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Vancouver-based MCF Energy Ltd. has secured a multi-zone oil and natural gas exploration concession spanning approximately 33.6 square miles (87 square kilometers) in Western Germany.
The Hessen Ministry of Environment, Climate, and Energy, through its mining authority, granted the exploration concession for Erlenwiese within the massive Central Graben hydrocarbon system to Genexco GmbH, a wholly owned subsidiary of MCF Energy, the company said in a news release Monday. The concession is good for an initial term of three years.
Strategically located southwest of Frankfurt, and within 77.7 miles (125 kilometers) of oil refining and natural gas processing infrastructure, Erlenwiese is “potentially relevant to Europe’s long-term energy security and independence”, MCF Energy said, adding that several analogous and commercial discoveries support the forecast development potential of the area.
The Central Graben is one of the most regionally prominent Mesozoic rift structures within the larger Central European Basin system, spanning several countries. MCF Energy said it has identified several targets featuring significant development potential within the Pechelbronn and Rotliegend structures, as well as shallower natural gas accumulations. “Locally, activities focused on geothermal development have further corroborated the energy development potential within this concession”, the company added.
The multi-zone potential of the concession is pervasive across the full stratigraphy of the Pechelbronn formation, across the upper, middle, and lower beds, according to the release.
MCF Energy said it has acquired the available 2D data and is in the process of obtaining the 3D seismic data. The company will also perform its own AI and machine-learning analysis to further supplement and de-risk its geological and geophysical analysis.
“We continue to make great progress in acquiring large land concessions prospective for petroleum and natural gas resource accumulations”, MCF Energy Managing Director for Germany Peter Eckhard Oehms said. “We are very pleased with this award and would like to thank the local mining authority for its assistance throughout the process”.
“We are committed to Germany’s energy security and independence”, MCF Energy CEO and Director James Hill said. “This award adds further depth to our inventory of prospects, as we work diligently alongside our German counterparts, to deliver value for all stakeholders”.
Drilling Permit for Austrian Asset
Meanwhile, MCF Energy was granted a drilling permit for the Welchau-1 well in the Northern Calcareous Alps of Austria by the Mining Authority, acting on behalf of Austria’s Ministry of Finance (BMF), according to an earlier news release.
MCF Energy will finance 50 percent of the expenses tied to the Welchau-1 well in exchange for a 20 percent economic interest in the Welchau Investment Area under an agreement with ADX Energy Ltd., which is the operator of the ADX-AT-II license in Upper Austria. The Welchau prospect is mapped as covering over 38.6 square miles (100 square kilometers) in size and could contain significant reserves of gas and condensate, the release said.
The permit allows ADX to drill and test the Welchau-1 well and undertake a longer-term production test if required. The permit is associated with a drilling rig and a workover rig, which will be supplied by RED Drilling & Services GmbH under an existing contract with ADX, according to the release. The final step in the permitting process involves obtaining an environmental clearance.
MCF Energy and ADX expect to begin well site construction in the fourth quarter, immediately followed by drilling operations. MCF Energy projects the success-case drilling program to take approximately 39 days.
“The prospect is located up-dip from a 1989 gas discovery (Molln-1 well), which had a gas column of at least 400 meters and tested condensate-rich, pipeline quality gas at a maximum flow rate of 3.5 MMCFD [million cubic feet per day]. A successful outcome at Welchau could be a significant catalyst for MCF Energy given the size of the Welchau anticline”, Hill said.
To contact the author, email rocky.teodoro@rigzone.com
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