MCF Energy Ltd. advised 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 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 Fourth Quarter 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.
Core 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.