Energy
Tuesday, January 9th, 2024 6:17 pm EDT
Key Points
- Increased Economic Interest in Welchau-1 Well: MCF Energy Ltd. has elevated its economic interest participation in the upcoming Welchau-1 well in Austria from 20% to 25%. The company initially entered into an Energy Investment Agreement (EIA) with ADX Energy Ltd to finance half of the expenses for the Welchau-1 exploration well, securing a 20% economic stake. However, an increase in drilling costs to EUR 5.1 million led to an amendment in the EIA, with MCF committing to financing 50% of the expenses, resulting in an increased economic interest to 25%.
- Environmental and Regulatory Compliance: ADX Energy, the Operator of the Welchau-1 well, has adhered strictly to stakeholder consultation, environmental protocols, and necessary pre-drilling measures, including permits and comprehensive geotechnical surveys. The commitment to Environmental, Social, and Governance (ESG) principles is evident in their actions, emphasizing responsible exploration and development.
- Welchau-1 Well Operations: Construction at the Welchau-1 gas well site commenced in December 2023 after receiving environmental clearance. Drilling operations are scheduled to begin in late January 2024, once the well site is fully constructed. The RED Drilling & Services GmbH E-202 rig will be mobilized for drilling, emphasizing safety, environmental protection, and local involvement. The anticipated duration of the drilling is approximately 39 days, contributing to MCF Energy’s commitment to Europe’s energy security through responsible natural gas exploration.
MCF Energy Ltd. has increased its economic interest participation in the upcoming Welchau-1 well in Austria to 25 per cent from 20 per cent.
In early 2023, MCF Energy entered into an Energy Investment Agreement (EIA) with ADX Energy Ltd (ASX: ADX) to finance half of the expenses for the Welchau-1 exploration well, initially capped at EUR 3.8 million, thereby securing a 20% economic stake in the Welchau Investment Area.
ADX Energy as the Operator of the Welchau-1 well has adhered strictly to stakeholder consultation, environmental protocols and essential pre-drilling measures, such as permits and comprehensive geotechnical surveys, evidencing ADX and MCF’s dedication to Environmental, Social, and Governance (ESG) principles. These actions and increases in drilling costs have resulted in a total investment increase for the well to EUR 5.1 million.
MCF and ADX have amended the EIA to outline MCF’s commitment to financing 50% of the Welchau-1 well expenses, up to EUR 5.1 million, in exchange for increasing MCF’s economic interest in the Welchau Investment Area to 25% from 20%. Upon reaching the revised well cost cap, MCF and ADX will cover their respective shares of 25% and 75% for the expenses related to the Welchau Investment Area.
The Operator has confirmed that drilling will begin once the well site construction is finished by late January. This clears the way for the RED Drilling & Services GmbH (RED) E-202 rig to move to the Welchau-1 drilling location.
Mr. Jay Park KC, Executive Chairman of MCF Energy, stated, “Today’s announcement further solidifies MCF Energy’s steadfast commitment to the Welchau-1 exploration project. By elevating our investment to EUR 5.1 million and expanding our economic interest to 25%, we reinforce our support for the Welchau project and unwavering ESG principles.” Welchau-1 Well Operations:
Construction at the Welchau-1 gas well site began on December 15, 2023, after receiving environmental clearance from the Department of Nature Protection of the State Government of Upper Austria. This clearance was the final regulatory step needed to start drilling on the Welchau prospect. Preceding this, the Mining Authority on behalf of the Ministry of Finance of the Republic of Austria issued the drilling permit.
Drilling operations at Welchau are slated to start in late January 2024, once the well site is fully constructed and the RED Drilling & Services GmbH E-202 drilling rig is mobilized. Emphasizing safety, environmental protection, and project execution, the Operator has maximized local involvement, leveraging their strong track record in these areas. The anticipated duration of the drilling is approximately 39 days. About MCF Energy:
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 (TSXV: MCF) (FRA: DC6) (OTCQX: MCFNF) and headquartered in Vancouver, British Columbia. For further information, please visit: www.mcfenergy.com.
MCF Energy invites all stakeholders, including shareholders, employees, and the general public, to stay updated on the Company’s progress and its role in Europe’s energy future, through its corporate website and social media.
Additional information on the Company is available at www.sedarplus.ca under the Company’s profile. Cautionary Statements :
We seek Safe Harbor.
