Mr. Jim Hill reports

MCF ENERGY WELCHAU-1 WELL TESTING UPDATE: LIGHT OIL RECOVERED DURING WELL UNLOADING OPERATIONS

MCF Energy Ltd. has released initial results from the resumption of testing of the Reifling formation at the Welchau-1 well in Austria. MCF holds a 25-per-cent economic interest in the Welchau project, with ADX Energy as the operator with the remaining 75-per-cent interest.

The 128-metre-thick Reifling formation is the shallowest of four carbonate reservoirs intersected at Welchau-1. An injection test was performed and a small acidization treatment (six cubic metres across 45 metres of perforations) achieved inflow from the previously unresponsive reservoir.

Hydrocarbon gas and light oil were recovered and sampled at surface while unloading the well by swabbing. The oil and gas samples are currently being analyzed. Insufficient inflow was achieved for stable flow, indicating the small-volume acid treatment did not access open-fracture network.

A Reifling formation reservoir pressure has not been recorded to date. However, the well has been suspended to record pressure buildup and fluid influx.

Future operations: The well will be monitored to record pressure buildup and fluid inflow. The Welchau operator, ADX, is evaluating further testing, including a larger acid stimulation of the Reifling formation requiring a coiled tubing unit. MCF will review ADX's plans once proposed.

The nature of the oil and gas sampled from this test supports the operator's revised structural interpretation, indicating that a light oil column may exist within the crest of the Welchau anticline approximately 500 metres up dip from Welchau-1. The lack of biodegradation of the oil sampled within the Reifling and Steinalm formations as well as the observed overpressured system further support the interpretation of an up-dip oil accumulation.

Although the Welchau play is relatively complex, the potential reward is substantial for an onshore location, given its relatively shallow drill depths near to existing infrastructure. Continuing work will provide an improved understanding of the shallow light oil accumulation and the deeper gas potential within the large Welchau anticline.

Compositional analysis of oil and gas samples is currently being undertaken. The well has been suspended to enable the monitoring of pressure buildup and fluid inflow. There was insufficient inflow during testing for stable flow to be established indicating acid treatment did not access open-fracture networks. The Reifling formation is characterized as a marly limestone with relatively short fractures, which may be interconnected with acidization.

The Reifling formation encountered in the Welchau-1 well is interpreted to be at or near the oil water contact for a light oil accumulation in the Welchau anticline, which is mapped approximately 500 metres up dip of the Welchau-1 well.

The Welchau-1 well is located in the Northern Calcareous Alps hydrocarbon fairway. It was drilled to test gas and condensate potential within the Middle Triassic fractured carbonate reservoir sequences below the Triassic Lunz-Partnach regional seal complex. The well drilled through a hydrocarbon-bearing complex fractured carbonate reservoir interval with continuous hydrocarbon shows.

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.

We seek Safe Harbor.