MCF Energy Ltd. ($MCF) is excited to announce initial results from the resumed testing of the Reifling Formation at the Welchau-1 well in Austria. MCF holds a 25% economic interest in the Welchau project, with ADX Energy acting as the operator with the remaining 75% interest.
The Reifling Formation, measuring 128 meters thick, is the shallowest of four carbonate reservoirs encountered at Welchau-1. An injection test along with a small acidization treatment (6m³ across 45m of perforations) resulted in inflow from the previously unresponsive reservoir.
During the well unloading process by swabbing, hydrocarbon gas and light oil were recovered and sampled at the surface. These samples are currently undergoing analysis. However, the inflow was insufficient to establish stable flow, indicating that the small volume acid treatment did not adequately access the open fracture network.
As of now, reservoir pressure in the Reifling Formation has not been recorded. The well has been temporarily suspended to monitor pressure buildup and fluid influx.
Future Operations
The Welchau-1 well will be closely monitored for pressure buildup and fluid inflow. Operator ADX is considering further testing, including a larger acid stimulation of the Reifling Formation that would require a coiled tubing unit. MCF will assess ADX's plans once they are proposed.
The characteristics of the oil and gas sampled support the operator's revised structural interpretation, suggesting a light oil column may exist within the crest of the Welchau anticline, approximately 500 meters updip from Welchau-1. Additionally, the lack of biodegradation observed in the oil from the Reifling and Steinalm Formations, alongside an over-pressured system, further substantiates the interpretation of an updip oil accumulation.
Despite the complexities associated with the Welchau play, the potential rewards are significant, particularly given the onshore location and shallow drilling depths near existing infrastructure. Ongoing assessments will enhance the understanding of the shallow light oil accumulation as well as the deeper gas potential within the expansive Welchau anticline.
Currently, a compositional analysis of the oil and gas samples is underway. The well remains suspended to facilitate monitoring for pressure buildup and fluid inflow. Testing indicated that the acid treatment was insufficient to access open fracture networks, as the Reifling Formation is characterized by marly limestone with relatively short fractures that may be interconnected through acidization.
The Reifling Formation encountered in the Welchau-1 well is interpreted to be at or near the oil-water contact for a light oil accumulation in the Welchau anticline, which is mapped approximately 500 meters updip of the Welchau-1 well.
The Welchau-1 well is situated in the Northern Calcareous Alps hydrocarbon fairway and was drilled to explore gas and condensate potential within the Middle Triassic fractured carbonate reservoir sequences beneath the Triassic Lunz-Partnach regional seal complex. The well traversed a hydrocarbon-bearing complex fractured carbonate reservoir interval with continuous hydrocarbon shows.
MCF Energy, founded in 2022 by experienced energy executives, aims to bolster Europe's energy security through responsible exploration and development of natural gas resources in the region. The company has secured interests in several significant natural gas exploration projects in Austria and Germany, with additional concession applications pending. MCF is also evaluating further opportunities across Europe. The leadership team possesses extensive experience in the European energy sector and is committed to developing a cleaner, more affordable, and secure natural gas industry as a transitional step towards renewable energy sources. For more information, visit www.mcfenergy.com.
More details about the company can be found at www.sedarplus.ca.