations at the Lachowice gas development in the Bielsko-Biala concession where we have commenced operations on the initial development of the field. The field has assigned 2P net reserves of 34 BCF and 164 BCF of Net 2C Contingent resources with net asset values of NPV10 of US$84 million and US$431 million respectively, and 118 bcf of risked best estimate prospective resources (466 bcf unrisked) in undrilled area of the field. (Press release dated January 14,2025 ). APEX Global Engineering Inc. ("APEX") prepared the Reserves and Resource Report in accordance with NI 51-101 with an effective date of August 31, 2024 (issue date of December 4 , 2024). APEX assigned the Probable Reserves and Contingent and Prospective Resources to the Lachowice field. The reserves and resources assigned are subject to significant risks. Please refer to the Risks section at the end of this press release. European and Polish Gas Markets The development of our assets and the planned start of production will help meet the Polish Governments policies to increase domestic gas production. The energy demand environment in Europe and Poland is driven by the goal to reduce dependence on coal and to replace imported gas supplies from Russia for power generation. The EU has recently disclosed policies targeting the cessation of all gas imports from Russia by 2027. Much of the Russian gas is being replaced with LNG imported largely from the USA . The macro-gas market environment is expected to keep natural gas prices relatively high. Current natural gas prices in Poland are 163.5PLN/MWhr ( US$12.75 /mcf) with futures 2026 price of 168.6PLN/MWhr ( US$12.80 /mcf). Gas prices at the Dutch TTF hub are currently Euro 34.4 /MWhr ( US$11.50 /mcf). David Winter , CEO of the Company commented: "The initial review of the seismic and well data has confirmed our belief that the Cieszyn concession contains significant gas potential and we look forward to our work programs over the next year to delineate the prospects for our initial drilling targets that are close to wells that have successfully tested gas. The potential is supported by the shallower depths to the target reservoirs of less than 1,000m , and proximity to natural gas infrastructure that will allow us to bring wells into production relatively quickly. Lower cost of drilling, proximity to infrastructure reducing tie-in times in the strong Polish gas pricing environment of around US$12 /mcf will drive attractive economic returns to stakeholders". The Company is pleased to report on its initial review of the Cieszyn concession. Cieszyn Concession The Company has been conducting its initial work program of geological studies and seismic reprocessing which has shown the significant potential of the Cieszyn concession. The concession is covered by a wide grid of 2D seismic data of variable quality. The Company has reprocessed some key 2D lines which significantly improves the data quality and imaging of the target reservoir formations. The initial technical review has defined several priority areas of prospectivity for new 3D seismic acquisition programs. These are planned for 2026 and will be key to delineating the playfairways and prospects of the Miocene aged sandstone reservoirs to support future drilling programs. In addition to the 2D seismic data, Cieszyn has a total of 48 existing wells that have usable data, the majority of which were drilled during the Soviet era. (only 3 wells were drilled since 1991). The wells were typically shallow, targeting the Silesian Flysch of Miocene age and high-quality Miocene aged sandstone reservoirs, many reporting significant gas tests of over 1mmscf/d from well depths of 400m to 1,500m . Finally, there are 2 producing gas fields adjacent to the Cieszyn licence area. They were discovered in the 1940's and 1950's and government records indicate that they have produced close to 10bcf of gas to before they were suspended. The gas tested and produced is high quality, sweet (no H2S and minimal CO2) with methane contents typically higher than 90%. There are a number of "on trend" gas fields directly to the west in neighboring Czechia which supports our geological models. These seven nearby fields produce gas from sandstone reservoirs of Miocene age. These reservoirs are the same Miocene aged sandstone formations that have been encountered in the Cieszyn Licence area. Offtake of any produced gas is supported by the extensive pipeline infrastructure within the licence area and the considerable heavy industry in the region provides a ready direct market for any gas the Company can bring on stream. Horizon plans to drill its first new well by late 2026 or 2027 which is a requirement under its license agreement. However, the company is considering accelerating this plan through the drilling of "twin" wells beside existing wells that previously tested gas but were never put on permanent production. Well costs are expected to be in the range of US$1M -US$2MUS and associated economics are expected to be positive. ABOUT HORIZON Calgary -based Horizon is focused on the appraisal and development of conventional oil & natural gas resources onshore Europe . The Management and Board of Horizon consist of oil & natural gas professionals with significant international experience. Oil and Gas Advisories and Risks The reserve and resource estimates contained in this press release have been prepared in accordance with NI 51-101, is dated as of August 31, 2024 and prepared by APEX Global Engineering Inc. The Company held no reserves or reserves at year end but subsequently was granted the Bielsko-Biala and Cieszyn Concessions on November 19, 2024 . The reserve and resource estimates of natural gas and natural gas liquids reserves provided in this news release are estimates only, and there is no guarantee that the estimated reserves and/or resources will be recovered. Actual reserves and resources may eventually prove to be greater than, or less than, the estimates provided herein. It should not be assumed that the estimates of future net revenues presented herein represent the fair market value of the reserves and/or resources. There are numerous uncertainties inherent in estimating quantities of natural gas and natural gas liquids reserves and/or resources and the future cash flows attributed to such reserves and/or resources. These 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; * fluctuations in foreign exchange and interest rates; (xi)the number of competitors in the oil and gas industry with greater technical, financial and operations resources and staff; (xii) fluctuations in world prices and markets for oil and natural gas due to domestic, international, political, social, economic and environmental factors beyond the Company's control; (xiii) changes in government regulations affecting oil and natural gas operations; (xiv) potential liabilities for pollution or hazards against which the Company cannot adequately insure or which the Company may elect not to insure; (xv) contingencies affecting the classification as reserves versus resources which relate to the following issues as detailed in the COGE Handbook: ownership considerations, drilling requirements, testing requirements, regulatory considerations, infrastructure and market considerations, timing of production and development, and economic requirements; (xvi) the fact that there is no certainty that any portion of the prospective resources will be discovered and if discovered, there is no certainty that it will be commercially viable to produce any portion of the resources; and (xvii) other factors beyond the Company's control. Any reference in this press release to PIIP, contingent resources and prospective resources are not, and should not be confused with oil and natural gas reserves. Definitions Total Petroleum Initially in Place (" PIIP") refers to the total quantity of petroleum that is estimated to exist originally in naturally occurring accumulations. It includes the petroleum that exists in known accumulations prior to production and the estimated quantities yet to be discovered in the various leads and prospects identified by seismic and inferred by geology. A portion of the PIIP will be recoverable as determined by ultimate recovery factors and the estimated recoverable portion is further classified as Reserves, Contingent Resources or Prospective Resources. Discovered Petroleum Initially in Place (" Discovered PIIP" or " DPIIP") is the total quantity of Petroleum that is estimated as of the effective date of the Report to be contained in known accumulations prior to production. Multiple development projects may be applied to each known accumulation which may be separated vertically into different formations or by area in different pools; each project will recover a portion of the PIIP according to its unique reservoir characteristics. The projects will be subdivided into Commercial and Sub-Commercial at the effective date with the estimated recoverable petroleum quantities being classified as Reserves and Contingent Resources. Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be commercially recoverable from known accumulations, from a given date forward, based on: Company Gross Reserves are the Company's working interest (operating or non-operating) share before deducting royalties and without including any royalty interests of the Company. Resources are defined in the Canadian Oil and Gas Evaluation Handbook (COGEH) Volume 1, section 5 as follows: Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied projects are not yet considered mature enough for commercial development due to one or more contingencies. Contingent Resources may include, for example, projects for which there are currently no viable markets, or where commercial recovery is dependent on technology under development, or where evaluation of the accumulation is insufficient to clearly assess commerciality. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. It is also appropriate to classify as contingent resources, the estimated discovered recoverable quantities associated with a project in the early evaluation stage. Contingent Resources are further classified in accordance with the level of certainty associated with the estimates and may be sub classified based on project maturity and/or characterized by their economic status. Not all technically feasible development plans will be commercial. The commercial viability of a development project is dependent on the forecast of fiscal conditions over the life of the project. For Contingent Resources, the risk component relating to the likelihood that an accumulation will be commercially developed is referred to as the "chance of development." For contingent resources, the chance of commerciality is equal to the chance of development. Development Pending are contingencies that are being actively pursued; expect resolution in a reasonable time period; are directly influenced by the developer with both, internal approvals and commitment and development timing and; have a high chance of development (>80%). Development on Hold are contingencies with major non-technical contingencies identified; have a reasonable chance of development (>50%); have contingencies that are beyond the control of the developer including but not limited to: external approvals, economic factors, market access, political factors and social license. Development Unclarified are contingencies that have not been clearly defined; the project is currently under active evaluation; significant further appraisal may be required; progress is expected in a reasonable time period; chance of development is difficult to assess and could be a big range (20%-80%). Development Not Viable are contingencies that have been identified; the project was evaluated and considered not viable or significant further appraisal may be required; progress is not expected in a reasonable time period and; has a low chance of development (<<50%). Contingent Resources –Development Pending and –Development On Hold are considered economic, Contingent Resources –Development Unclarified have economics that are undetermined, and Contingent Resources –Development Not Viable are considered sub-economic. Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub classified based on project maturity. Not all exploration projects will result in discoveries. The chance that an exploration project will result in the discovery of petroleum is referred to as the "chance of discovery." Thus, for an undiscovered accumulation, the chance of commerciality is the product of two risk components — the chance of discovery and the chance of development. Estimates of resources always involve uncertainty, and the degree of uncertainty can vary widely between accumulations/projects and over the life of a project. Consequently, estimates of resources should generally be quoted as a range according to the level of confidence associated with the estimates. An understanding of statistical concepts and terminology is essential to understanding the confidence associated with resources definitions and categories. These concepts, which apply to all categories of resources, are outlined below. The range of uncertainty of estimated recoverable volumes may be represented by either deterministic scenarios or by a probability distribution. Resources should be provided as low, best, and high estimates as follows: Low Estimate and/or 1C in the case of Contingent Resources: This is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate. Best Estimate and/or 2C in the case of Contingent Resources: This is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate. High Estimate and/or 3C in the case of Contingent Resources: This is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate. This approach to describing uncertainty may be applied to reserves, contingent resources, and prospective resources. There may be significant risk that sub commercial and undiscovered accumulations will not achieve commercial production, however, it is useful to consider and identify the range of potentially recoverable quantities independently of such risk. The main contingencies identified in the Lachowice Reserves Report 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 below outlines the positive and negative factors which may be relevant to the Resource Report assumptions and estimates. Boe means a barrel of oil equivalent on the basis of 6 Mcf of natural gas to 1 barrel of oil equivalent. Mcfe means one thousand cubic feet of natural gas equivalent on the basis of 6 Mcfe : 1 barrel of oil. A boe conversion ratio of 6 Mcf : 1 Boe and 6 Mcfe : 1 bbl are based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the price of crude compared to the price of natural gas at various times can be significantly different from the energy equivalence of 6 Mcf : 1 boe or 6 Mcfe : 1 bbl, using Boe's and Mcfe's may be misleading as an indication of value. Abbreviations: Note Regarding Forward Looking Statements. This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to the Company's plans and other aspects of our anticipated future operations, management focus, strategies, financial, operating and production results, industry conditions, commodity prices and business opportunities. In addition, and without limiting the generality of the foregoing, this press release contains forward-looking information regarding anticipated netbacks, the timing of the remaining regulatory approvals for oil and gas operations in Poland , capital program and allocation thereof, future production, development and drilling plans, well economics, future cost reductions, potential growth, and the current operating plans with respect to the Company's right to assets in Poland as well as the source of funding the Company's capital spending. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. The forward-looking information is based on certain key expectations and assumptions made by Horizon's management, including expectations and assumptions noted previously in this press release under oil and gas advisories, and in addition with respect to prevailing commodity prices which may differ materially from the price forecasts used by Apex and differentials, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of future wells; reserve and resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labour and services; the impact of increasing competition; the ability to efficiently integrate assets and employees acquired through acquisitions, the ability to market natural gas successfully and Horizon's ability to access capital. Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Horizon can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. Horizon's actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that we will derive therefrom. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide securityholders with a more complete perspective on future operations and such information may not be appropriate for other purposes. Readers are cautioned that the foregoing lists of factors are not exhaustive. These forward-looking statements are made as of the date of this press release and we disclaim any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about Horizon's prospective results of operations, operating netbacks and components thereof, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this press release was made as of the date of this press release and was provided for the purpose of providing further information about Horizon's anticipated future business operations. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. Non-GAAP Measures This press release includes non-GAAP measures as further described herein. These non-GAAP measures do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS" or, alternatively, "GAAP") and therefore may not be comparable with the calculation of similar measures by other companies. 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.
