Mr. Jim Hill reports

MCF ENERGY UNVEILS PROMISING UPDATE ON SUBSTANTIAL NATURAL GAS WEIGHTED POTENTIAL RESOURCE IN EUROPEAN EXPLORATION PORTFOLIO

MCF Energy Ltd. over the past 12 months has demonstrated unwavering commitment to establishing a robust portfolio of natural-gas-weighted exploration prospects. The company's strategic vision centres on harnessing the vast potential of European energy resources, contributing to regional energy security and sustainable economic growth.

Key highlights and operational update:

• Aggregation success: MCF Energy has achieved remarkable success in its European acquisition endeavours, potentially unlocking substantial natural-gas-focused resources across multiple prospects within its portfolio, most with accompanying and extensive 3-D seismic surveys.
• Concession grants: Immediately impactful concession grants obtained in Germany by Genexco GmbH, a wholly owned subsidiary of MCF Energy:
  • The granting of the Lech East concession which covers almost 100 square kilometres offsetting the Lech concession where Genexco Gas GmbH will twin a 1983 gas and condensate discovery which flowed significant gas and condensate with its Kinsau 1A well described below;
  • The granting of the Erlenwiese concession in the Rhein Graben which covers 86 square km and has several identified prospects to be matured in 2024. All the 2-D seismic surveys have been acquired and a 3-D seismic survey is being reviewed for acquisition. The proprietary artificial intelligence and machine learning process will be applied to reduce prospect risk;
  • The application to German authorities to transfer the Velden-Teising licence to Genexco from Genexco Gas, a 20-per-cent-owned affiliate of Genexco.
• Operational update:
  • Granting to ADX Energy Inc. an extension from Sept. 30 to Dec. 31, 2023, to drill the Welchau prospect in Austria. Delay caused by the final environmental permit, is expected by the operator ADX, to be granted around Oct. 31;
  • Filing for the permit to drill from the Bavarian Mining Authority for the Kinsau 1A redrill of the Lech discovery well. Final permit to drill is expected to be granted in the fourth quarter of 2023;
  • Granting of the permit to rework and test the Reudnitz Z2 MCF Energy horizontal well in the Reudnitz gas field, 100 per cent owned by MCF Energy. The reworking and testing operations are scheduled to begin at the end of October, 2023.
• Technological advancements: The company has invested in cutting-edge AI and machine learning tools enabling it to notably enhance its evaluation and interpretation efficiency. Extending well beyond traditional methodologies, MCF Energy will ensure this industry-leading geological and geophysical analysis is applied to each of its prospects prior to the deployment of any material development capital.
• Resource assessment: Based on its rigorous geological and geophysical assessments MCF Energy has confirmed the presence of significant quantities of petroleum and natural gas, indicating the potential for extensive petroleum and natural gas resources. The resources assigned are subject to significant risks. Gaffney Cline Associates Ltd. (GCA) prepared a resource audit report for the Reudnitz block, Germany, in February, 2023.

The Reudnitz discovery production development is based on a phased development plan, ultimately utilizing cryogenic separation technology for the separation of produced raw gas volumes. In phase 1, geological and geophysical studies and a reservoir update, which is currently in progress. Cryotec Anlagenbau GmbH has completed the design stage of the methane/nitrogen separation system for gas well flows with helium recovery. Project budget cost of the installation is expected to be approximately 4.2 million euros (net price). Phase 2 includes the planning and acquisition of a 3-D seismic survey, well planning, drilling and testing of an appraisal well, and associated studies with an estimated cost (including contingency) of 9.2 million euros. Rework of the Reudnitz Z2 horizontal well is budgeted and should begin at the end of October, 2023.

GCA prepared a resource audit report for the Welchau prospect, ADX-AT-II concession, Austria, in December, 2022.

The ADX-AT-II concession was granted in April, 2022, and has a 16-year duration. The only commitment associated with the concession is drilling the Welchau-1 well. Planning for the well is advanced with an AFE for the well issued and a drilling rig contractor identified.

The Welchau-1 well is scheduled to be drilled in December of 2024, and the gross dry hole cost of the well is estimated at 3.81 million euros. Success case is estimated at 4.3 million euros, in the approved AFE. The well location has been identified and a land access agreement reached with the Austrian Forestry Ministry. Pipeline access is estimated at 18 kilometres from the location with standard well completion technology utilized. Pipeline costs have not been estimated. First commercial production estimated in late calendar 2024 or early 2025.

• Regional impact: These findings have the potential to transform the energy landscape in the European region, enhancing energy security and reducing dependence on imports.
• Strategic partnerships: The company continues to forge strategic partnerships with local and international entities, fostering collaboration and knowledge sharing in the pursuit of European energy development.
• Market expansion: MCF Energy is actively expanding its market reach, working closely with regulatory bodies, governments and industry stakeholders to develop mutually beneficial agreements and frameworks for the exploration of Europe's natural resources.
• Sustainability commitment: MCF Energy remains steadfast in its commitment to responsible and sustainable energy development, and an unwavering commitment to adhering to best practices in environmental stewardship and community engagement.

Jay Park, the executive chairman of MCF Energy, stated: "This operational update reflects our dedication to responsibly advancing Europe's energy independence and security goals. We are proud of our team's achievements and look forward to contributing to the energy security and prosperity of the region. Our vision is equally aligned with the global transition to cleaner energy sources, and we are committed to playing a pivotal role in this transition."

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 a publicly traded company and is headquartered in Vancouver, B.C.

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