MCF Energy Ltd. (TSXV: MCF, FRA: DC6, OTCQX: MCFNF) has recently provided significant updates regarding its operations in Austria and Germany, focusing on two key projects: the Welchau-1 well in Upper Austria and the Kinsau-1A wellsite in Lech, Germany. These developments highlight the company’s ongoing efforts to enhance energy security in Europe through responsible exploration and development of natural gas resources.
In collaboration with ADX Energy Ltd., MCF Energy has completed the first flow test of the Steinalm formation at the Welchau-1 well, located within the ADX-AT-II licence area. MCF holds a 25% economic interest in this investment area, which includes not only the Welchau-1 well but also other promising prospects in the Northern Calcareous Alps.
The initial results from this test revealed gas at the surface along with a stable liquid flow rate of between 240 to 290 barrels per day. The liquids consisted primarily of drilling mud, likely contaminated formation water, and traces of oil. The testing focused on two perforation intervals at depths of 1452.5 to 1463.5 meters (Upper) and 1474.5 to 1480 meters (Lower), where hydrocarbon shows were previously observed during drilling.
Further analysis using a production logging tool (PLT) indicated that most fluid production originated from the Lower perforations, suggesting that a fracture system may be channeling hydrocarbons from deeper within the formation. However, the results were not conclusive regarding the presence of hydrocarbons, prompting plans for a retest of the Upper perforations after isolating the Lower intervals.
Looking ahead, MCF plans to commence testing of the Reifling formation by the end of next week. This will involve perforating three intervals within a 128-meter thick section of the formation. The outcomes from these tests will determine future exploration strategies.
In parallel with activities at Welchau-1, MCF Energy is making steady progress on preparing the Kinsau-1A wellsite in Lech, Germany. Construction began in October and is on track for completion by the end of December 2024. The site has been cleared and leveled, with a new wellhead installed over the original Kinsau-1 well stub.
The Kinsau-1 well, originally drilled by Mobil in 1983, previously yielded gas and condensate but was deemed uneconomic at that time. With a final stable flow rate nearing 25 million cubic feet per day, re-entering this well presents an opportunity for MCF to tap into its productive zone within 100 meters of its prior depth.
James Hill, CEO and Director of MCF Energy, expressed cautious optimism about these developments. He acknowledged disappointment over the initial unclear results from the Steinalm formation but remains hopeful that subsequent testing will confirm significant hydrocarbon resources. Hill emphasized that progress is being made at both sites and that further updates will be provided as operations continue.
MCF Energy’s strategic initiatives in Austria and Germany underscore its commitment to responsible resource development.
