This Could Be The Most Exciting Natural Gas Play in Europe - Seite 2

MCF Energy (MCF.V; MCFNF.PK) also has licenses secured in Germany for six large-scale project areas in the country, with the Company stating that drill testing set to launch immediately after the Austrian drill is aimed to be completed.

These key projects are the result of MCF Energy's strategic 100% acquisition of Germany's Genexco GmbH. Genexco was established in 2014 by some of Europe's largest energy producer insiders. It carefully assembled a portfolio of assets when few others were paying attention.

The Genexco acquisition gave MCF Energy four key assets that include previously drilled wells and two discoveries, including Reudnitz, a proven, large-scale natural gas development that also contains an oil exploration target. They also acquired the Lech concession, a 10-square-kilometer play with three previously drilled wells and two discoveries; Lech East, which directly offsets the discoveries on the Lech block is much larger,  around 100 square kilometers; and the Erlenwiese concession in the Rhein Graben which covers about 80 square kilometers.

Some 70 km southeast of Berlin, it was initially discovered in 1964 with multi-zone hydrocarbon potential and proven phases of Helium, methane and like most fields in northern Germany high nitrogen content . 

According to the company, pilot test production will start this year.  After testing, development is planned using cryogenic technology for helium and nitrogen sequestration. The Company announced an independent assessment best estimate (P50) at 118.7 billion cubic feet (BCF) of methane, 1.06 BCF of helium and 4.4 million barrels of oil. 

The Kinsau #1 well, originally drilled by Mobil in the '80s, encountered a primary gas reservoir with associated condensate. In a recent interview with Oilprice.com, James Hill said they abandoned the well because "back then, it probably wasn't economic."

MCF (MCF.V; MCFNF.PK) has spent a significant amount of time analyzing the cores from these wells, and Hill isn't just eyeing recoverable gas with associated condensates; he's also eyeing an oil zone, noting that in the '80s, using only a vertical well, as the technology of the day afforded, this well produced almost 200 bpd. MCF is studying going back in and recreating this with a horizontal well to stimulate a zone that they know contains hydrocarbons already.