Vancouver-based MCF Energy Ltd. has secured a multi-zone oil and natural gas exploration concession covering approximately 87 square kilometers (33.6 square miles) in western Germany.
The Hessen Ministry of Environment, Climate and Energy, through its mining authority, awarded the Erlenwiese exploration concession within the massive Central Graben hydrocarbon system to Genexco GmbH, a wholly owned subsidiary of MCF Energy, the company said in a press release on Monday. The concession is good for an initial term of three years.
Strategically located southwest of Frankfurt, and 125 kilometers from oil refining and natural gas processing infrastructure, Erlenwiese is “potentially relevant to Europe’s long-term energy security and independence,” MCF Energy said , and added that several similar and commercial discoveries. support the planned development potential of the area.
The Central Graben is one of the most prominent Mesozoic rift structures regionally within the larger system of the Central European Basin, which spans several countries. MCF Energy said it has identified several targets with significant development potential in the Pechelbronn and Rotliegend structures, as well as shallower natural gas accumulations. “On a local level, activities focused on geothermal development have further corroborated the energy development potential of this concession,” added the company.
According to the release, the multi-zone potential of the concession is widespread throughout the stratigraphy of the Pechelbronn Formation, in the upper, middle and lower beds.
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 complement and de-risk its geological and geophysical analysis.
“We continue to make good progress in acquiring large land concessions with the potential to accumulate oil and natural gas resources,” said Peter Eckhard Oehms, MCF Energy’s managing director for Germany. “We are very pleased with this award and would like to thank the local mining authority for their assistance throughout the process.”
“We are committed to Germany’s energy security and independence,” said MCF Energy Director and CEO James Hill. “This award adds further depth to our inventory of prospects as we work diligently together with our German counterparts to deliver value to all stakeholders.”
Drilling permit for Austrian assets
Meanwhile, MCF Energy received a drilling permit for the Welchau-1 well in Austria’s Northern Limestone Alps from the Mining Authority, acting on behalf of the Austrian Ministry of Finance (BMF), according to a statement from previous press
MCF Energy will fund 50 percent of the costs associated with 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 to be more than 38.6 square miles (100 square kilometers) in size and could contain significant gas and condensate reserves, the release said.
The permit allows ADX to drill and test the Welchau-1 well and conduct a long-term production test if necessary. The permit is associated with a drilling rig and a repair rig, which will be supplied by RED Drilling & Services GmbH under an existing contract with ADX, according to the statement. The last step in the authorization process is to obtain an environmental permit.
MCF Energy and ADX expect to begin well site construction in the fourth quarter, immediately followed by drilling operations. MCF Energy anticipates the success case drilling program to last approximately 39 days.
“The prospect is upstream 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 peak flow 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.
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