In the coming months, Europe’s energy crisis may take a dramatic turn.
As Europe realizes the full risk of relying on foreign oil and gas, it could soon find relief coming from an unexpected source.
That’s because, after years of leaning on cheap Russian gas, geopolitical shifts have changed the equation.
Both the war in Ukraine and simple economics have forced the EU to pivot from strict green energy policies.
The Wall Street Journal reports, “Europe cuts addiction to Russian oil.”
And The Washington Post announced recently, “Amid energy crisis, EU says gas can sometimes be ‘green.'”
The message is clear: Europe is scrambling to diversify its energy sources and achieve true energy independence.
That’s unlocked a golden opportunity with Europe’s greatest asset: its vast, untapped natural gas reserves.
For decades, prime targets for natural gas have gone completely overlooked.
That’s why one Canadian energy company, MCF Energy (TSXV:MCF; OTC:MCFNF), is on a mission to help secure Europe’s energy independence and explore these long-ignored assets.
And with the acquisition of a proven target in Germany, the landscape could shift dramatically in the coming months.
MCF Energy Targets Overlooked Natural Gas Reserves in Germany
MCF Energy announced several major new acquisitions in Germany. The company has secured rights to four key assets to date.
The company is specifically targeting its concession at Lech, which spans about 10 square kilometers in Bavaria.
That’s because the property holds 3 wells already drilled decades ago, with two confirming discoveries of natural gas.
In the early 1980s, Mobil Oil began drilling in search of oil at the property and discovered a primary gas reservoir.
At the time, testing showed a maximum flow rate of 24 million cubic feet per day (MMCFD) of natural gas with associated condensate.
Thanks to low natural gas prices at the time, however, those assets have been left virtually untouched for over 40 years.
As CEO James Hill stated, “I think from a risk perspective, you’re not going to miss this one. I think there’s a 99% chance because it’s there.”
Now, with 3D imaging and proprietary AI and machine learning technology, MCF Energy (TSXV:MCF; OTC:MCFNF), plans to pinpoint even more promising locations at the property.
Specifically, they’ll use this data to target more high-value prospects on their Lech East site, which adds another 100 square kilometers.
Based on the imaging, the team has already keyed in on multiple locations, with potentially more to come once drilling commences in Q1.
By leveraging the millions of dollars that Mobil Oil spent on this 3D seismic imaging, MCF Energy could soon play a key role in helping wean Europe off its addiction to Russian gas.
Industry Trailblazers Primed to Capitalize on Europe’s Overlooked Potential
MCF Energy is led by CEO James Hill, a seasoned geologist with over 40 years of experience exploring and developing assets across North America and Europe.
Among Mr. Hill’s long list of projects is one of the largest onshore oi fields ever found in Europe, at the Patos Marinza Oil Field in Albania where production was increased over 2000%.
After a successful career, Hill had retired. But because of the size of the opportunity at hand, his retirement was short-lived.
With Russia’s invasion and the EU’s pivot to classify natural gas as “green energy,” Hill and his team are uniquely positioned to tap into Europe’s vast, overlooked oil and gas reserves. In 2022, they began six months of due diligence, conducted on 20 assets.
Since then, MCF Energy has acquired rights to Europe’s most high-priority and high-conviction locations.
That includes the four assets in Germany through the strategic acquisition of a private German company, Genexco.
The move gives MCF Energy not just the proven assets drilled by Mobil decades ago.
It also provides a team of experts with inside knowledge of both the terrain and how to navigate complex zoning and licensing processes in Europe.
These early wins will now help de-risk MCF Energy’s portfolio while also accelerating its timeline.
With drilling set to commence in April at their Lech concession, pipelines are located less than 2 km away to bring energy throughout Europe.
That makes transportation significantly easier and more economical for MCF (TSXV:MCF; OTC:MCFNF) if they discover the volumes of natural gas that they expect, given the past results and 3D data.
Better still, the pipeline company has even offered to connect for free if they dedicate supplies, which would help boost cash flow even further.
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MCF Energy’s leadership has been vocal about their confidence in a major discovery in Germany due to Mobil’s past work there.
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