VANCOUVER, BC, Aug. 21,
2023 /CNW/ - MCF Energy Ltd. (TSXV: MCF) (FRA:
DC6) (OTCPK: MCFNF) ("MCF Energy" or the "Company") is pleased to
provide an update on its Austrian operations, specifically
regarding well permitting and planned spudding at the large Welchau
anticline, anticipated in Q4 2023.
Highlights:
- Drilling permit for the Welchau-1 well has been granted by the
Mining Authority, acting on behalf of Austria's Ministry of Finance (BMF), after
thorough documentation, expert evaluations, and a smooth public
hearing at the proposed drill site.
- The permit allows drilling, testing, and potential extended
production testing of Welchau-1.
- Environmental clearance marks the final permitting step, backed
by an expert's report and stakeholder consultation.
- Well-site construction is anticipated to commence during the
4th quarter of 2023, immediately followed by drilling
operations.
- The Welchau prospect is mapped as covering over 100 square km
in size and could contain significant reserves of gas and
condensate.
- MCF Energy identified the Welchau prospect area as a
high-priority opportunity for Europe's energy security in its review of
large-scale natural gas exploration prospects. In alignment with an
energy investment agreement forged between MCF Energy and ADX
Energy Ltd. ("ADX"), the operator of the ADX-AT-II licence
in Upper Austria, the Company has committed to financing 50% of the
expenses tied to the Welchau-1 well in exchange for a 20% economic
interest in the Welchau Investment Area, strategically positioned
within the southern section of the ADX-AT-II licence.
A drilling permit ("Drilling Permit") for the Welchau-1 well has
been issued by the Mining Authority on behalf of the Ministry of
Finance of the Republic of Austria
to ADX. The Drilling Permit was issued after evaluating detailed
technical, legal, and environmental documents, along with expert
input. A public hearing on June 28,
2023, yielded no significant objections.
The Drilling Permit allows ADX to drill and test the Welchau-1
well and undertake a longer-term production test if required. The
Drilling Permit is associated with two designated rig types: a
drilling rig and a workover rig. These rigs are supplied by RED
Drilling & Services GmbH (RED), as provided by ADX's existing
rig services contract.
The final step in the permitting process involves obtaining an
environmental clearance ("Environmental Clearance").This clearance
will enable the drilling and testing of the Welchau-1 well in
accordance with the Drilling Permit. The process for Environmental
Clearance is based on evaluating a report by a government-appointed
expert, which has been completed and submitted to the local
authorities in Upper Austria. Similar to the drilling permit
process, this phase will involve a stakeholder hearing period.
Looking ahead, MCF Energy and ADX anticipate commencing well site
construction in the fourth quarter of 2023, immediately followed by
drilling operations. The success case drilling program is expected
to take approximately 39 days.
Operational Readiness
All essential items for drilling the Welchau-1 well have been
procured. The drilling will take place within a pre-existing rig
services contract with RED. The drilling and related services will
mainly involve skilled local personnel from Upper Austria. ADX has
made a concerted effort to prioritise local involvement,
particularly in areas with a strong history of safety,
environmental care, and dependable project completion.
James Hill, CEO of MCF Energy,
stated, "We are pleased that the Drilling Permit has been issued to
ADX, and we are on track to drill in Q4 2023.
"The prospect is located up-dip from a 1989 gas discovery
(Molln-1 well), which had a gas column of at least 400 metres and
tested condensate-rich, pipeline quality gas at a maximum flow rate
of 3.5 MMCFD A successful outcome at Welchau could be a significant
catalyst for MCF Energy given the size of the Welchau
anticline."
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; OTCPK: MCFNF) and headquartered in Vancouver, British Columbia. For further
information, please visit: www.mcfenergy.com.
Additional information on the Company is available at
www.sedar.com under the Company's profile.
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Oil and Gas Advisories
The term "boe" means barrel of oil equivalent on the basis of 1 boe to 6,000 cubic feet of natural gas. Boe may be misleading,
particularly if used in isolation. A boe conversion ratio of 1 boe
for 6,000 cubic feet of natural gas is based on an energy
equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the
wellhead. "Boe/d" and boepd" mean barrel of oil
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barrels of oil per day. NGLs means natural gas
liquids.
This press release contains certain oil and gas metrics and
defined terms which do not have standardized meanings:
BCFE = Billions of cubic feet equivalent
MMBOE =
Millions of barrels of oil equivalent
MMCFD = Millions
cubic feet per day
SOURCE MCF Energy Ltd.