Mr. Jim Hill reports

MCF ENERGY UPDATE OF DRILLING OPERATIONS ON THE KINSAU-1A WELL, REUDNITZ GAS FIELD AND ERLENWIESE LICENCE IN GERMANY

MCF Energy Ltd. has provided an operational update for the Kinsau-1A (Kn-1A) well in Lech, Germany, and licence extension information for the Reudnitz gas field and Erlenwiese licence.

Kinsau 1-A drilling update, Lech, Germany

The Kinsau-1A well has drilled to a total depth of 3,310 metres measured depth (MD) and bottomed in the Jurassic Malm reef carbonate interval. The bottom hole of the new well is within 65 metres of the original Mobil gas discovery well. On Sept. 10, 2025, the first target zone, the Lower Cretaceous/Jurassic Purbeck carbonate interval was penetrated. This is the zone that tested gas at high rates in Mobil's original Kinsau-1 (Kn-1) well in 1983. The Purbeck interval was found at a depth of 3,181 meters MD (2,485.5 m TVDSS (true vertical depth subsea)), three metres higher than the original Kn-1 well. Porosity logs indicate the reservoir facies in Kn-1A have better porosities than seen in Kn-1, with zones of up-to-12-per-cent porosity and streaks as high as 17-per-cent porosity. Preliminary results indicate more than 18 metres of reservoir with an average porosity of 8.6 per cent in the Purbeck interval and a potential hydrocarbon water contact at 3,244 metres MD.

The Purbeck interval comprises interbeds of dolomite and limestone. The dolomite is brown to brownish grey with a sucrosic texture from the sample log. Good shows of gas were identified with a maximum total gas reading of 11.5 per cent. Drilling continued into the Malm interval, which was identified at a depth of 3,216 metres MD. The Malm interval is composed primarily of limestone, light grey, crypto to microcrystalline and partly oolitic with some rare dolomite. The Malm interval also had gas shows. The reef facies of the Malm interval was encountered at 3,230 metres MD and continued to TD. The reef facies of the Malm in Kn-1A has a maximum porosity reading of 20 per cent, much higher than the maximum of 12 per cent found in the original Mobil Kn-1 well. Logs were run and a seven-inch casing was installed and cemented. The rig was released safely and without any incidents on Sept. 17. The testing program will be built from the current log and sample analysis and requires approval of the mining authority. Testing should begin in Q1 2026 when suitable test units are available.

James Hill, chief executive officer of MCF Energy, said: "The Kinsau-1A well is now drilled and ready for testing. Germany has significant natural gas resources within their borders for both personal and industrial needs. Natural gas found within Germany will have a much lower carbon footprint than imported gas, further helping the environment while providing energy security for the nation."

Reudnitz, Germany

MCF/Genexco GmbH received a 27-month extension of the Reudnitz exploration licence from the Landesamt fur Bergbau Geologie und Rohstoffe (LBGR) to Dec. 31, 2027. This will allow the company to continue testing operations and seek a partner to develop this known gas field and secure the company interest in this project.

Erlenwiese, Germany

On Sept. 12, Genexco received the extension notice from the Regierungsprasidium Darmstadt, the relevant mining authority of the federal state of Hesse (MA) for the company's Erlenwiese licence. The MA granted a one-year extension to Sept. 13, 2026. This extension allows the company to finalize work on the licence area with reprocessing of critical 3-D seismic and AI (artificial intelligence) and machine learning analysis.

Background -- Lech, Germany

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 of gas and condensate per day. Mobil drilled the Kinsau-1 well to a depth of 3,940 metres MD, where it encountered basement rocks. Gas and condensate indications were found within the Lower Cretaceous/Jurassic Purbeck formation at 3,179 metres MD. 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 July 29, 1983, with three flowing rates reported: 7,712,000 cubic feet per day at 2,973 pounds per square inch, 14,832,000 cubic feet per day at 2,785 psi and 24,706,000 cubic feet per day at 1,871 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 million cubic feet per day of gas and 1,510 barrels of condensate. These test results are not necessarily indicative of long-term performance or of ultimate recovery.

Genexco, a 100-per-cent subsidiary of MCF Energy, has a 20-per-cent interest in Energieprojekt Kinsau 1 GmbH, the licensee and operator of the Kinsau-1A well.

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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