11:10 AM EDT, 03/25/2024 (MT Newswires) -- MCF Energy Ltd. ( MCFNF ) was at last look on Monday down 11.5% after it provided an update on the drilling progress of the Welchau-1 exploration well in Austria, and an update on anticipated operations in the Lech and Lech East concessions in Germany.

WELCHAU-1 UPDATE

Further to the announcement by MCF Energy ( MCFNF ) last week of the discovery of condensate rich gas shows at Austria's Welchau-1 well, an extensive logging program has been completed, revealing high correlation between hydrocarbon shows and open fracture networks essential for well productivity. The well continues to show strong indications of hydrocarbons in the mud system and has flowed hydrocarbons to surface despite over-balanced mud weight. Production casing will be run.

The Welchau-1 well was drilled a 8 1/2 inch hole to a total depth (TD) of 1,733.1 metres, where a full set of wireline logging tools and an MDT formation test tool was run. The well encountered hydrocarbon shows between the depths of 1,346 metres measured depth (MD) and 1,702 metres MD (a 356 metres gross interval) across three interpreted lithological sequences. On March 24, the well bore was being conditioned prior to running production 7 inch casing.

Strong hydrocarbon shows have been encountered below the sealing Lunz and Partnach Formations, MCF says. Several gas peaks as high as 8.22% have been recorded in the reservoir formations below the seal. In addition to the gas shows, liquid hydrocarbon shows were also observed. Those include direct and cut fluorescence on cuttings and core fragments.

CEO James Hill said ,"After careful review of the logs at Welchau-1 well and continued, encouraging shows of hydrocarbons in the well and at surface, we are cementing 7-inch production casing to the bottom of the Welchau-1well. We will finish our analysis of the logs and the cores we have recovered and are excited to return for production testing in October 2024."

MCF also provided an update on the Lech and Lech East Concessions in Germany. Through its German subsidiary Genexco GmbH, MCF Energy ( MCFNF ) has a 20% interest in the Lech Concession (approximately 10 km2), and is carried for the costs of the upcoming Kinsau-1A well up to 5 million euros. Genexco GmbH has a 100% interest in the Lech East Concession.

On Tuesday March 12, representatives of RED Drilling, Genexco and MCF met with the Water Board of Bavaria to discuss MCF's upcoming Kinsau-1A reentry of the 1983 Mobil discovery well Kinsau-1. All issues identified by the Water Board were resolved. This was the final approval needed in order to obtain the drilling permit for the Kinsau-1A well located on the Lech Concession. The final drilling permit for Kinsau-1A is anticipated after the Easter holidays, and procurement of a drilling rig is underway.

Drill site preparation of the Kinsau-1A location has begun with clearing of trees, with drill site construction to commence imminently.

Price: 0.27, Change: -0.03, Percent Change: -11.48