MCF Energy Announces (1) Drilling Rig on Location for Kinsau-1A Well and (2) Reudnitz Phase 2 Testing Update
VANCOUVER, BC, Aug. 5, 2025 /CNW/ - MCF Energy Ltd. (TSXV: MCF) (FRA: DC6) (OTCQX: MCFNF) is pleased to announce an operational update for the Kinsau-1A well in Lech, Germany, and an update on the Phase 2 testing program for the Reudnitz Z2a well.
Lech, Germany
The RED Drilling Rig 202 has arrived at the Kinsau-1A drill site and is rigging up, with the Kinsau-1A well anticipated to begin drilling operations in the coming days.
It is projected that the Kinsau-1A well will reach total depth in approximately thirty days. After drilling is completed, testing will be performed with a workover rig, so well results will likely be known later in the third quarter of 2025. Discussions are occurring with a local pipeline company for future pipeline construction and offtake.
The Kinsau-1A drilling project is a re-entry and redrill of the Kinsau-1 discovery well, originally drilled in 1983 by Mobil, which produced impressive test results of over 24 million cubic feet (MMCF) of gas and condensate per day. 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 28, to 29. 1983 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 MMCF of gas and 1,510 barrels of condensate. These test results are not necessarily indicative of long-term performance or of ultimate recovery.
Genexco GmbH, a 100% subsidiary of MCF Energy Ltd., is a 20% partner in the Kinsau Gas Project. The regional Mining Authority in Bavaria has inspected and approved the drill site so the location is now ready for drilling.
In the success case, the Kinsau-1A well will provide the Bavaria region of Germany with another option to reduce dependency from imported energy by using domestic resources, as occurs in other hydrocarbon wells in southern Bavaria.
Reudnitz, Germany - Phase 2 Testing Update
Genexco GmbH, the wholly owned subsidiary of MCF Energy, holds a 100% interest in the Reudnitz exploration license. The Company previously announced the option negotiated with Lime Petroleum pursuant to which Lime has the right to acquire an 80% participating interest in the Reudnitz licence following the testing and evaluation of the Reudnitz Z2a well.
Z2A is a horizontal well is completed within the middle Permian Rotliegend sandstone reservoir which is productive throughout Germany. In 2021 the well-produced over 1000 m³/hr at .4 bar flowing pressure. During that test the well produced 13500 m³ during a 7-hour test. During Phase 1 testing in 2024, the initial flow test was completed with the well producing gas at a stable rate of over 1,000 m³/hr at over 4 bars of flowing pressure. This stable pressure increase was a significant improvement over the first tests completed right after the well was drilled.
Following the Phase 1 production test, Genexco (in consultation with Lime) proposed an advanced Phase 2 testing program. At the beginning of the Phase 2 test the well head pressure was found to be 230 bars when the coil tubing entered the well. To stimulate production from the well it was attempted to place and squeeze some 20 m³ of 20% HCl to dissolve the calcium carbonate in the mud cake and some 14 m³ of BSD-40N scale dissolver to dissolve calcium sulfate scale in the near wellbore region. It was not possible to squeeze the entire volume of 20% HCl into the formation.
Genexco has elected to pursue a longer pressure build up with bottom hole gauge recordings. These pressure readings should provide a better picture of the reservoir. Additional stimulation operations may be considered after pressures are determined. A pressure transient analysis or well-test interpretation will be done, and the results of the test should be considered preliminary until the analysis is complete. The test results are not necessarily indicative of long-term performance or of ultimate recovery.
Genexco and Lime Petroleum are currently evaluating the test results. Lime Petroleum has the option to acquire an 80% working interest in Reudnitz. If Lime exercises its option, Lime will carry all costs and expenses related to the pilot development of the reservoir limited to an amount of EUR €5.5 million. Lime would also have the right to assume operatorship of the Reudnitz production licence.
Genexco has secured a nine-month extension of the Reudnitz exploration licence from Germany's mining authority. This extension allows sufficient time to complete Phase 2 testing and to submit an apply for a production licence over the Reudnitz field.
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; OTCQX: MCFNF) and headquartered in Vancouver, British Columbia. For further information, please visit: www.mcfenergy.com.
Additional information on the Company is available at www.sedarplus.ca under the Company's profile.
Cautionary Statements:
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Advisories:
Forward-Looking Information
This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to the Company's plans and other aspects of our anticipated future operations, management focus, strategies, financial, operating and production results, industry conditions, commodity prices and business opportunities. In addition, and without limiting the generality of the foregoing, this press release contains forward-looking information regarding the anticipated timing of development plans and resource potential with respect to the Company's right to assets in Austria. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future.
The forward-looking information is based on certain key expectations and assumptions made by MCF Energy's management, including expectations and assumptions noted subsequently in this press release under oil and gas advisories, and in addition with respect to prevailing commodity prices which may differ materially from the price forecasts applicable at the time of the respective Resource Audits conducted by GCA, and differentials, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of future wells; resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labour and services; the impact of increasing competition; the ability to efficiently integrate assets and employees acquired through acquisitions, the ability to market natural gas successfully and MCF's ability to access capital. Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because MCF Energy can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. MCF Energy's actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that we will derive therefrom. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide securityholders with a more complete perspective on future operations and such information may not be appropriate for other purposes.
Readers are cautioned that the foregoing lists of factors are not exhaustive. These forward-looking statements are made as of the date of this press release and we disclaim any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
Oil & Gas Advisories
Abbreviations: |
|
Bcf |
billion cubic feet |
Bcfe |
billion cubic feet of natural gas equivalent |
Bbl |
barrels |
Boe |
barrels of oil equivalent |
M |
thousand |
MM |
million |
MMbbls |
million barrels of oil |
MMBOE |
million barrels of oil equivalent |
MMBC |
million barrels of condensate |
MMcf |
million cubic feet of natural gas |
Mcfe |
thousand cubic feet of natural gas equivalent |
MMcfe/d |
million cubic feet equivalent per day |
Tcf |
trillion cubic feet |
Km2 |
square kilometers |
€ |
Euros |
SOURCE MCF Energy Ltd.
For further information: Investor Relations, Jim Hill, CEO, Tel: (604) 609-6110, Email: [email protected]
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