MCF Energy Ltd. ("MCF", "MCF Energy" or the "Company") is pleased to announce a progress update on the drilling of the Welchau-1 gas exploration well in Austria. The well successfully reached a depth of 1155 metres on March 10, advancing approximately 4 days ahead of its scheduled timeline. Minor hydrocarbon shows and fracturing patterns suggest the presence of hydrocarbons in deeper formations, and are evidence of an active petroleum system at the Welchau-1 well location. Drilling to the main target is underway with completion and evaluation anticipated by month end.
Initiated on February 24, 2024, the Welchau-1 well aims to explore the Welchau gas prospect, noted for its significant gas potential. Located centrally in Europe, this prospect benefits from its shallow drilling requirements and proximity to existing gas pipelines. It targets reservoirs analogous to those discovered by the nearby Molln-1 well, which confirmed gas presence in 1989. MCF Energy will fund the Welchau-1 well costs up to 50% of the cap of EUR 5.1 million to earn a 25% economic interest in the Welchau Investment Area.
Drilling operations commenced with a 12 ¼ inch bore to a depth of 930 metres, followed by the deployment of wireline logging tools. Subsequently, a 9 5/8 inch casing was installed and cemented to ensure well integrity, particularly through a shale section which will also provide a seal for gas pressure from a deeper underlying reservoir. Currently, drilling proceeds in an 8 ½ inch bore aiming for a projected total depth of at least 1500 metres.
Enhanced drilling speeds, surpassing initial projections due to the adoption of new drilling technologies, have contributed to the project's ahead-of-schedule status. These improvements are anticipated to lower overall well costs.
The image log has identified the presence of fractures and confirms a closed, asymmetric anticline as predicted in the geologic model. The encounter with carbonate formations showing fracturing—a result of deformation anticipated at the Welchau anticline's crest—underscores the potential for enhanced reservoir productivity. Additionally, the detection of minor hydrocarbon shows within these formations, notably a significant increase in trip gas readings from 0.0099% to 0.1765%, primarily methane with traces of heavier hydrocarbons like ethane and propane, is a promising indicator of hydrocarbon accumulation below. Trip gas, which is incorporated into the drilling fluid when the drill pipe is removed, validates the presence of an operative petroleum system.
To date, drilling operations have proceeded without significant challenges, with minimal fluid loss to the formation. All activities adhere to, and in some cases exceed, stringent safety standards.
James Hill, CEO of MCF Energy, expressed optimism about the findings, stating, "The drilling results so far are very promising, and the indications of gas and heavier hydrocarbons are particularly encouraging for us."