Flow testing of 450 metres of hydrocarbon shows is expected to commence in approximately one week
VANCOUVER, BC, Nov. 13, 2024 /CNW/ - MCF Energy Ltd. (TSXV: MCF) (FRA: DC6) (OTCQX: MCFNF) ("MCF", "MCF Energy" or the "Company") is pleased to advise that preparations for flow testing the Welchau-1 well, located in the ADX-AT-II licence in Upper Austria, are progressing as planned.
Since mobilization of the RED Drilling & Services W-102 workover rig (Workover Rig), together with ancillary equipment on the 4th and 5th of November 2024, the Workover Rig has been set up on the Welchau-1 well and surface testing equipment as well as materials have been mobilized to the well site. See Figures 1 and 2. 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.
A well completion assembly has been run in the well (tubing, packer and perforating system) and current operations include ongoing well completion work in preparation for flow testing as well. Flow testing facilities are being installed and rigged up, which includes a test separator, the necessary pipework and production storage tanks.
Flow testing of the Steinalm formation will commence in approximately one week after well perforation as well as flow testing facilities rig up, pressure testing of facilities and function testing.
Testing Program
The Environmental Clearance is for continuous (24-hour) flow testing operations up to March 31, 2025. This allows provides the Company with ample time to carry out an extensive testing program. This detailed flow testing is key and typical method industry wide for determining reservoir porosities and permeabilities carbonates reservoirs which are often highly dependent on fractures.
A testing program has been developed focussing on the following objectives:
- Determine reservoir fluid type present in key reservoirs;
- Determine the flow capacity in key reservoirs; and
- Determine the reserves potential of the reservoirs.
The planned program includes the testing of the two major reservoirs of a total of four, starting with the deeper Steinalm formation 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 down hole 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 stimulated, if necessary, to enhance well performance. Data collection during testing will include flow measurement, surface and down hole pressure measurement as well as both surface and down hole sampling. The expected testing program duration for the Steinalm Formation alone is between 6 to 10 weeks.
If good flow performance is achieved, the Steinalm test may be extended to obtain longer term flow data. The work over rig used for the Welchau-1 test program was previously utilised at ADX' Vienna Basin Fields and then for the completion of the successful oil Anshof-2A oil appraisal well. Together with other synergies for equipment and personnel, continued access to the work over rig gives the Company the operational flexibility to vary the program without a significant increase in costs.
Background
The Welchau-1 well encountered hydrocarbon shows over a 450-metre interval intersecting three primary carbonate reservoirs that are considered promising for testing and ongoing appraisal. The well was suspended for future evaluation on March 28, 2024 after running and cementing 7-inch casing. Operations were suspended to comply with the conditions of environmental permits limiting drilling and testing operations to the Austrian winter months from October 1, 2023 to March 31, 2024.
Data recovered from the well during the drilling and evaluation phase included hydrocarbon shows, wellbore inflows, drilling mud losses, formation cuttings, petrophysical borehole log data, formation fluid sampling and formation coring. This data has been used to assess the potential of the Welchau discovery and design the planned test program.
On September 26, 2024, the Company announced that the hydrocarbons discovered at Welchau are likely to be a high gravity (43.6° API) light oil with associated gas rather than a liquids-rich gas discovery as it was predicted prior to drilling.
Other Exploration Potential Near Welchau-1
MCF Energy notes that there is exploration potential at the nearby and further north Rossberg lead, as well as the deeper potential at Welchau in reservoirs below the 7" casing at the well's total depth (TD) (1733 metres) that have yet to be drilled. Figure 3 below shows a corresponding geological cross section.
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 Energy Ltds 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 a 25% economic interest in the Welchau Investment Area with MCF obliged to pay 25% of ongoing well costs.
James Hill, CEO and Director of MCF Energy, stated, "We continue to move forward with the testing program at Welchau in Austria. I am very optimistic that this discovery could provide significant resources to Austria and increase the countries energy security. 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
Abbreviations: |
|
|
|
Bcf | billion cubic feet |
Bcfe | billion cubic feet of natural gas equivalent |
Bbl | barrels |
Boe | barrels of oil equivalent |
M | thousand |
MM | million |
MMbbls | million barrels of oil |
MMBOE | million barrels of oil equivalent |
MMBC | million barrels of condensate |
MMcf | million cubic feet of natural gas |
Mcfe | thousand cubic feet of natural gas equivalent |
MMcfe/d | million cubic feet equivalent per day |
Scf | standard cubic feet |
Tcf | trillion cubic feet |
Km2 | square kilometres |
€ | Euros |
SOURCE MCF Energy Ltd.
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For further information: Investor Relations, Jim Hill, CEO, Tel : (604) 609-6110, Email : gkeep@fiorecorporation.com; Public Relations: Sarah Mawji, Email: sarah@venturestrategies.com, Venture Strategies