Mr. James Hill reports

MCF PROVIDES UPDATE ON TESTING 450 METERS OF HYDROCARBON SHOWS AT WELCHAU-1 AUSTRIA

MCF Energy Ltd.'s operations have commenced in preparation for production testing the Welchau-1 discovery well in the ADX-AT-II licence in Upper Austria. MCF holds a 25-per-cent economic interest in the Welchau investment area which contains the Welchau-1 discovery and other emerging prospects in the Northern Calcareous Alpes.

An environmental clearance has been received from the Department of Nature Protection of the state government of Upper Austria to undertake production testing operations on the Welchau-1 well. The environmental clearance was the last regulatory requirement to commence continuous (24-hour) production testing operations for a period commencing from Oct. 30, 2024, until March 31, 2025. On Monday and Tuesday, Nov. 4 and 5, 2024, workover rig W-102 from RED Drilling & Services was mobilized and rigged up at location together with all auxiliary and testing facility equipment.

Welchau production testing operations overview

The environmental clearance will allow for up to six months of continuous (24-hour) testing operations providing ADX with ample time to carry out an extensive testing program.

A testing program has been developed focusing on the following objectives:

• Determine reservoir fluid type present in key reservoirs;
• Determine the flow capacity in key reservoirs;
• Determine the reserves potential of the reservoirs.

The planned program is to test the 450 metres of hydrocarbon shows starting with the two major reservoirs, the deeper Steinalm and then the shallower Reifling formation. For each test, a number of flow periods and shut in periods are planned to determine the pressure response with downhole gauges. Well performance will be monitored to determine the potential reservoir damage from drilling and cementing of the well. In each test, the well may be acidized, if necessary, to optimize well performance. Data collection during testing will include flow measurement, surface and downhole pressure measurement, as well as both surface and downhole sampling. The expected testing program duration for the Steinalm formation is between six to 10 weeks.

Economic participation in the Welchau investment area

MCF has executed an energy investment agreement with ADX to finance 50 per cent of Welchau-1 well costs up to a well cost cap of 5.1 million euros to earn a 25-per-cent 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 financing and earning obligations to ADX and it holds MCF's 25-per-cent economic interest in the Welchau investment area with MCF obliged to pay 25 per cent of continuing well costs.

James Hill, chief executive officer and director of MCF Energy, stated: "I am very excited to begin testing on the Welchau-1 well in Austria. A successful test could provide significant resources to Austria and increase the countries energy security. Drill site construction is under way at our Kinsau 1A site in Germany with drilling scheduled to begin in Q1 of 2025. 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.

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