Mr. Jim Hill reports

MCF ENERGY ANNOUNCES AUSTRIA WELL TESTING UPDATE

MCF Energy Ltd. has provided an update on production testing at the Welchau-1 well in the ADX-AT-II licence in Upper Austria.

Following testing of the Steinalm formation, the Steinalm testing perforations have been isolated with a packer and a new test completion was run in the well to perforate and test the upper section of the 128-metre-thick Reifling formation. On Nov. 28, 2024, three intervals were perforated in the upper Reifling including (1) 1,324 metres to 1,340 metres measured depth (MD) (16 metres), (2) 1,346 metres to 1,351 metres (five metres) and (3) 1,358 metres to 1,382 metres (24 metres) MD.

Limited inflow was determined based on down hole fluid levels. The well was shut in over the weekend to allow time for the well to flow reservoir fluids into the tubing string. The fluid level in the well was observed on Dec. 3, 2024, indicating limited inflow (less than one cubic metre or approximately six barrels). Sampling of the well indicated only completion brine (not reservoir fluid) and fine solid particles of unknown origin (solid contaminants) were present in the well as shown in the figure as shown in the original release. The solid contaminants recovered had a petroliferous odour.

The well has been left shut in to determine if it can flow naturally, analyze the composition of well fluids recovered to date and potentially flow sufficient formation fluids (minimum flow volume) to enter the production tubing -- by filling the annular space from the perforations to the bottom of the tubing string (further well flow information).

The forward program for the Welchau-1 well will be determined once further well flow information is collected and assessed including whether to proceed with acidization of the reservoir which is common practice for overcoming well bore damage and enhancing productivity in carbonate reservoirs.

Economic participation in the Welchau investment area

MCF holds a 25-per-cent 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 financed 50 per cent of Welchau-1 well drilling costs 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. MCF has met its funding 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.

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.

We seek Safe Harbor.