Horizon Petroleum Ltd. — Audit Report / Information 2020

Sep 21, 2021

HORIZON PETROLEUM LTD. (the "Company") Form 51-101F1

Statement of Reserves Data and Other Oil and Gas Information

PART 1 DATE OF STATEMENT

Item 1.1 Relevant Dates

This statement of reserves data and other oil and gas information is dated December 31, 2020

The effective date is August 31, 2020.

The preparation date is December 31, 2020.

PART 2 DISCLOSURE OF RESERVES DATA

As at August 31, 2020, the Company had no reserves.

PART 3 PRICING ASSUMPTIONS

Not applicable.

PART 4 RECONCILIATION OF CHANGES IN RESERVES

The Company has not had any reserves for the last three fiscal years and as such there is no reconciliation of changes in reserves to be presented.

PART 5 ADDITIONAL INFORMATION RELATING TO RESERVES DATA

None – Not included.

PART 6 OTHER OIL AND GAS INFORMATION

Item 6.1 Oil and Gas Properties and Wells

As of August 31, 2020, the Company had no producing oil or gas wells and the following nonproducing oil or gas wells on these properties

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Item 6.2 Properties With No Attributed Reserves

The exploration rights under the Ledeuix Permit were originally granted for a 5 year term beginning on August 8, 2008 and ending on August 8, 2013 and were extended for an additional five year term. The Ledeuix Permit expired on August 8, 2018.

Due to the permit being expired the Company did not own any properties as at August 31, 2020. The Company had applied for a three-year extension to the Ledeuix Permit which was declined by the French Government on February 12, 2020.

Item 6.2.1 Significant Factors or Uncertainties Relevant to Properties with No Attributed Reserves

At August 31, 2019 the Company had a $959,988 well abandonment obligation on the Ger permit which has been written down to $0 in Aug 2020 . The well abandonment obligation is considered to have been retired as a result of the French Courts approval to close the French subsidiary, Petromanas France SA

Item 6.3 Forward Contracts

Currently, the Company has no forward contracts.

Item 6.5 Tax Horizon

The Company was not required to pay income taxes during the year ended August 31, 2020. The Company has no current plans to spend capital in France, and there is no expectation of revenue or earnings. As such, the Company cannot reasonably estimate when, or if, it will begin paying income taxes.

Item 6.6 Costs Incurred

The capital expenditures made by the Company through Petromanas Energy (France) SAS in France total $0.

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Item 6.7 Exploration and Development Activities

The Company participated in no exploratory or development wells during its 2020 financial year.

Item 6.8 Production Estimates

Since the Company has no oil and gas reserves, there have been no production estimates forecast at the effective date.

Item 6.9 Production History

The Company has no production history.

Advisories

Note Regarding Forward Looking Statements.

This report contains forward-looking statements and forward-looking information (collectively " forwardlooking 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, industry conditions and business opportunities. In addition, and without limiting the generality of the foregoing, this report contains forward-looking information regarding the extension of the Ledeuix licence and the current operating plans with respect to the Company's assets in France as well as estimates relating to well abandonment costs. 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 with respect to anticipated timing and the state of the exploration and production business. Although the Company believes that the expectations and assumptions on which such forwardlooking 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 forwardlooking 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 report 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 report 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.