VANCOUVER, BC, Oct. 22, 2024 /CNW/ - MCF Energy Ltd. (TSXV: MCF) (FRA: DC6) (OTCQX: MCFNF) ("MCF", "MCF Energy" or the "Company") is pleased to announce an operations update for projects in Austria and Germany.
Austria
Figure 1- Drillsite construction begins for Kinsau-1A (CNW Group/MCF Energy Ltd.)
The target date to commence operations is November 4 2024. The Welchau-1 well test program is designed to confirm the hydrocarbon characteristics, determine well productivity, the potential connected volumes and ultimately an estimate of recoverable resource volumes from future potential development wells.
Austria- Background
The Welchau-1 well was suspended on March 28, 2024 for future well testing after running and cementing 7-inch casing down to the well total depth ("TD") at 1,733 metres measured depth. Operations were suspended to comply with the conditions of environmental permits limiting drilling and testing operations to the Austrian winter months from October 1, 2023 to March 31, 2024.
Based on the data analysis to date, it is most likely that Welchau is a high API hydrocarbon liquid (gas condensate to very light oil with 43.6° API gravity) and associated gas discovery rather than a liquids rich gas discovery as was predicted prior to drilling.
The formations of greatest interest are the Reifling and the Steinalm from a resource perspective, both of Triassic age (around 240 million years). The two prospective formations will be tested with the first being the primary target of the well, the Steinalm Formation (118 metres), a fractured carbonate sequence which was encountered in the nearby, downdip Molln-1 discovery well that tested condensate rich gas in 1989.
The Steinalm will be perforated, and flow tested. An acid stimulation program has been designed and may be used to clean up any formation damage which occurred during the drilling process. Austrian legislation allows the cumulative production of up to 30,000 barrels of oil and gas equivalent during the testing phase. The planned sequence of operations and testing has a duration for the Steinalm formation of between six to ten weeks.
The second zone to be perforated and tested will be the Reifling Formation (128 metres), just above the Steinalm. This interval is a fractured carbonate sequence, looks very promising from both logs and hydrocarbon shows. An acid stimulation program for the Reifling Formation has been designed and may be used to clean up any formation damage which occurred during the drilling process.
After testing and results evaluated the well may be drilled deeper to explore additional targets below the current zones. Based on current structural modelling there remains over 1,000 metres of exploration potential located below the current Welchau-1 well total depth.
MCF has executed an Energy Investment Agreement (EIA) with ADX VIE GmbH ("ADX") to fund some past costs and 50% of Welchau-1 well costs up to a well cost cap of EUR 5.1 million to earn a 25% economic interest in the Welchau Investment Area. MCF has met its funding obligations and has earned in the Welchau Investment Area within the ADX-AT-II licence in Upper Austria. This area contains the Welchau discovery well and other emerging oil and gas prospects. MCF is obliged to pay 25% of ongoing well costs.
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