Mr. James Hill reports

MCF ENERGY PROVIDES AN OPERATIONAL UPDATE FOR AUSTRIA, GERMANY AND CZECH REPUBLIC

MCF Energy Ltd. has provided 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 the 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 multizone 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 co-ordination with the Welchau operator, ADX Energy. The company has a 25-per-cent 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 10 weeks. Long-lead items are purchased and will be delivered when the site is completed. Well casing from the original Mobil Kinsau No. 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-per-cent-owned subsidiary, Genexco GmbH, owns 20 per cent 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 five million euros. 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-per-cent-owned subsidiary, Genexco, is the licensee of the Lech East project with a 100-per-cent working interest in the almost-100-square-kilometre 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 No. 1 well in the nearby Lech concession. Environmental studies already have been commissioned for a tentative wellsite.

Geologic assessments of the 3-D seismic confirm a potential that 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 that suffer from high energy import cost.

Reudnitz

The company previously announced the farmout option negotiated with Lime Petroleum Holdings AS for Reudnitz, where MCF subsidiary, Genexco, holds a 100-per-cent interest in the Reudnitz licence area. Funds received from Lime will finance 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 Sept. 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 per cent.

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 5.5 million euros. 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 Sept. 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 commercialize gas production from the well.

James Hill, chief executive officer 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 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 is headquartered in Vancouver, B.C.

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