Mr. James Hill reports

MCF ENERGY: DRILLING PERMIT SECURED FOR LARGE WELCHAU GAS PROSPECT IN AUSTRIA

MCF Energy Ltd. has provided an update on its Austrian operations, specifically regarding well permitting and planned spudding at the large Welchau anticline, anticipated in Q4 2023.

Highlights:

• Drilling permit for the Welchau-1 well has been granted by the mining authority, acting on behalf of Austria's Ministry of Finance (BMF), after thorough documentation, expert evaluations and a smooth public hearing at the proposed drill site.
• The permit allows drilling, testing and potential extended production testing of Welchau-1.
• Environmental clearance marks the final permitting step, backed by an expert's report and stakeholder consultation.
• Well site construction is anticipated to commence during the fourth quarter of 2023, immediately followed by drilling operations.
• The Welchau prospect is mapped as covering over 100 square kilometres in size, and could contain significant reserves of gas and condensate.
• MCF Energy identified the Welchau prospect area as a high-priority opportunity for Europe's energy security in its review of large-scale natural gas exploration prospects. In alignment with an energy investment agreement forged between MCF Energy and ADX Energy Ltd., the operator of the ADX-AT-II licence in Upper Austria, the company has committed to financing 50 per cent of the expenses tied to the Welchau-1 well in exchange for a 20-per-cent economic interest in the Welchau investment area, strategically positioned within the southern section of the ADX-AT-II licence.

A drilling permit for the Welchau-1 well has been issued by the mining authority on behalf of the Ministry of Finance of the Republic of Austria to ADX. The drilling permit was issued after evaluating detailed technical, legal and environmental documents, along with expert input. A public hearing on June 28, 2023, yielded no significant objections.

The drilling permit allows ADX to drill and test the Welchau-1 well, and undertake a longer-term production test if required. The drilling permit is associated with two designated rig types: a drilling rig and a workover rig. These rigs are supplied by RED Drilling & Services GmbH, as provided by ADX's existing rig services contract.

The final step in the permitting process involves obtaining an environmental clearance. This clearance will enable the drilling and testing of the Welchau-1 well in accordance with the drilling permit. The process for environmental clearance is based on evaluating a report by a government-appointed expert, which has been completed and submitted to the local authorities in Upper Austria. Similar to the drilling permit process, this phase will involve a stakeholder hearing period. Looking ahead, MCF Energy and ADX anticipate commencing well site construction in the fourth quarter of 2023, immediately followed by drilling operations. The success case drilling program is expected to take approximately 39 days.

Operational readiness

All essential items for drilling the Welchau-1 well have been procured. The drilling will take place within a preexisting rig services contract with RED. The drilling and related services will mainly involve skilled local personnel from Upper Austria. ADX has made a concerted effort to prioritize local involvement, particularly in areas with a strong history of safety, environmental care and dependable project completion.

James Hill, chief executive officer of MCF Energy, stated: "We are pleased that the drilling permit has been issued to ADX, and we are on track to drill in Q4 2023.

"The prospect is located up-dip from a 1989 gas discovery (Molln-1 well), which had a gas column of at least 400 metres and tested condensate-rich, pipeline-quality gas at a maximum flow rate of 3.5 MMCFD (millions cubic feet per day). A successful outcome at Welchau could be a significant catalyst for MCF Energy given the size of the Welchau anticline."

About MCF Energy Ltd.

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 headquartered in Vancouver, B.C.

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