MCF Energy Ltd. ("MCF", "MCF Energy" or the "Company") provides an update on production testing at the Welchau-1 well in the ADX-AT-II licence in Upper Austria.
Limited inflow was determined based on down hole fluid levels. The well was shut in over the weekend to allow time for the well to flow reservoir fluids into the tubing string. The fluid level in the well was observed on December 3, 2024 indicating limited inflow (less than 1 cubic metre or approximately 6 barrels). Sampling of the well indicated only completion brine (not reservoir fluid) and fine solid particles of unknown origin ("Solid Contaminants") were present in the well as shown in Figure 2. The Solid Contaminants recovered had a petroliferous odour.
The well has been left shut in to determine if it can flow naturally, analyse the composition of well fluids recovered to date and potentially flow sufficient formation fluids ("Minimum Flow Volume") to enter the production tubing - by filling the annular space from the perforations to the bottom of the tubing string ("Further Well Flow Information").
The forward program for the Welchau-1 well will be determined once Further Well Flow Information is collected and assessed including whether to proceed with acidization of the reservoir which is common practice for overcoming well bore damage and enhancing productivity in carbonate reservoirs.
Economic Participation in the Welchau Investment Area
MCF holds a 25% economic interest in the Welchau Investment Area which contains the Welchau-1 well and other emerging prospects in the Northern Calcareous Alps. Under the Energy Investment Agreement between MCF and ADX Energy, MCF funded 50% of Welchau-1 well drilling costs to earn a 25% economic interest in the Welchau Investment Area, which is part of ADX's ADX-AT-II licence in Upper Austria. MCF has met its funding and earning obligations to ADX and it holds MCF's 25% economic interest in the Welchau Investment Area with MCF obliged to pay 25% of ongoing well costs.