Mr. Jim Hill reports

MCF ENERGY PROVIDES OPERATIONS UPDATE: WELCHAU-1 AUSTRIA PRODUCTION TESTING

MCF Energy Ltd. has provided an update on the continuing testing of the Welchau-1 well in Austria.

Background

The upper part of the Reifling formation has been perforated, and an initial flow test has been conducted. The initial flow test did not result in sufficient flow into the wellbore for reservoir fluids to enter the tubing string and allow the Reifling reservoir fluid composition to be determined or sampled.

Sampling of the inflow has recovered primarily workover fluids (brine) and traces of black solid particles of unknown composition, which may be affecting well flow. The composition of the solid particles is being analyzed at a specialist laboratory.

The well has been left shut in, and the workover rig has been demobilized until further sample analysis and well data become available from Welchau-1.

Forward program

Wellhead pressure recording equipment of suitable accuracy will be fitted to the wellhead to enable the recording of the potential pressure buildup due to well inflow. If sufficient inflow is observed, then further sampling will be undertaken, and the well will be swabbed using wire line to reduce hydrostatic pressure, which may induce further flow.

If hydrocarbons are recovered, it is intended that further testing of the shallowest Reifling formation will be resumed, most likely, after acidization of the reservoir to overcome wellbore damage and enhance productivity in the carbonate reservoir.

In parallel with the above-mentioned activities, samples recovered from the testing of the Steinalm formation will be analyzed to determine if hydrocarbons are present as well as to determine the composition and likely source of solid black particles which were also encountered during the Reifling formation flow test.

The results of the well pressure monitoring, sampling and well fluid analysis are expected to be available early in the new year, after which a decision on further stimulation or testing operations will be taken.

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.

We seek Safe Harbor.