MCF Energy Ltd. announced the successful acquisition of a substantial natural gas exploration concession spanning approximately 100 km(2) in Southwest Bavaria, Germany, granted by the Bavarian State Ministry of Economic Affairs, Regional Development and Energy for an initial term of three years. Lech East is adjacent to another 10 km(2) concession. In a previously drilled well at Lech, a remarkable flow test rate of over 20 million cubic feet per day of gas was recorded.

MCF Energy's subsidiary, Genexco GmbH, holds a 20% carried interest at Lech and plans to start drilling an offset development well in Fall 2023. The Company considers Lech (20% to MCF Energy) and Lech East (100% to MCF Energy) as key prospects for Germany's energy security. Highlights: Lech East, a 100 km(2) natural gas exploration concession in Bavaria, Germany, has been granted to wholly owned subsidiary of MCF Energy.

Modern 3D seismic interpretation, aided by machine learning and AI, has yielded promising prospects, offsetting significant historical gas and oil discoveries. Over 20 million square feet per day of gas was tested at the Kinsau #1 well at Lech in 1983; MCF Energy is fully carried for a 20% stake up to EUR 5 million in a well at Lech to be drilled later this year. Lech and Lech East benefit from excellent accessibility and infrastructure.

MCF Energy plans EUR 4.6 million exploration program at Lech East, including well drilling. In 19, M Mobil drilled the Kinsau # 1 well to a depth of 3940 metres, where it encountered basement rocks. Gas and condensate indications were found within the Jurassic Purbeck Formation at 3,179 metres.

The well was completed by stimulating it with acid and tested over a 22.5-metre perforated interval. The entire well test took 3.5 months to complete. A variable rate test was conducted on July 28th to 29th, with three flowing rates reported: 7,712 thousand cubic feet per day (MCFD) at 2,973 psi, 14,832 MCFD at 2,785 psi, and 24,706 MCFD at 1871 psi.

The total test pressure dropped from 4,110 psi to 4,090 psi (283.4 to 282 bar). The test resulted in a recovery of 45.9 million cubic feet (MMCF) of gas and 1,510 barrels of condensate. These test results are not necessarily indicative of long-term performance or of ultimate recovery.

MCF Energy has obtained proprietary 3D Seismic coverage over Lech and Lech East. The Company's interpretation of this data, aided by machine learning and artificial intelligence analysis, has led to the identification and evaluation of several promising prospects with multiple potentially productive zones. Several prospects are offsetting or on trend with historical wells that yielded significant gas discoveries which would be highly commercial including an impressive flow test rate of over 20000 cubic feet per day of gas.

Situated approximately 55 km southwest of Munich in a rural region, Lech and Lech East enjoy excellent surface accessibility and infrastructure, including convenient proximity to pipelines. As part of its commitment, MCF Energy will undertake a staged exploration work program at Lech East, culminating in the drilling of a well by 2026 or sooner. The three-year budget for Lech East is EUR 4.6 million, including well drilling.