MCF Energy recovers light oil at Welchau-1

Executive Summary

• MCF Energy reported initial results from the resumption of testing at the Welchau-1 well in Austria, specifically targeting the Reifling formation.
• Light oil and hydrocarbon gas were recovered and sampled during well unloading operations, supporting the operator's revised structural interpretation of a potential light oil column up-dip from the well.
• While inflow was insufficient for stable flow due to the acid treatment not accessing open-fracture networks, the well has been suspended to monitor pressure buildup, and further testing including larger acid stimulation is being evaluated.

Key Details

• Well and Operator: Welchau-1 well in Austria; MCF Energy holds a 25% economic interest, with ADX Energy as the operator holding 75%.
• Formation Tested: Reifling formation, identified as the shallowest of four carbonate reservoirs intersected at the well, with a thickness of 128 metres.
• Operational Actions: An injection test was performed, followed by a small acidization treatment (six cubic metres across 45 metres of perforations).
• Results:
  • Hydrocarbon gas and light oil were recovered and sampled at surface via swabbing during well unloading.
  • Insufficient inflow was achieved for stable flow, indicating the small-volume acid treatment did not access open-fracture networks.
  • The Reifling formation is characterized as a marly limestone with relatively short fractures.
• Geological Interpretation:
  • The nature of the sampled oil and gas supports a revised structural interpretation suggesting a light oil column may exist within the crest of the Welchau anticline, approximately 500 metres up-dip from Welchau-1.
  • Lack of biodegradation in oil sampled from Reifling and Steinalm formations, along with an observed overpressured system, supports the interpretation of an up-dip oil accumulation.
  • The Reifling formation is interpreted to be at or near the oil-water contact for this light oil accumulation.
• Future Operations:
  • The well is suspended to record pressure buildup and fluid influx.
  • ADX Energy is evaluating further testing, including a larger acid stimulation of the Reifling formation requiring a coiled tubing unit.
  • MCF Energy will review ADX's plans once proposed.
• Well Context: Located in the Northern Calcareous Alps hydrocarbon fairway, drilled to test gas and condensate potential within Middle Triassic fractured carbonate reservoir sequences below the Triassic Lunz-Partnach regional seal complex.

Notable Quotes

• "The nature of the oil and gas sampled from this test supports the operator's revised structural interpretation, indicating that a light oil column may exist within the crest of the Welchau anticline approximately 500 metres up dip from Welchau-1."
• "Continuing work will provide an improved understanding of the shallow light oil accumulation and the deeper gas potential within the large Welchau anticline."