Operations Update - Welchau-1 Production Testing Progress Report

Initial flows from first test interval yields a combination of drilling mud, formation water, gas and traces of oil from the unstimulated perforated interval at a liquid rate between 240 to 290 barrels per day.

VANCOUVER, BC, Nov. 20, 2024 /CNW/ - MCF Energy Ltd. (TSXV: MCF) (FRA: DC6) (OTCQX: MCFNF) ("MCF", "MCF Energy" or the "Company") is pleased to advise that operations work for the production testing is well underway at the Welchau-1 well in the ADX-AT-II licence in Upper Austria. MCF holds a 25% economic interest in the Welchau Investment Area which contains the Welchau-1 well and other emerging prospects in the Northern Calcareous Alps. ADX Energy Ltd. is the operator of the Welchau-1 well.

A well completion has been run in the well (tubing, packer and perforating system) and two intervals have been perforated underbalance using high density casing guns in the Steinalm Formation. The test intervals are 1452.5 metres to 1463.5 metres Measured Depth (MD) and 1474.5 metres to 1480 metres MD.

A well clean up flow has been conducted where gas was observed at surface followed by unassisted sustained stable rate of liquid flow of drilling mud, likely contaminated formation water and some oil traces. Well productivity observed from the unstimulated perforated interval is between 240 to 290 barrels per day of fluids. The well is being flowed during daylight hours where fluid sampling is ongoing and a down hole production logging tool (PLT) is being run in the well to diagnose flow contributions from perforations, pressures and fluid gradients.

Surface sampling and analysis of fluids recovered as well as PLT results analysis is ongoing to determine the type and flow of liquids produced into the well at this level. This analysis is required to understand fracture system flow behaviour, recovery of mud losses from drilling, source of formation water and hydrocarbon charge in the complex Steinalm Formation fracture system.

The perforated intervals are over fractured zones in the Steinalm Formation where hydrocarbon shows were observed during drilling and above where oil was recovered from a down hole modular formation dynamic tester (MDT), intervals where hydrocarbon influxes were observed while drilling as well as the interval where a formation core was recovered with fluorescence (refer Figure 1). The Figure shows permeable events intersected in the well bore with gas influxes and hydrocarbon shows encountered during drilling that correlate to these permeable events (e.g. fractures).

Welchau-1 operator ADX Energy Ltd. says, "The lack of hydrocarbons encountered as the main fluid in the well at this interval is disappointing and contrasts with hydrocarbon shows recorded while drilling the well and oil samples recovered from the MDT sampler. More analysis is required to understand what appears to be a productive, extensive, well-connected and permeable fracture system in this part of the Steinalm Formation that is now interpreted to be drawing formation water into the well."

The current forward plan is to complete the acquisition of the PLT data followed by the testing of the shallower Reifling Formation while evaluating the results to date from the Steinalm Formation test interval.

Economic Participation in the Welchau Investment Area

MCF has executed an Energy Investment Agreement with ADX to fund 50% of Welchau-1 well costs up to a well cost cap of EUR 5.1 million to earn a 25% economic interest in the Welchau Investment Area, which is part of ADX's ADX-AT-II licence in Upper Austria. The Welchau Investment Area contains the Welchau discovery well and other emerging oil and gas prospects. MCF has met its funding and earning obligations to ADX and it holds MCF's 25% economic interest in the Welchau Investment Area with MCF obliged to pay 25% of ongoing well costs.

About MCF Energy

MCF Energy was established in 2022 by leading energy executives to strengthen Europe's energy security through responsible exploration and development of natural gas resources within the region. The Company has secured interests in several significant natural gas exploration projects in Austria and Germany with additional concession applications pending. MCF Energy is also evaluating additional opportunities throughout Europe. The Company's leaders have extensive experience in the European energy sector and are working to develop a cleaner, cheaper, and more secure natural gas industry as a transition to renewable energy sources. MCF Energy is a publicly traded company (TSX.V: MCF; FRA: DC6; OTCQX: MCFNF) and headquartered in Vancouver, British Columbia. For further information, please visit: www.mcfenergy.com. 

Additional information on the Company is available at www.sedarplus.ca under the Company's profile.

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Forward-Looking Information

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 the anticipated timing of development plans and resource potential with respect to the Company's right to assets in Austria. 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 MCF Energy's management, including expectations and assumptions noted subsequently 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 applicable at the time of the respective Resource Audits conducted by GCA, and differentials, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of future wells; 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 MCF'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 MCF Energy 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. MCF Energy'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.

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Oil & Gas Advisories

SOURCE MCF Energy Ltd.