Welchau-1 Discovery Well Drilling has been completed and the well cased for future flow testing; data analysis ongoing

Preliminary data analysis of recovered hydrocarbons from downhole sampling indicates condensate-rich gas to light oil from the Steinalm formation

VANCOUVER, BC, April 2, 2024 /CNW/ - MCF Energy Ltd. (TSXV: MCF) (FRA: DC6) (OTCQX: MCFNF) ("MCF", "MCF Energy" or the "Company") is pleased to advise the Welchau-1 well drilling operations were concluded following release of the rig at 4.00 pm CET on the 28th of March 2024. The Welchau-1 well was drilled utilizing the RED E200 drill rig in the ADX-AT-II exploration licence in Upper Austria.

Since the last report on the 25th of March 2024 the well has been successfully cased and temporarily shut in for future testing. The well was drilled ahead of schedule and below budget thereby minimizing well costs while recovering an extensive data set that is required to assess the potential of the Welchau discovery.

A programme of extensive analysis has commenced on well data including hydrocarbon shows, formation cuttings recovered while drilling, petrophysical borehole log data, formation fluid sampling and formation coring. The analysis of pressurised sample chambers run in the well contained small amounts of liquid hydrocarbons (gas condensate to very light oil) which is detailed in the Well Data Analysis below. As previously reported down hole sampling was limited due to tool sticking which impacted the recoverability of samples. The results of the well data analysis will be used to update the resource range for the Welchau discovery and design the testing program for the Welchau-1 well. Future testing of the well is expected to be undertaken with a cost-effective workover rig.

The analysis work programme has already commenced from down hole pressurised fluid samples and the 7 metres of whole core recovered from the Steinalm formation of the Welchau-1 well. The core analysis work is expected to take sixteen weeks and the fluid sample work three weeks.

Downhole fluid samples

The analysis of downhole pressurised fluid samples recovered from the Welchau-1 well is being carried out at a specialised laboratory in Vienna. As reported previously the Modular Formation Dynamic Tester (MDT) tool was stuck in the well bore during sampling which limited the recoverability of samples. Despite these difficulties two sample bottles were recovered containing small amounts of liquid hydrocarbons (gas condensate to very light oil) although most of the fluid was drilling mud that had been lost into the formation during drilling.

The samples are not an ideal representation for PVT (pressure-volume-temperature) analysis given the amount of drilling mud contamination. However preliminary results indicate a similarity to the hydrocarbon system encountered and tested at in the down dip Molln-1 well drilled in 1989.

The planned Welchau-1 production test in Q4 2024 is expected to confirm the characteristics of the hydrocarbon system. Further analysis of the downhole fluid samples will continue, including viscosity, densities and if sample volumes permit a full PVT analysis.

Work has commenced on the analysis of the Welchau-1 7 metres of core at a specialized laboratory in Vienna. Preliminary assessment of the core using computerised tomography images (CT scan) confirms the reservoir is a carbonate with a low matrix porosity, vuggy porosity and an extensive vertical fracture network. This triple-porosity system is also evident from the open hole log data. The extent of vertical fractures within the core, which by their orientation cannot be seen in the borehole, is encouraging and can be expected to be very favourable for reservoir connectivity and production performance. It should also be noted that the indicative permeable events observed in the borehole (predominantly vugs and fractures), tabulated in the Company's previous announcement, is only a component of the net rock at the borehole and does not account for the low porosity matrix or the vertical fractures.

A clean 100% carbonate rock has by its nature the capacity to store hydrocarbons however the key to estimating the net pay volumes (i.e. the connected porosity system) is inclusive of the combination of low permeable but producible matrix porosity, the higher permeable vugs and the fractures. It should be noted that the fractures provide the primary flow pathways through the rock to the well bore.

Core analysis measurements including porosity and permeability of the matrix, the vuggy rock and fractures will be carried out during data analysis. The Welchau-1 well test data will be instrumental to the calibration of the 'triple-porosity' system for volumetric analysis and reservoir performance modelling.

The planned Welchau-1 well test will seek to confirm the hydrocarbon characteristics, determine the well productivity, the potential connected volumes to the well and ultimately the recoverable resource size.

James Hill, CEO of MCF Energy, said, "We are very excited about evaluating the information gained from the Welchau 1 well and building a testing and completion programme to be executed when we return to the wellsite in the fall."

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 (TSX.V: MCF; FRA: DC6; OTCQX: MCFNF) and headquartered in Vancouver, British Columbia. For further information, please visit: www.mcfenergy.com.

Additional information on the Company is available at www.sedarplus.ca under the Company's profile.

Cautionary Statements:

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Forward-Looking Information

This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to the Company's plans and other aspects of our anticipated future operations, management focus, strategies, financial, operating and production results, industry conditions, commodity prices and business opportunities. In addition, and without limiting the generality of the foregoing, this press release contains forward-looking information regarding the anticipated timing of development plans and resource potential with respect to the Company's right to assets in Austria. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future.

The forward-looking information is based on certain key expectations and assumptions made by MCF Energy's management, including expectations and assumptions noted subsequently in this press release under oil and gas advisories, and in addition with respect to prevailing commodity prices which may differ materially from the price forecasts applicable at the time of the respective Resource Audits conducted by GCA, and differentials, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of future wells; resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labour and services; the impact of increasing competition; the ability to efficiently integrate assets and employees acquired through acquisitions, the ability to market natural gas successfully and MCF's ability to access capital. Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because MCF Energy can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. MCF Energy's actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that we will derive therefrom. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide securityholders with a more complete perspective on future operations and such information may not be appropriate for other purposes.

Readers are cautioned that the foregoing lists of factors are not exhaustive. These forward-looking statements are made as of the date of this press release and we disclaim any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Oil & Gas Advisories

Boe means a barrel of oil equivalent on the basis of 6 Mcf of natural gas to 1 barrel of oil equivalent. Mcfe means one thousand cubic feet of natural gas equivalent on the basis of 6 Mcfe: 1 barrel of oil. A boe conversion ratio of 6 Mcf: 1 Boe and 6 Mcfe: 1 bbl. are based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the price of crude compared to the price of natural gas at various times can be significantly different from the energy equivalence of 6 Mcf: 1 boe or 6 Mcfe: 1 bbl., using Boe's and Mcfe's may be misleading as an indication of value.

Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub classified based on project maturity.

Not all exploration projects will result in discoveries. The chance that an exploration project will result in the discovery of petroleum is referred to as the "chance of discovery." Thus, for an undiscovered accumulation, the chance of commerciality is the product of two risk components — the chance of discovery and the chance of development.

Estimates of resources always involve uncertainty, and the degree of uncertainty can vary widely between accumulations/projects and over the life of a project. Consequently, estimates of resources should generally be quoted as a range according to the level of confidence associated with the estimates. An understanding of statistical concepts and terminology is essential to understanding the confidence associated with resources definitions and categories. These concepts, which apply to all categories of resources, are outlined below. The range of uncertainty of estimated recoverable volumes may be represented by either deterministic scenarios or by a probability distribution. Resources should be provided as low, best, and high estimates as follows:

• Low Estimate and/or 1C in the case of Contingent Resources: This is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate.
• Best Estimate and/or 2C in the case of Contingent Resources: This is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate.
• High Estimate and/or 3C in the case of Contingent Resources: This is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate.

This approach to describing uncertainty may be applied to reserves, contingent resources, and prospective resources. There may be significant risk that sub commercial and undiscovered accumulations will not achieve commercial production, however, it is useful to consider and identify the range of potentially recoverable quantities independently of such risk.

Abbreviations:

SOURCE MCF Energy Ltd.

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