MCF Energy Acquires Accretive Czech Gas Projects with Immediate Production and Growth Potential
"This acquisition was driven by the opportunity to quickly start natural gas production by reopening three closed wells and using fifteen ready-to-drill sites in the
The production licences are
There are two proved and productive targets, the Miocene sands and Devonian carbonates. Significant untested potential exists in the oil-productive fractured basement.
MCF Energy anticipates returning one currently shut-in production well at
Additional Proved Undeveloped locations are present within the production licences. Krasna NP 823 and the LM Production licences are currently under review; both have wells that can be reworked and returned to production at low cost.
An Independent Reserve report by
The exploration licences are Skalice-Ropice (North) (11,712.8 acres or 47.4 sq km), Moravka (South) (14,801.6 acres or 59.9 sq. km) and Trinec (North-East) (16,037.1 acres or 61.9 sq km).
MCF Energy will continue the exploration work started by the previous operator, using improved technology. The Company anticipates developing the Skalice-Ropice (North) exploration licence by drilling four wells in 2025 and five wells in 2026 and one in 2027. Nine of these locations have Proved Undeveloped plus Probable plus Possible reserves, and one is assigned Probable plus Possible reserves. Drilling will test for proved Miocene and Devonian reservoirs and could prove four potential 'bonus' zones could lead to significantly increased inventory of drilling locations and reserves across the acreage. These potential zones, not evaluated by the Report, include thicker Miocene sands, shallow Silesian reservoirs, thicker Devonian carbonates, and fractured basement targets which have shown to produce oil in other production concessions.
With the Acquisition, the Company will gain full ownership of the Czech licences. This involves issuing 17.5 million MCF Energy shares to the seller, with resale limits, and a cash payment of
Third Source Energy S.R.O. ("Manager"), familiar with local operations, will manage the Czech assets from its office in
The Czech assets will be part of
MCF Energy invites all stakeholders, including shareholders, employees, and the general public, to stay updated on the Company's progress and its role in
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
Advisories :
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 Reserve Audits conducted by
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.
Statements herein are made consistent with Canadian Oil and Gas Evaluation (COGE) Handbook. The resources definitions used in preparing this report are those contained in the COGE Handbook and the Canadian Securities Administrators National Instrument 51-101 (NI 51-101). Readers should give attention to the estimates of individual classes of resources and appreciate the differing probabilities of recovery associated with each class as explained herein. "Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. There is a 90% probability that the actual remaining quantities recovered will equal or exceed the estimated proved reserves. "Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. "Possible" reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves. "Discovered petroleum initially-in-place" or "discovered resources" or "DPIIP" Definition: That quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of discovered petroleum initially-in -place includes production, reserves and contingent resources; the remainder is unrecoverable. "Developed" reserves are those reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure to put the reserves on production. "Developed Producing" reserves are those reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty. "Developed Non-Producing" reserves are those reserves that either have not been on production, or have previously been on production, but are shut-in, and the date of resumption of production is unknown. "Undeveloped" reserves are those reserves expected to be recovered from known accumulations where a significant expenditure is required to render them capable of production. They must fully meet the requirements of the reserves classification (proved, probable) to which they are assigned. P = proved undeveloped, PP = Proved + Probable undeveloped, PPP = Proved + Probable + Possible undeveloped "Prospective resources" Definition: 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. Both risked and unrisked prospective resources are referred to in this document.
Abbreviations: |
|
|
|
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 |
Mcfe |
thousand cubic feet of natural gas equivalent |
MMcfe/d |
million cubic feet equivalent per day |
Tcf |
trillion cubic feet |
Km2 |
square kilometres |
€ |
Euros |
SOURCE