MCF Energy Announces (1) Drilling Rig on Location for Kinsau-1A Well and (2) Reudnitz Phase 2 Testing Update

Cision Canada

05-08-2025

VANCOUVER, BC, Aug. 5, 2025 /CNW/ - MCF Energy Ltd. (TSXV: MCF) (FRA: DC6) (OTCQX: MCFNF) is pleased to announce an operational update for the Kinsau-1A well in Lech, Germany, and an update on the Phase 2 testing program for the Reudnitz Z2a well.
The RED Drilling Rig 202 has arrived at the Kinsau-1A drill site and is rigging up, with the Kinsau-1A well anticipated to begin drilling operations in the coming days.
It is projected that the Kinsau-1A well will reach total depth in approximately thirty days. After drilling is completed, testing will be performed with a workover rig, so well results will likely be known later in the third quarter of 2025. Discussions are occurring with a local pipeline company for future pipeline construction and offtake.
The Kinsau-1A drilling project is a re-entry and redrill of the Kinsau-1 discovery well, originally drilled in 1983 by Mobil, which produced impressive test results of over 24 million cubic feet (MMCF) of gas and condensate per day. Mobil drilled the Kinsau-1 well to a depth of 3940 metres, where it encountered basement rocks. Gas and condensate indications were found within the Jurassic Purbeck Formation at 3,179 metres. The well was completed by stimulating it with acid and tested over a 22.5-metre perforated interval. The entire well test took 3.5 months to complete. A variable rate test was conducted on July 28, to 29. 1983 with three flowing rates reported: 7,712 thousand cubic feet per day (MCFD) at 2,973 psi, 14,832 MCFD at 2,785 psi, and 24,706 MCFD at 1871 psi. The total test pressure dropped from 4,110 psi to 4,090 psi (283.4 to 282 bar). The test resulted in a recovery of 45.9 MMCF of gas and 1,510 barrels of condensate. These test results are not necessarily indicative of long-term performance or of ultimate recovery.
Genexco GmbH, a 100% subsidiary of MCF Energy Ltd., is a 20% partner in the Kinsau Gas Project. The regional Mining Authority in Bavaria has inspected and approved the drill site so the location is now ready for drilling.
In the success case, the Kinsau-1A well will provide the Bavaria region of Germany with another option to reduce dependency from imported energy by using domestic resources, as occurs in other hydrocarbon wells in southern Bavaria.
Genexco GmbH, the wholly owned subsidiary of MCF Energy, holds a 100% interest in the Reudnitz exploration license. The Company previously announced the option negotiated with Lime Petroleum pursuant to which Lime has the right to acquire an 80% participating interest in the Reudnitz licence following the testing and evaluation of the Reudnitz Z2a well.
Z2A is a horizontal well is completed within the middle Permian Rotliegend sandstone reservoir which is productive throughout Germany. In 2021 the well-produced over 1000 m³/hr at .4 bar flowing pressure. During that test the well produced 13500 m³ during a 7-hour test. During Phase 1 testing in 2024, the initial flow test was completed with the well producing gas at a stable rate of over 1,000 m³/hr at over 4 bars of flowing pressure. This stable pressure increase was a significant improvement over the first tests completed right after the well was drilled.
Following the Phase 1 production test, Genexco (in consultation with Lime) proposed an advanced Phase 2 testing program. At the beginning of the Phase 2 test the well head pressure was found to be 230 bars when the coil tubing entered the well. To stimulate production from the well it was attempted to place and squeeze some 20 m³ of 20% HCl to dissolve the calcium carbonate in the mud cake and some 14 m³ of BSD-40N scale dissolver to dissolve calcium sulfate scale in the near wellbore region. It was not possible to squeeze the entire volume of 20% HCl into the formation.
Genexco has elected to pursue a longer pressure build up with bottom hole gauge recordings. These pressure readings should provide a better picture of the reservoir. Additional stimulation operations may be considered after pressures are determined. A pressure transient analysis or well-test interpretation will be done, and the results of the test should be considered preliminary until the analysis is complete. The test results are not necessarily indicative of long-term performance or of ultimate recovery.
Genexco and Lime Petroleum are currently evaluating the test results. Lime Petroleum has the option to acquire an 80% working interest in Reudnitz. If Lime exercises its option, Lime will carry all costs and expenses related to the pilot development of the reservoir limited to an amount of EUR €5.5 million. Lime would also have the right to assume operatorship of the Reudnitz production licence.
Genexco has secured a nine-month extension of the Reudnitz exploration licence from Germany's mining authority. This extension allows sufficient time to complete Phase 2 testing and to submit an apply for a production licence over the Reudnitz field.
About MCF Energy
MCF Energy was established in 2022 by leading energy executives to strengthen Europe's energy security through responsible exploration and development of natural gas resources within the region. The Company has secured interests in several significant natural gas exploration projects in Austria and Germany with additional concession applications pending. MCF Energy is also evaluating additional opportunities throughout Europe. The Company's leaders have extensive experience in the European energy sector and are working to develop a cleaner, cheaper, and more secure natural gas industry as a transition to renewable energy sources. MCF Energy is a publicly traded company (TSX.V: MCF; FRA: DC6; OTCQX: MCFNF) and headquartered in Vancouver, British Columbia. For further information, please visit: www.mcfenergy.com.
Additional information on the Company is available at www.sedarplus.ca under the Company's profile.
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Oil & Gas Advisories
SOURCE MCF Energy Ltd.