MCF Energy (currently Pinedale Energy) to Acquire Large-Scale Austrian and German Hydrocarbon Assets; Focused on Delivering Domestic Natural Gas for Europe’s Energy Security
MCF Energy (currently Pinedale Energy) to Acquire Large-Scale Austrian and German Hydrocarbon Assets; Focused on Delivering Domestic Natural Gas for Europe’s Energy Security
Highlights:
- MCF Energy acquires European energy interests, including giant Welchau prospect in Austria to be spudded before Sept 2023; German prospect within a proven gas field
- Incoming MCF Energy leadership co-founded Europe focused Bankers Petroleum, which grew oil production by 2000% and achieved a peak market capitalization over $2.25 billion, as well as BNK Petroleum, formerly Europe’s largest subsurface landholder of oil and gas leases
- $8.5 million private placement proposed fully subscribed with commitments from incoming management, insiders and institutions
Vancouver, British Columbia, November 29, 2022 – Pinedale Energy Limited (TSXV – MCF.H) (“MCF” or the “Company”) (being renamed MCF Energy Ltd.) is pleased to announce that on November 29, 2022, it has entered into an assignment agreement and exclusive partnership with Kepis & Pobe Financial Group Inc. (“KPFG”), a leader in energy finance and development, to establish MCF as an active explorer and developer of new natural gas discoveries in Western Europe. Today’s announcement provides MCF with significant hydrocarbon exploration assets in constrained markets, an accomplished leadership team with deep expertise in Europe, and initial capital to fund its commitments.
“MCF Energy was founded to strengthen Europe’s energy security and provide critical resources for the energy transition,” commented James Hill, incoming CEO. “Our vision is to leverage our expertise and capital to build the dominant new clean oil and gas company in Europe and deliver value for all stakeholders.”
“Our group began seriously evaluating opportunities early this year,” commented Jay Park KC, incoming Executive Chairman. “We found the landscape starved for capital and in need of fresh ideas. A comprehensive due diligence was conducted on more than 20 assets. Farm-in agreements were negotiated on the two highest priority projects.”
“Never before has Europe so badly needed domestic energy,” commented Ford Nicholson, incoming advisor to MCF Energy. “The race for high-quality energy assets in Europe is on, and MCF has secured significant gas potential in some of Europe’s safest jurisdictions.”
Assets:
KPFG has agreed to assign to the Company (the “Assignment”) its rights under two Joint Development Agreements covering projects in Germany and Austria. The first of these Joint Development Agreements (the “ADX Agreement”) is with ADX VIE GmbH (“ADX”) in respect of ADX’s Welchau Well and the Welchau Area in Austria where MCF Energy can earn up to a 40% interest.
The Welchau gas prospect is located in the foothills of the Austrian Alps and is analogous to the large anticline structures discovered in Kurdistan and the Italian Apennines. Welchau has a relatively shallow target of approximately 1220 m True Vertical Depth, with a projected Total Depth of 1700 meters to evaluate all the potentially productive zones. The well is located with road access to the planned drilling location and a short tie-in distance to the national gas pipeline network of approximately 18 km.
Welchau is located up-dip from a gas discovery (Molln-1 well) drilled in 1989 which intersected a greater than 400 m gas column, with 900 meters interpreted from pressure data. The well tested condensate rich, pipeline quality gas (maximum flowrate of 3.5 mmcfpd with 40 barrels of condensate per mmcf) (refer to Figure 2).
The main target at Welchau, as well as the productive Molln 1 well, is the Triassic Steinalm Formation, a fractured carbonate reservoir trapped in a trending ramp anticline with more than 20 km lateral extent and 100 km2 maximum closure area. The structure is defined by extensive outcrop mapping and balanced 2D cross sections along a profile parallel to the North-South shortening direction.
Pursuant to the ADX Agreement, KPFG will fund up to 50% of the exploration drilling costs for the Welchau Well to a vertical depth needed to test the target Triassic limestone. The estimated exploration drill costs of the Welchau Well are EUR 3.81 million. Upon paying a 50% share of the costs KPFG will earn a 50% share of cost hydrocarbons and a 20% share of profit hydrocarbons, as defined in the ADX Agreement. Following payment of its initial 50% share, KPFG will thereafter be required to fund its profit hydrocarbon interest of the Welchau Well costs until the well is evaluated, cased and suspended, or completed, tested and tied in to production facilities. In addition, ADX has agreed to provide KPFG with an option, exercisable until January 21, 2023, whereby KPFG may elect to increase its participation interest in the Welchau Well and the Welchau Area to 100% of the cost hydrocarbons and a 40% share of the profit hydrocarbons by funding 100% of the exploration drill costs. In consideration for the grant of the Option, KPFG has agreed to pay a fee of EUR 100,000 to ADX within 10 days of entering into the Joint Development Agreement, which fee will be offset against its obligation to fund the Welchau Well long lead items if the Option is exercised. It is anticipated that the Welchau Well will be spudded on or before September 30, 2023.
PINEDALE ENERGY LIMITED
SUITE 3123 – 595 BURRARD STREET
VANCOUVER, BC V7X 1J1
Tel: 604-609-6110
