MCF Energy Secures Significant Concession Adjacent to Historic German Gas Discovery
VANCOUVER, BC, Aug. 2, 2023 /CNW/ - MCF Energy Ltd. (TSXV: MCF) (FRA: DC6) (OTCQX: MCFNF) ("MCF Energy" or the "Company") is pleased to announce the successful acquisition of a substantial natural gas exploration concession ("Lech East") spanning approximately 100 km² in Southwest Bavaria, Germany, granted by the Bavarian State Ministry of Economic Affairs, Regional Development and Energy for an initial term of three years. Lech East is adjacent to another 10 km² concession ("Lech"). In a previously drilled well at Lech, a remarkable flow test rate of over 20 million cubic feet per day of gas was recorded. MCF Energy's subsidiary, Genexco GmbH, holds a 20% carried interest at Lech and plans to start drilling an offset development well in Fall 2023. The Company considers Lech (20% to MCF Energy) and Lech East (100% to MCF Energy) as key prospects for Germany's energy security.
Highlights:
- Lech East, a 100 km² natural gas exploration concession in Bavaria, Germany, has been granted to a wholly owned subsidiary of MCF Energy.
- Modern 3D seismic interpretation, aided by machine learning and AI, has yielded promising prospects, offsetting significant historical gas and oil discoveries.
- Over 20 million cubic feet per day of gas was tested at the Kinsau #1 well at Lech in 1983; MCF Energy is fully carried for a 20% stake up to EUR 5 million in a well at Lech to be drilled later this year.
- Lech and Lech East benefit from excellent accessibility and infrastructure.
- MCF Energy plans EUR 4.6 million exploration program at Lech East, including well drilling.
In 1983, Mobil drilled the Kinsau #1 well to a depth of 3940 metres, where it encountered basement rocks. Gas and condensate indications were found within the Jurassic Purbeck Formation at 3,179 metres. The well was completed by stimulating it with acid and tested over a 22.5-metre perforated interval. The entire well test took 3.5 months to complete. A variable rate test was conducted on July 28th to 29th, with three flowing rates reported: 7,712 thousand cubic feet per day (MCFD) at 2,973 psi, 14,832 MCFD at 2,785 psi, and 24,706 MCFD at 1871 psi. The total test pressure dropped from 4,110 psi to 4,090 psi (283.4 to 282 bar). The test resulted in a recovery of 45.9 million cubic feet (MMCF) of gas and 1,510 barrels of condensate. These test results are not necessarily indicative of long-term performance or of ultimate recovery.
MCF Energy has obtained proprietary 3D Seismic coverage over Lech and Lech East. The Company's interpretation of this data, aided by machine learning and artificial intelligence analysis, has led to the identification and evaluation of several promising prospects with multiple potentially productive zones. Several prospects are offsetting or on trend with historical wells that yielded significant gas discoveries which would be highly commercial today, including an impressive flow test rate of over 20 million cubic feet per day of gas.
Situated approximately 55 km southwest of Munich in a rural region, Lech and Lech East enjoy excellent surface accessibility and infrastructure, including convenient proximity to pipelines. As part of its commitment, MCF Energy will undertake a staged exploration work program at Lech East, culminating in the drilling of a well by 2026 or sooner. The three-year budget for Lech East is EUR 4.6million, including well drilling.
Peter Eckhard Oehms, MCF Energy Managing Director for Germany, stated, "I want to thank the Bavarian Ministry for granting this Concession in record time and convey our commitment to working responsibly as stewards of the environment to move this compelling project forward, with material future economic benefits for the local communities."
James Hill, CEO and Director of MCF Energy, stated, "We are delighted to add the exciting Lech East project to our portfolio, ahead of the planned drilling at our adjacent Lech concession site later this year. Based on our interpretation of the seismic data and historical discoveries, the Lech and Lech East concessions hold substantial promise for development of a significant new natural gas supply for Germany's energy security."
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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Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. The information in this news release about the completion of the proposed transaction and financing described herein, and other forward-looking information includes but is not limited to information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms of such transaction. Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, risks related to the Company's inability to perform the proposed transactions.
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SOURCE MCF Energy Ltd.
Investor Relations, Jim Hill, CEO, Tel: (604) 609-6110, Email: [email protected]; Public Relations, Sarah Mawji, Email: [email protected]
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