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Bullboard - Stock Discussion Forum Mcf Energy Ltd V.MCF

Alternate Symbol(s):  MCFNF

MCF Energy Ltd. is a Canada-based junior resource company. The Company is engaged in the identification, and the exploration and development, of both proven and unproven reserves via drilling and/or acquisition with a focus on the European oil and gas sector. The Company has secured interests in several significant natural gas exploration projects in Austria and Germany with additional... see more

TSXV:MCF - Post Discussion

Mcf Energy Ltd > BrickmantoStock
View:
Post by practicalguy on Sep 19, 2024 4:49pm

BrickmantoStock

I for one really appreciate your posts since you seem to have been following this stock for awhile. 


For what it is wort, here are my technical thoughts on the stock. 


Overall

It has a great technical team who has done this before. They have picked up some great properties and have a couple of low risk/high reward events in the near future. 


Welchau 

The well has several potential zones in fractured carbonates on the giant anticline they drilled. 


Based on the information from ADX, it appears as if there is very low water content since they can't see an obvious water contact on logs. 


ADX will test several zones independently, so there could be up to 5 or 6 news releases on production rates if there is good success. 


The main variable left to understand (since we appear to have a hydrocarbon source as well as a strong seal) is productivity. This depends on water content (apparently low), viscosity (43 API is low viscosity) and permeability. 


Permeability is the great unknown, but based on the ADX information they have found some matrix permeability along with natural fracturing. The natural fracturing makes sense due to local tectonic activity in Austria. Acidizizing the formation will enhance natural permeability. 


I am hopeful that we have a strong oil zone (>500 bopd)and a couple of strong gas zones (>5 mmcfd). Oil is a good quick cash flow event and the natural gas is the long term value. 
 

Kinsau

This should be better than the original 24 mmcfd test due to better technology (seismic should improve the permeability and completions should better enhance the permeability). 


Good luck to all intelligent, informed investors of MCF Energy. I am looking forward to the next few months. In my opinion this is a good asymmetric stock - limited downside with a very strong potential upside.

Comment by practicalguy on Sep 22, 2024 3:46pm
Moving on to economics: PIR10 (Profit to Invest Ratio @ NPV10) is an excellent overall measure of the economic viabilty of a project.  Projects under 0.3 PIR10 do not get funded in the oil industry. Most companies like to see pre drill estimates of 0.5 or higher to take into account the potential of higher costs, lower productivity or lower prices than forecast.  PIR10 of over 1 ...more  
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