Mr. James Hill reports

MCF ENERGY AND GENEXCO GAS GRANTED PERMIT FOR DRILLING OF THE KINSAU 1A WELL IN GERMANY; PARTNER-FUNDED DRILLING TO BEGIN IN SEPTEMBER 2024

MCF Energy Ltd. has received a final permit from the Southern Bavaria Mining Authority for exploratory drilling of the Kinsau 1A well, located in the Lech concession. Drilling and completion are scheduled to start in September, 2024.

The Kinsau 1A drilling project is a re-entry and redrill of the Kinsau No. 1 discovery well, originally drilled in 1983 by Mobil, which produced impressive test results of over 24 million cubic feet of gas and condensate per day. Mobil drilled the Kinsau No. 1 well to a depth of 3,940 metres, where it encountered basement rocks. Gas and condensate indications were found within the Jurassic Purbeck formation at 3,179 metres. The well was completed by stimulating it with acid and tested over a 22.5-metre perforated interval. The entire well test took 3.5 months to complete. A variable rate test was conducted on July 28 to July 29, with three flowing rates reported: 7,712,000 cubic feet per day at 2,973 psi; 14,832,000 cubic feet per day at 2,785 pounds per square inch; and 24,706,000 cubic feet per day at 1,871 pounds per square inch. The total test pressure dropped from 4,110 pounds per square inch to 4,090 pounds per square inch (283.4 to 282 bar). The test resulted in a recovery of 45.9 million cubic feet of gas and 1,510 barrels of condensate. These test results are not necessarily indicative of long-term performance or of ultimate recovery.

MCF Energy plans to leverage existing infrastructure to minimize costs and enhance efficiency of the Kinsau 1A well, using nearly 1,000 metres of existing steel and cemented casing from the original well to safeguard groundwater reservoirs.

The Kinsau 1A well will be drilled using the same RED Drilling rig that accomplished the successful drilling of the Welchau No. 1 well in Austria earlier this year. Well site construction is already under way, with a groundwater monitoring well already drilled. The long-lead items for the re-entry have been purchased. Natural gas has been produced in Bavaria since 1954, and the expertise of the authorities and experts in the gas industry is correspondingly high.

Through its German subsidiary, Genexco GmbH, MCF Energy has a 20-per-cent interest in the Lech concession (approximately six square kilometres) and is carried by the operator, Genexco Gas GmbH, for the costs of the upcoming Kinsau-1A well up to five million euros. Consequently, MCF does not anticipate requiring additional capital for the drilling and testing of this potential high-impact well. Several additional well locations on the Lech concession have been identified for potential development.

Lech East

MCF Energy holds a 100-per-cent interest in the Lech East concession (approximately 100 square kilometres), which is positioned to the north and east of the Lech concession and the Kinsau discovery well, and is fully surveyed with 3-D seismic.

James Hill, chief executive officer and director of MCF Energy, stated: "This permit is more than just promising; it's what we've been eagerly anticipating for the past year. We're in an advantageous position, with full partner funding for the drilling and testing of the Kinsau 1A well, along with many promising follow-up sites at both Lech and Lech East. We are thrilled and expect to resume drilling in September. I am grateful for the continued support of our shareholders while the company strives to enhance value and meet our operational objectives."

About MCF Energy Ltd.

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 and headquartered in Vancouver, B.C.

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