MCF Energy Ltd. provided a further update on its Austrian operations, specifically regarding the final steps in the well permitting and planned timing of drilling at the large Welchau anticline, which remains anticipated in fourth quarter 2023. Highlights: A drilling permit has been received for the Welchau-1 well from the Mining Authority on behalf of the ministry of finance of the Republic of Austria (Bundesministerium für Finanzen) (BMF) as announced on the 23rd of August 2023. The operator expects to receive its final permit which is an environmental clearance from the Department of Nature Protection of the State Government of Upper Austria on or before the 30 October, 2023.

The environmental clearance is the last regulatory requirement to commence operations on the Welchau drilling project. Upon receipt of the environmental clearance the operator will commence drill site construction and plans to commence Welchau drilling operations in fourth quarter. The Welchau geologic structure is mapped as covering over 100 square km in size and could contain significant reserves of gas and condensate.

The Welchau gas prospect has exceptional gas resource potential, located in the heart of Europe at a relatively shallow drill depth and approximately 18 km to gas pipelines. Welchau is targeting the same reservoirs as the nearby Molln-1 well which tested gas in 1989. The operator has advised MCF Energy that due to delays in approvals for permitting the well for drilling, they have not met an investment obligation agreed by the parties to commence drilling of the Welchau 1 well on or before the 30th of September 2023.

MCF has agreed to extend the commencement date for drilling to on or before calendar year end 2023, in good faith.