MCF Energy Updates on Welchau-1 and Kinsau-1A Developments

MCF Energy's Operational Update on Welchau-1 and Kinsau-1A

MCF Energy Ltd. provides a comprehensive update on its ongoing operations, focusing on the production testing at the Welchau-1 well and the wellsite preparation for Kinsau-1A.

Welchau-1 Production Testing Results

The Welchau-1 well, situated within the ADX-AT-II licence, has recently undergone significant production testing. This project is in collaboration with ADX Energy Ltd., where MCF holds a 25% economic interest. The first test of the Steinalm formation produced meaningful data concerning potential gas flows from the well.

Details of the Testing Process

During the testing phase, MCF Energy observed gas at the surface accompanied by a steady flow of liquids, which included drilling mud and traces of oil. The outputs were characterized by a liquid flow rate fluctuating between 240 and 290 barrels per day, indicating promising prospects for further hydrocarbons in the area.

The tested intervals were from 1452.5 meters to 1463.5 meters and from 1474.5 meters to 1480 meters, both of which showed fractures conducive to hydrocarbon presence. However, initial findings have been deemed inconclusive regarding the volume of hydrocarbons present, necessitating a retest of these intervals in the future.

Further Insights and Next Steps

To gain more clarity on the fluids produced, MCF employed a production logging tool (PLT), which indicated the primary flow point was located at approximately 1478 meters. This suggests the possible presence of an oil/water contact deeper in the formation. Moving forward, MCF is dedicated to retesting the Upper perforations once conditions allow.

Upcoming Reifling Formation Testing

Plans are underway for a new testing program focusing on the Reifling formation. Following the completion of the Steinalm test, the company will proceed by isolating the Lower perforations and testing the Upper portion of the Reifling formation, which is approximately 128 meters thick.

Expected Testing Intervals for Reifling

During this upcoming testing phase, MCF plans to perforate across three specific intervals, with depths of 1324 to 1340 meters, 1346 to 1351 meters, and 1358 to 1382 meters respectively. This segmentation is anticipated to provide a clearer picture of the hydrocarbon potential.

Kinsau-1A Wellsite Preparation

Concurrently, the Kinsau-1A wellsite preparation is proceeding on schedule as MCF Energy seeks to enhance its operational footprint. Since starting construction in October, significant progress has been made. The clearing and leveling of the well pad are now completed.

Background on Kinsau-1A

The Kinsau-1 well, originally drilled in 1983 by Mobil, made a breakthrough gas and condensate discovery. However, it was deemed non-economic and subsequently suspended. The new Kinsau-1A well aims to re-enter this original site, targeting depths near previously productive zones.

Company Insights and Future Outlook

MCF Energy's CEO, James Hill, expressed that while the initial results from the Steinalm formation were unclear, he remains optimistic about the Reifling test outcomes. The positive momentum regarding the Kinsau-1A construction is encouraging as they prepare to begin drilling in the forthcoming quarter.

About MCF Energy

MCF Energy was founded with a clear mission to bolster energy security in Europe through responsible natural gas exploration. The company has secured interests in various natural gas projects throughout the region, reflecting its commitment to lead the transition towards cleaner energy sources.

Frequently Asked Questions

What recent updates has MCF Energy provided?

MCF Energy recently updated on the production testing results from the Welchau-1 well and the ongoing preparations for the Kinsau-1A wellsite.

How much economic interest does MCF have in the Welchau Investment Area?

MCF Energy holds a 25% economic interest in the Welchau Investment Area.

What were the findings from the Welchau-1 testing?

The first testing revealed significant gas flows, with liquid production rates between 240 to 290 barrels per day, but further tests are required for conclusive results.

What are the next steps for MCF Energy?

The next steps include retesting the Upper Steinalm intervals and initiating testing programs for the Reifling formation.

When is Kinsau-1A expected to commence drilling?

Drilling for Kinsau-1A is expected to begin in the first quarter of 2025.

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