Europe's Secret Weapon In Its Energy War With Russia - Seite 2
Drilling Down for German Energy Security
In Germany, where MCF's drill heads in April, the company is re-opening an oil and gas play that spans over 100 square kilometers, in the Lech and Lech East concessions.
Lech (10 square kilometers) and Lech East (100 square kilometers) concessions hold natural resources riches that have already seen two discoveries and three previous wells drilled.
In April, MCF (MCF.V; MCFNF.QX) will re-enter Mobil's former Kinsau #1 well, adapting new drilling technology and later horizontal wells to stimulate the hydrocarbons that are already known to exist. MCF Energy is targeting potentially billions of cubic feet of recoverable natural gas—and possibly more, with associated condensate.
These shallow wells, cheap to drill, from proven, previously drilled holes could translate into quick cash flow for MCF Energy. And one hit could flare out into multiple development zones for each well.
MCF's Reudnitz concession, a large-scale natural gas prospect initially discovered in 1964, is the third German asset, with MCF stating an independent assessment estimated 118.7 billion cubic feet of natural gas for extraction, noting that the resourses are similar to other gas fields in northern Germany with nitrogen also present. MCF also disclosed that the gas in Reudnitz best estimate (P50) also contains a potential for 1.06 BCF of helium and 4.4 million barrels of oil in a shallower target. Pilot test production using cryogenic technology for targeted helium and methane extraction and nitrogen sequestration is set to begin later this year.
The World's 4th-Largest Economy, In Focus
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MCF Energy has adopted a laser focus on Europe's energy security requirements, which is most significantly emphasized by Germany, the largest economy of the European Union.
Germany has seen its bill for oil and gas imports soar since Russia invaded Ukraine. U.S. LNG exports to Europe soared in 2022 and 2023.
Expensive LNG is not a sustainable energy security strategy, nor is a return to coal feasible in terms of any reasonable climate change goals. Germany has been busy building grandiose LNG terminals, and is now gunning for big natural gas-powered electric plants, but even those plans will face risk without any domestic supply.