MCF Energy Ltd. announced that energy investment partner and operator ADX Energy Ltd. has completed the wellsite construction and secured the drilling rig and all long lead items for development of the Welchau natural gas prospect in Austria. This significant milestone marks a pivotal step forward in commitment to responsible and sustainable large-scale natural gas development, within Europe. MCF is also pleased to advise the imminent mobilisation of the RED Drilling & Services GmbH E-202 drilling rig to the Welchau-1 rig site within the ADX-AT-II licence in Upper Austria.

Well site construction commenced on the 15th of December 2023 following receipt of the environmental clearance and is now complete. The RED drilling rig is expected to become available to ADX at the end of this week ("Rig Release"). The well will be spudded after mobilisation and rig assembly which will take approximately 7 days after Rig Release.

The success case drilling program is expected to take approximately 39 days. The completed well site at the Welchau-1 drilling location MCF Energy will fund the Welchau-1 well costs up to 50% of the cap of EUR 5.1 million to earn a 25% economic interest in the Welchau Investment Area. The Welchau gas prospect has gas resource potential, located in the heart of Europe at a relatively shallow drill depth and proximal to gas pipelines.