Production casing to be installed at
Advances at
Land access for MCF Energy's
Planning underway for Summer 2024 drilling program in
Further to the announcement by MCF Energy on
The Welchau-1 well was drilled a 8 1/2 inch hole to a total depth (TD) of 1,733.1 metres, where a full set of wireline logging tools and an MDT formation test tool was run. The well encountered hydrocarbon shows between the depths of 1,346 metres measured depth (MD) and 1,702 metres MD (a 356 metres gross interval) across three interpreted lithological sequences. At
An extensive logging program was run in the 8 ½" section, which included an image log and cross-dipole sonic in addition to standard logs for well evaluation. Visual interpretation of these logs clearly proves the presence of different types of porosity (vuggy and open fractures). Intervals with strong hydrocarbon shows correlate to either fractured zones or zones with vuggy porosity (see Figures 1 and 2).
Hydrocarbon Shows
Strong hydrocarbon shows have been encountered below the sealing Lunz and Partnach Formations. Several gas peaks as high as 8.22% have been recorded in the reservoir formations below the seal. In addition to the gas shows, liquid hydrocarbon shows were also observed. Those include direct and cut fluorescence on cuttings and core fragments. In core fragments the fluorescence is associated with the presence of fractures. Liquid hydrocarbon and gas inflow was monitored in the well following logging operations further confirming existence of live hydrocarbons.
Formation Sampling
The well was planned to be pressure recorded and downhole sampled by running the Modular Formation Dynamic Tester (MDT) in a dual packer operations mode. The main objective of acquiring downhole samples of reservoir fluids have not yet been achieved.
Five pressure recordings from the interval 1,479 metres to 1,597 metres MD revealed a complex carbonate reservoir setting in an over-pressurised hydraulic system at an equivalent formation density of 1.28 SG. The corresponding permeability of the pressure tested levels show medium to very high permeability which is in agreement with fracture density and petrophysical log interpretation.
The inability to sample reservoir fluids using the MDT from the zones of interest was primarily due to the extensive mud losses into the open fractures of the well and limited testing time. Furthermore operational difficulties hindered the sampling procedures due to tool sticking and the inability to recover representative samples from the zones of interest. The recovery of the stuck MDT tool string required 72 hours of rig time and three attempts to bring the tool string safely back to surface.
During fishing operations to recover the stuck MDT tool, hydrocarbon shows continued to build until the well had to recirculate several times to clear the gas from the well bore to a safe level. Also a strong oil odour was present near the mud tanks and drill floor.
Next Operations
Anticipated well operations in the coming week include the casing, cementing and suspension of the well to preserve the well bore for testing, stimulation and future production, followed by rig down and demobilization of the RED Drilling E200 drill rig. Permit restrictions require drilling and production testing to end by
The well was drilled efficiently and safely, with some drilling mud fluid losses but without any significant drilling problems. Well penetration rates were faster than the original well plan due to the use of new drilling bit technology. Well costs for this success case are in line with the predicted costs.
ADX Energy Ltd. and MCF Energy conformed and strove to exceed all environmental regulations during the drilling and will continue that practice during the upcoming completion operations, exceeding them when possible.
Lech and Lech East Background: Through its German subsidiary
Lech Concession Operations Update: On
Drill site preparation of the Kinsau-1A location has begun with clearing of trees, with drill site construction to commence imminently. See Image 2.
Lech Concession-
Kinsau-3 was drilled across a fault boundary and found an Oil/Water contact which flowed some minor oil and gas but almost 1,500 barrels of water per day, evidence that the reservoir has the capability to produce at a high rate. One of MCF Energy's first planned drilling locations on
See Figure 4 for locations of the three prior Kinsau wells.
Lech East Concession Update: In
Calibrating the seismic data to the Kinsau discovery wells, Machine Learning-Artificial Intelligence software identified thirteen similar or identical seismic targets to the discovery made at Lech in Kinsau- see Figure 5. With success, ten additional development wells have also been identified. Although not productive in the existing Kinsau wells, nine additional wells are spotted for the more shallow Baustein-Chatt Formations which have excellent indicators of gas. These zones are gas productive in the region.
"Our work in
Please see MCF's news release dated
MCF Energy was established in 2022 by leading energy executives to strengthen
Additional information on the Company is available at www.sedarplus.ca under the Company's profile.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE
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
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.
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.
Bcf | billion cubic feet |
Bcfe | billion cubic feet of natural gas equivalent |
Bbl | barrels |
Boe | barrels of oil equivalent |
M | thousand |
MM | million |
MMbbls | million barrels of oil |
MMBOE | million barrels of oil equivalent |
MMBC | million barrels of condensate |
MMcf | million cubic feet of natural gas |
Mcfe | thousand cubic feet of natural gas equivalent |
MMcfe/d | million cubic feet equivalent per day |
Tcf | trillion cubic feet |
Km2 | square kilometers |
€ | Euros |
SOURCE
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