MCF Energy provided an update on its ongoing operations in Germany, highlighting significant progress at the Reudnitz gas field and the Kinsau-1A wellsite.

MCF Energy’s wholly owned subsidiary, Genexco GmbH, holds a 100% interest in the Reudnitz RZ2 gas discovery well. The company has successfully completed Phase 1 of the testing and development operations, achieving a stable flow rate of over 1,000 m³/hr at 5 bar.

Encouraged by the positive results, Genexco has submitted Phase 2 plans to the German mining authority, Laufzeit der Erlaubnis zur Aufsuchung (LNGR). This phase will involve additional stimulation and testing to further enhance production rates.

To facilitate a more comprehensive Phase 2 testing program, Genexco applied for an extension of the Reudnitz Exploration Licence. The LNGR has approved a nine-month extension, extending the license's validity to September 30, 2025.

MCF Energy has entered a farmout agreement with Lime Petroleum Holdings AS. Lime has already paid EUR 500,000 to fund the workover, flow testing, and evaluation of the RZ2 horizontal well, covering the costs of both Phase 1 and Phase 2.

Lime is currently reviewing the data from Phase 1 and will decide on exercising its option to acquire up to an 80% working interest in Reudnitz after the completion of Phase 2. If Lime exercises the option, it will assume the costs and expenses related to the pilot development of the reservoir, up to a maximum of EUR 5.5 million. Additionally, Lime has the right to assume operatorship of the Reudnitz Production Licence.

Upon completion of Phase 2 testing, Genexco plans to submit an application for a Production Licence covering the Exploration Licence area.

Construction of the wellsite for the Kinsau-1A re-entry well commenced in October 2024 and is progressing as planned, with completion expected by the end of December 2024. The original Kinsau-1 well stub has been located, and a new wellhead has been installed. The concrete pad has been finished, and final construction is underway. Installation of the remaining asphalt pad is scheduled to begin in mid-December, weather permitting.

The original Kinsau-1 well, drilled by Mobil in 1983, encountered a gas and condensate discovery but was deemed uneconomic at the time and subsequently abandoned. The new well, Kinsau-1A, will be a re-entry targeting a productive zone within 100 meters of the original discovery.

James Hill, CEO and Director of MCF Energy, expressed his enthusiasm for the ongoing progress. He said, "We are delighted with the positive outcomes at the Reudnitz Gas field and the extension of the exploration license. The Phase 2 testing program holds significant potential to further optimize production rates. Additionally, the construction of the Kinsau-1A wellsite is on track, and we anticipate spudding the well in Q1 2025. We remain committed to providing regular updates as these projects advance."