Categories: General Market Commentary
Topics: General Market Commentary

Putting the Squeeze on Putin’s Gas

MCF Energy Ltd. (TSX-V: MCF)(OTC: MCFNF) — currently trading around C$0.65 per share — is focused on acquiring and developing natural gas assets in Austria and Germany as a means of strengthening Europe’s energy security while providing critical resources for the region’s energy transition.

MCF is the first new public venture focused on actively consolidating large-scale gas prospects in Europe since Russia’s invasion of Ukraine. 

Following Putin’s aggression, Europe has come to the stark realization that Russia, which historically supplied around 40% of natural gas requirements to the region, is no longer a reliable source nor a trusted energy partner. 

In response, the MCF Energy team — whose leadership co-founded Bankers Petroleum which achieved a peak market capitalization of over US$2.25 billion — has hit the ground running with the acquisition of interests in two co-flagship natural gas projects; one in Austria and the other in Germany. 

In Austria, MCF can earn up to a 40% interest in the Welchau natural gas prospect, which is situated in the underexplored foothills region of the Austrian Alps.

A discovery well was drilled there in the late 1980s, which intersected a 400 meter gas column that flowed at 3.5 million cubic feet per day but was ultimately abandoned due to low natural gas prices at the time. Plans are now in place to spud the first new well at Welchau this coming summer. 

In Germany, MCF has entered into a joint development agreement with German energy company Genexco on the Reudnitz natural gas prospect — a large confirmed gas accumulation established by three previously drilled wells.

MCF — which expects to earn-in up to 50% of the Reudnitz prospect — has entered into a non-binding letter of intent to acquire Genexco, which, in addition to Reudnitz, has a significant portfolio of hydrocarbon prospects in Germany at various stages of development.

Pursuant to the LOI, the experienced leadership team of Genexco will become the German management team of MCF Energy, providing the company with valuable in-house German operating expertise.

MCF Energy CEO James Hill — whom you’re about to hear from directly in our exclusive interview coming right up — commented via press release:  

“With the Acquisition of Genexco, we're positioning ourselves for success in Germany and taking a major step forward in our mission to ensure Europe’s energy security through large-scale natural gas exploration.”

MCF is led by a group of highly experienced oil and gas industry professionals who understand that the most effective way for Europe to get out of its current energy crisis is to develop the massive energy resources that lie within its own borders. 

To that end, the aforementioned James Hill, CEO, leads MCF Energy as the former vice president of exploration for both Bankers Petroleum and BNK Petroleum. Jay Park, who serves as executive chairman, has advised governments and leading energy companies on asset deals globally for more than four decades. 

The company’s distinguished advisory board includes Ford Nicholson, who cofounded Bankers Petroleum, and geologist/geophysicist Deborah Sacrey whose expertise in 2D and 3D seismic interpretation has resulted in multiple discoveries of significance over her 45-year industry career.

With the team, the mission, and the initial prospects in play, MCF Energy has been equally successful in attracting a growing list of deep-pocketed investors, including well-known mining financier and philanthropist Frank Giustra. 

Mr. Giustra and his related entities have come onboard as a key financier of the company with an ownership stake of 18.9 million MCF shares or around 10% of the company’s outstanding shares. 

With powerful backing and an equally strong sprint out of the gate, our own Gerardo Del Real of Junior Resource Monthly took the opportunity to sit down with MCF Energy CEO James Hill for a comprehensive overview of the company’s mission and its initial natural gas prospects in Austria and Germany. Please enjoy!

Mike Fagan
Editor, Resource Stock Digest