Mr. Jim Hill reports

MCF ENERGY UPDATE OF WELCHAU-1 TESTING: WELL RECOVERS GAS AT SURFACE DURING 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. The well was stimulated by pumping six cubic metres of acid followed by a completion brine volume into the well, ensuring that all the acid was injected into the reservoir and allowed to soak before the well was flowed back. To initiate flow in the well, it was necessary to unload the hydrostatic column of brine by swabbing the well. Swabbing resulted in brine, methane gas and carbon dioxide being flowed to surface. The CO2 was the result of a reaction between the injected acid and the carbonate reservoir.

These initial results of testing are encouraging for the following reasons:

1. The recovered well fluids include a hydrocarbon gas (methane) monitored at surface.
2. The hydrocarbon recovery is the first from the Reifling formation from within the Welchau anti-cline or the basin.
3. A relatively small amount of acid used for the stimulation of the Reifling formation has resulted in flow from a previously unresponsive reservoir.

Continuing testing operations will include further swabbing to clean up the well with a view to achieving continuous flow of oil, gas, or oil and gas. Produced fluids will be sampled to determine hydrocarbon content and type. Wellbore pressure measurements will be taken to confirm the pressure connectivity of the Reifling formation with the rest of the Welchau anti-cline. If continuous production is established, the well flow rate will be measured.

It should be noted that well work over operations are 12 hours per day during weekdays. The well is currently shut in until swabbing operations resume.

The primary testing objectives are to determine the hydrocarbon content and flow characteristics of the Reifling formation. The Reifling formation is interpreted to be at or near the oil-water contact for a light oil accumulation in the Welchau anti-cline, which is mapped approximately 500 metres updip 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 headquartered in Vancouver, B.C.

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