(1) Welchau-1 First Test Interval
(2) Kinsau-1A Wellsite Preparation
VANCOUVER, BC, Nov. 27, 2024 /CNW/ - MCF Energy Ltd. (TSXV: MCF) (FRA: DC6) (OTCQX: MCFNF) ("MCF", "MCF Energy" or the "Company") provides an update on (1) production testing at the Welchau-1 well in the ADX-AT-II licence in Upper Austria, and (2) wellsite preparation for the Kinsau-1A well at Lech, Germany.
(1) First Test of Steinalm Formation, Welchau-1, Austria
MCF Energy and its Welchau Investment Area partner and licence operator ADX Energy Ltd have completed the first flow test of the Steinalm formation in the Welchau-1 discovery well, located in the ADX-AT-II licence in Upper Austria. MCF holds an 25% economic interest in the Welchau Investment Area which contains the Welchau-1 discovery and other emerging prospects in the Northern Calcareous Alps.
On the November 20, 2024 MCF announced the initial results of the first test of the Steinalm formation where gas was observed at surface followed by an unassisted stable rate of liquid flow including drilling mud, likely contaminated formation water and some oil traces. The observed liquid rate was between 240 to 290 barrels per day from unstimulated perforated intervals.
The Steinalm formation was tested across two perforation intervals between 1452.5 metres to 1463.5 metres of measured depth (MD) "Upper" and 1474.5 metres to 1480 metres MD "Lower". The perforated intervals are over fractured zones where hydrocarbon shows were observed during drilling of the well and above where oil was recovered from a down hole modular formation dynamic tester (MDT).
Further Analysis of the first Steinalm Formation Test
A production logging tool (PLT) was run in the well to determine the source of the produced mud and formation water. The PLT results indicate that most of the fluid produced during the first Steinalm test came from the bottom of Lower perforations with little or no contribution from the Upper interval approximately 27 metres above. Fluid entry to the well bore appears to be at a single point at approximately 1478 metres MD which was flowing preferentially to the Upper perforations. The dominant flow is interpreted to be from a fracture system accessing an oil/water contact lower in the structure. Based on the PLT results the first Steinalm test is not considered diagnostic of the presence or absence of hydrocarbons. A retest of the Upper Steinalm perforations can be conducted at a future time after isolating the Lower perforations.
Figure 1 below shows the Steinalm Test 1 completion diagram and a schematic showing the dominant contribution of flow from the bottom of the Lower perforations as interpreted from the PLT results.
Planned Reifling Formation Testing Program
The Steinalm test completion has been retrieved and the Steinalm Upper and Lower perforations have been isolated with a packer below the Reifling test interval. The plan is to move up the hole, higher into the interpreted hydrocarbon column and undertake a test at the upper most part of the 128-metre thick Reifling formation.
A new test completion will be run in the well and the Reifling will be perforated across three intervals. The three intervals to be tested contemporaneously will include a 16-metre interval from 1324 metres to 1340 metres MD, a 5-metre interval from 1346 metres to 1351 metres and a 24-metre interval from 1358 metres to 1382 metres MD. (refer Figure 2)
The commencement of testing of the Reifling formation is expected to occur by the end of next week.
The future testing program after the above-mentioned Reifling test will be determined based on further analysis of Steinalm and Reifling test results.
Economic Participation in the Welchau Investment Area
MCF holds a 25% economic interest in the Welchau Investment Area which contains the Welchau-1 well and other emerging prospects in the Northern Calcareous Alps. Under the Energy Investment Agreement between MCF and ADX Energy, MCF funded 50% of Welchau-1 well drilling costs to earn a 25% economic interest in the Welchau Investment Area, which is part of ADX's ADX-AT-II licence in Upper Austria. MCF has met its funding and earning obligations to ADX and it holds MCF's 25% economic interest in the Welchau Investment Area with MCF obliged to pay 25% of ongoing well costs.
(2) Kinsau-1A Wellsite Preparation, Lech, Germany
Construction of the well site for the Kinsau 1A re-entry was started in October and continues to be on schedule with a rig ready completion date at the end of December 2024. The pad has been cleared of trees and levelled. The original Kinsau-1 well stub has been found and a new well head installed. The concrete pad has been finished and final construction continues. See Figure 3.
Mobil drilled the original Kinsau-1 well in 1983 and made a gas and condensate discovery which was not economic at that time and the well was suspended and later abandoned. This well had a final stable flow rate of almost 25 MMcf per day of gas and condensate. The new well will be a re-entry of this well with a target within 100 metres of the productive zone.
James Hill, CEO and Director of MCF Energy, stated, "We continue to move forward with the testing program at Welchau-1 in Austria. I am disappointed with the unclear results of our first test in the Steinalm formation, but I remain optimistic that upcoming perforation and testing of the uphole Reifling formation of this discovery well will establish the presence of significant resources of hydrocarbons. There is good progress in Germany with the construction of the Kinsau-1A drill site, which continues to be on schedule with the well expected to spud in Q1 of 2025. We will be providing more updates in the coming weeks and 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.
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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.
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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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