MCF Energy Ltd. (TSXV: MCF, FRA: DC6, OTCQX: MCFNF) is gearing up for a significant milestone in its exploration efforts with the upcoming flow testing of the Welchau-1 well, located in the ADX-AT-II licence area in the foothills of the Austrian Alps. The company has announced that preparations are on track, with flow testing expected to commence within a week, following the successful setup of necessary equipment and infrastructure at the site.
Since the mobilization of the RED Drilling & Services W-102 workover rig on November 4 and 5, MCF Energy has made substantial progress. The rig has been successfully positioned at the Welchau-1 well, and all surface testing equipment has been mobilized. The current operations include well completion activities, which involve installing a completion assembly comprising tubing, packer, and perforating systems. This setup is crucial for the forthcoming flow testing phase.
The initial focus will be on testing approximately 450 meters of hydrocarbon shows, starting with the deeper Steinalm formation before moving to the shallower Reifling formation. The comprehensive testing program is designed to evaluate reservoir characteristics such as fluid type, flow capacity, and reserves potential.
The flow testing operations at the Welchau-1 discovery well will be conducted continuously for up to six months, following the environmental clearance granted by the Upper Austrian State Government. This approval allows MCF Energy to implement a comprehensive program aimed at enhancing the understanding of the reservoir’s dynamics. The key objectives of this testing program include identifying the types of hydrocarbons present in each reservoir, assessing the flow capacity to evaluate how much fluid can be produced, and estimating the potential reserves by determining the volume of hydrocarbons that could be extracted. Overall, these operations are essential for evaluating the commercial viability of the Welchau-1 well and its surrounding areas.
Each testing phase will involve multiple flow and shut-in periods to monitor pressure responses using downhole gauges. This data is critical for assessing any potential impact on well performance due to drilling activities.
The Welchau-1 well has already shown promising signs, with hydrocarbon indications detected over a 450-meter interval that intersects three primary carbonate reservoirs. Notably, preliminary analyses suggest that the hydrocarbons may consist of high-gravity light oil (43.6° API) accompanied by associated gas, an encouraging finding compared to earlier expectations of a liquids-rich gas discovery.
MCF Energy holds a 25% economic interest in the Welchau Investment Area through an Energy Investment Agreement with ADX Energy Ltd., which funds 50% of the well costs up to EUR 5.1 million. This partnership not only strengthens MCF’s position in this promising region but also enhances its operational flexibility without incurring significant additional costs.
Looking ahead, MCF Energy is optimistic about the potential outcomes from the Welchau-1 testing program. James Hill, CEO and Director of MCF Energy, expressed enthusiasm for what this discovery could mean for Austria’s energy landscape, stating: “We are excited to begin testing at Welchau-1. A successful test could provide significant resources to Austria and enhance the country’s energy security.”
In addition to Welchau-1, MCF is exploring further opportunities in nearby regions, including potential leads at Rossberg and deeper reservoirs below existing casing depths at Welchau.
