VANCOUVER, BC, Oct. 23, 2023 /CNW/ – MCF Energy Ltd. (TSXV: MCF) (FRA: DC6) (OTCQX: MCFNF) (“MCF Energy” or the “Company”) over the past 12-months, has demonstrated unwavering commitment to establishing a robust portfolio of natural gas weighted exploration prospects. The Company’s strategic vision centers on harnessing the vast potential of European energy resources, contributing to regional energy security and sustainable economic growth.
Key Highlights and Operational Update:
- Aggregation Success: MCF Energy has achieved remarkable success in its European acquisition endeavours, potentially unlocking substantial natural gas focused resource across multiple prospects within its portfolio; most with accompanying and extensive 3D seismic surveys.
- Concession Grants: Immediately impactful concession grants obtained in Germany by Genexco GmbH (“Genexco”), a wholly-owned subsidiary of MCF Energy:
- The granting of the Lech East concession which covers almost 100 km2 offsetting the Lech concession where Genexco Gas GmbH will twin a 1983 gas and condensate discovery which flowed significant gas and condensate with its Kinsau 1A well described below.
- The granting of the Erlenwiese concession in the Rhein Graben which covers 86 km2 and has several identified prospects to be matured in 2024. All the 2D seismic surveys have been acquired and a 3D seismic survey is being reviewed for acquisition. The proprietary AI and machine learning process will be applied to reduce prospect risk.
- The application to German authorities to transfer the Velden – Teising licence to Genexco from Genexco Gas GmbH, a 20% owned affiliate of Genexco.
- Operational Update:
- Granting to ADX Energy Inc. (“ADX”) an extension from September 30th to December 31st 2023 to drill the Welchau prospect in Austria. Delay caused by the final environmental permit, is expected by the operator ADX, to be granted around October 31st.
- Filing for the Permit to Drill from the Bavarian Mining Authority for the Kinsau 1A re-drill of the Lech discovery well. Final Permit to Drill is expected to be granted in the fourth quarter of 2023.
- Granting of the permit to re-work and test the Reudnitz Z2 MCF Energy horizontal well in the Reudnitz Gas field, 100% owned by MCF Energy. The reworking and testing operations are scheduled to begin at the end of October 2023.
- Technological Advancements: The Company has invested in cutting-edge AI and machine learning tools enabling it to notably enhance its evaluation and interpretation efficiency. Extending well beyond traditional methodologies, MCF Energy will ensure this industry leading geological and geophysical analysis is applied to each of its prospects prior to the deployment of any material development capital.
- Resource Assessment:
Based on its rigorous geological and geophysical assessments MCF Energy has confirmed the presence of significant quantities of petroleum and natural gas, indicating the potential for extensive petroleum and natural gas resources. The resources assigned are subject to significant risks. Please refer to the Advisories and Definitions sections at the end of this press release.
Gaffney Cline Associates Ltd. (“GCA”) prepared a Resource Audit Report, for the Reudnitz Block, Germany, prepared in February, 2023:
Table 1: Reudnitz Discovery – Contingent Resources Estimate, for an effective date of December 31, 2022:
Note: |
1. Gas Contingent Resources (Methane) are the volumes after the extraction of non-hydrocarbon gases (mainly Nitrogen). |
Cautionary Note: There is uncertainty that it will be commercially viable to produce any portion of the resources. |
Table 2: Reudnitz Discovery – Prospective Resources Estimate, for an effective date of December 31, 2022:
Note: |
1. The volumes reported are “un-risked” in the sense that no adjustment has been made for the risk that no discovery will be made or that any discovery would not be developed |
2. Identification of Prospective Resources associated with a Prospect is not indicative of any certainty that the Prospect will be drilled, or will be drilled in a timely manner. |
3. Prospective Resources should not be aggregated with each other, or with Reserves or Contingent Resources, because there are different levels of risk involved. |
Cautionary Note: There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. |
Table 3: Reudnitz Discovery – Recoverable Helium Estimate Segment 1 (Discovered), for an effective date of December 31, 2022:
Note: |
1. Helium volumes have been calculated by applying the Helium concentration in the raw gas volumes measured from samples obtained during well tests. |
Cautionary Note: There is uncertainty that it will be commercially viable to produce any portion of the resources. |
Table 4: Reudnitz Discovery – Recoverable Helium Estimates Segments 2 & 3 (Undiscovered), for an effective date of December 31, 2022:
Note: |
1. Helium volumes have been calculated by applying the Helium concentration in the raw gas volumes, as above. |
Cautionary Note: There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. |
The Reudnitz Discovery production development is based on a phased development plan, ultimately utilizing cryogenic separation technology for the separation of produced raw gas volumes. In Phase 1, geological and geophysical studies and a reservoir update, which is currently in progress. Cryotec Anlagenbau GmbH (“Cryotec”) has completed the design stage of the Methane / Nitrogen separation system for gas well flows with Helium recovery. Project budget cost of the installation is expected to be approximately €4.2 MM (net price). Phase 2 includes the planning and acquisition of a 3D seismic survey, well planning, drilling and testing of an appraisal well and associated studies with an estimated cost (including contingency) of €9.2 MM. Re-work of the Reudnitz Z2 horizontal well is budgeted and should begin at the end of October, 2023.
GCA prepared a Resource Audit Report, for the Welchau Prospect, ADX-AT-II Concession, Austria prepared in December, 2022:
Table 5: Gross (100%) Prospective Resource Estimate for the entire prospect for an effective date of December 31, 2022:
Note: |
1. The Welchau Prospect extends outside of the ADX-AT-II Concession into open acreage, the On Block estimates are based on the estimate of the volume within the Concession area. |
2. Gross Prospective Resources are 100% of the volumes estimated to be recoverable from the Prospect in the event that a discovery is made and subsequently developed. |
3. The volumes reported here are “un-risked” in the sense that no adjustment has been made for the risk that no discovery will be made or that any discovery would not be developed. |
4. Identification of Prospective Resources associated with a Prospect is not indicative of any certainty that the Prospect will be drilled, or will be drilled in a timely manner. Cautionary Note: There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. |
The ADX-AT-II Concession was granted in April, 2022, and has a 16-year duration. The only commitment associated with the Concession is drilling the Welchau-1 well. Planning for the well is advanced with an AFE for the well issued and a drilling rig contractor identified.
The Welchau-1 well is scheduled to be drilled in December of 2024, and the gross dry hole cost of the well is estimated at €3.81 MM, Success case is estimated at €4.3 MM, in the approved AFE. The well location has been identified and a land access agreement reached with the Austrian Forestry Ministry. Pipeline access is estimated at 18km from the location with standard well completion technology utilized. Pipeline costs have not been estimated. First commercial production estimated in late calendar 2024 or early 2025.
- Regional Impact: These findings have the potential to transform the energy landscape in the European region, enhancing energy security and reducing dependence on imports.
- Strategic Partnerships: The Company continues to forge strategic partnerships with local and international entities, fostering collaboration and knowledge sharing in the pursuit of European energy development.
- Market Expansion: MCF Energy is actively expanding its market reach, working closely with regulatory bodies, governments, and industry stakeholders to develop mutually beneficial agreements and frameworks for the exploration of Europe’s natural resources.
- Sustainability Commitment: MCF Energy remains steadfast in its commitment to responsible and sustainable energy development, and an unwavering commitment to adhering to best practices in environmental stewardship and community engagement.
Mr. Jay Park, the Executive Chairman of MCF Energy, stated, “This operational update reflects our dedication to responsibly advancing Europe’s energy independence and security goals. We are proud of our team’s achievements and look forward to contributing to the energy security and prosperity of the region. Our vision is equally aligned with the global transition to cleaner energy sources, and we are committed to playing a pivotal role in this transition.”
MCF Energy invites all stakeholders, including shareholders, employees, and the general public, to stay updated on the Company’s progress and its role in Europe’s energy future, through its corporate website and social media.
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.