MCF Energy Ltd. announced a progress update on the drilling of the Welchau-1 gas exploration well in Austria. The well successfully reached a depth of 1,155 metres on March 10, advancing approximately 4 days ahead of its scheduled timeline. Minor hydrocarbon shows and fracturing patterns suggest the presence of hydrocarbons in deeper formations, and are evidence of an active petroleum system at the Welchau-1 well location.

It targets reservoirs analogous to those discovered by the nearby Molln-1 well, which confirmed gas presence in 1989. 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. Drilling operations commenced with a 12 1/4 inch bore to a depth of 930 metres, followed by the deployment of wireline logging tools.

Subsequently, a 9 5/8 inch casing was installed and cemented to ensure well integrity, particularly through a shale section which will also provide a seal for gas pressure from a deeper underlying reservoir. Currently, drilling proceeds in an 8 1/2 inch bore aiming for a projected total depth of at least 1,500 metres. Enhanced drilling speeds, surpassing initial projections due to the adoption of new drilling technologies, have contributed to the project's ahead-of-schedule status.

These improvements are anticipated to lower overall well costs. The image log has identified the presence of fractures and confirms a closed, asymmetric anticline as predicted in the geologic model.