MCF MCF Energy Ltd

VANCOUVER, BC, Sept. 16, 2024 /CNW/ - MCF Energy Ltd. (TSXV: MCF) (FRA: DC6) (OTCQX: MCFNF) ("MCF" or "MCF Energy" or the "Company") is pleased to announce an operational update on currently active projects. 

Austria – Welchau-1 Discovery Well

Subject to receipt of one remaining governmental approval, all plans are in place for a return to the Welchau wellsite to complete testing of the Welchau-1 discovery well which finished drilling in March with operations suspended due to seasonal restrictions in the Welchau-1 drilling and testing permit. The service rig is expected to be at the wellsite in early to mid-October to begin a multi-zone test of formations identified to be prospective based on well logs and MDT tests conducted in March. The Company expects to provide a number of updates during Q4 in coordination with the Welchau operator, ADX Energy. The Company has a 25% economic interest in the Welchau area, and ADX Energy has the remaining interest.

Germany

Lech

Site construction for the Kinsau-1A well began in early September with the building and completion of a perimeter fence surrounding the drill site.   The building contractor should begin full construction of the drill site in the first week of October with the process taking six to ten weeks.  Long lead items are purchased and will be delivered when the site is completed.  Well casing from the original Mobil Kinsau #1 well drilled in the 1980s will be exposed and a new well head will be attached ahead of the move in of the drill rig.  Drilling of the Kinsau-1A well is anticipated to begin in December.  MCF's 100% owned subsidiary Genexco GmbH owns 20% of the shares in Genexco Gas, the licensee of the Lech project.  Genexco is fully carried for the costs of the Kinsau-1A well up to Euro 5 million.  Solutions are in place to address the licence conditions, with Genexco Gas committed to meeting or exceeding all environmental requirements outlined in the permit from the Mining Authority. 

Lech East

MCF's 100% owned subsidiary Genexco GmbH is the licensee of the Lech East project with a 100% working interest in the almost 100 square km Lech East Concession which holds possible analogues to the Kinsau gas discovery.

The first well location has been selected and surface rental agreements have been signed with the surface owner.  Well planning has begun with geologic targets identified to encounter the same gas productive reservoirs found in the Kinsau #1 well in the nearby Lech concession. Environmental studies already have been commissioned for a tentative wellsite.

Geologic assessments of the 3D-seismic confirm a potential which can boost reserves for a joint development of Lech and Lech East. Gas export infrastructure will be tailored jointly with a regional gas utility located in Augsburg, Bavaria to service local industry and residential customers which suffer from high energy import cost.

Reudnitz

The Company previously announced the farmout option negotiated with Lime Petroleum Holdings AS ("Lime") for Reudnitz where MCF subsidiary Genexco holds a 100% interest in the Reudnitz licence area.  Funds received from Lime will fund the workover, flow testing and evaluation of RZ2 well in the Reudnitz exploration concession which includes installing a velocity string, acid job and well test.  Equipment is currently being mobilized for the test scheduled to begin on September 16, 2024.  The testing process is estimated to take several months to complete. 

Subsequent to the workover, Genexco intends to obtain a production licence for the agreed 'proven area' within Reudnitz.  Three previous gas wells have been drilled outlining the gas reservoir.  Lime has an option to assume a working interest ownership share in Reudnitz and the production licence of up to 80%.

If Lime exercises its option, Lime will carry all costs and expenses related to the pilot development of the reservoir limited to an amount of Euro 5.5 million.  If it exercises its option, Lime also has the right to assume operatorship of the Reudnitz production licence.

Czech Republic

NP-823 well

Slickline operation was completed on September 6, 2024, on MCF's NP-823 well in the Czech Republic.  Production equipment is currently being moved to the location. It is anticipated that all necessary production equipment will be on site within 30 days, after which inspection of the site will occur prior to commencing commercial production of gas.

LM-3 well

Front-end engineering of production facilities for the Company's LM-3 well in the Czech Republic is expected to be finished by the end of September.  Gas-to-power options are being evaluated to commercialise gas production from the well. 

James Hill, CEO and Director of MCF Energy, stated, "After months of engineering work, planning and some unanticipated delays, all our projects are moving ahead and on track to establish early cash flow and impactful discoveries on our concessions.   I am grateful for the continued support of our shareholders while the company strives to enhance value and meet our operational objectives.  The fourth quarter of 2024 will be busy and impactful for the Company, and we expect to be providing many updates in the coming months as these projects proceed."

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.

Cautionary Statements:

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Advisories:

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.

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.

Oil & Gas Advisories

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SOURCE MCF Energy Ltd.