MCF Energy: Could This Company Move Europe's Energy Needle?

“Finally, through the hard work of our staff, all our projects are active and underway. We are very excited to begin testing on the Welchau-1 well in Austria and the start of the drill site construction for the Kinsau-1A well site in Germany. The first phase testing of the Z2a horizontal well at Reudnitz has turned out better than expected, and good progress is being made in returning our wells in the Czech assets to production in the next few weeks. The fourth quarter of 2024 will be busy and impactful for the Company, and we expect to provide many updates in the coming months as these projects proceed," said James Hill, CEO of MCF Energy.

Two Years of Non-Stop Grit and Focus

Formed in 2022, MCF Energy was established to strengthen Europe's energy security through responsible exploration and the development of natural gas resources across Western Europe. Over the past two years the company has greatly expanded its portfolio of projects across Austria and Germany, and most recently – it's added to the shelf – energy assets in the Czech Republic.

James Hill, CEO of the company, retired just months before Russia's invasion of Ukraine. Because of the invasion, he cut his retirement short and since, has spent the majority of his time in western Europe over the past few years. Europe is familiar to the LA-based geologist as he's led several projects across the Region over the last forty.

Following a recent announcement, the company is one step closer to potentially shifting the needle for Europe's energy landscape. As certain countries, especially Austria, remain highly dependent on Russia for energy, even today, the company's efforts could be transformative for the bloc. 

A Timely Feat

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. This mission seems to align with countries within the bloc, especially Germany.

Europe's biggest economy, which neighbors Austria, is set to revive the domestic production of natural gas ‘to support national security or geostrategic supply security interests' according to its newly announced Growth Initiative. Introduced and approved by the German cabinet back in July 2024, the country has adjusted its goals to align with the needs of its economy. This timely, given the end of Ukraine's transit agreement with Russia.

MCF Energy has several projects ongoing in Germany at Lech, Leach East, and Reudnitz and Erlenweise (image of Kinsau 1A well at Lech in Germany). At Lech, drill site construction for the Kinsau 1A well began on October 15. It is estimated the site will be drill-ready by mid-December, and rig availability is currently being determined, with drilling estimated to start in Q1 2025. At Lech East, which is adjacent to Lech, the environmental report has been submitted, and well-planning has started. A permit to drill is anticipated by Q2 of 2025. 

The End of an Era 

Europe and Russia are at war and have continued to do a significant amount of business with one another over the past few years. It’s remarkable as it is bizarre. Come December, the final link connecting Europe to Russia will be broken — this being, the transit of Russian gas through Ukraine, which has been ongoing since 1993. As of 2004, roughly 80% of Russia's gas to the EU has been sent through Ukrainian territory, but with Ukraine's strategic goal to impose sanctions on Russian gas, it can no longer continue this way.
According to Ukraine's Prime Minister Denys Shmyhal, following the end of the agreement, the country will "count on a gradual diversification of supplies.

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