The answer to Europe’s energy security is right beneath the surface, according to James Hill
I fell in love with geology in college and started working in the field in 1971,” begins James Hill, CEO of MCF Energy Ltd. “I was working for the US Geological Survey as a technician when I obtained the title of geologist in 1977 and transferred to Chevron to their western region exploration group, working mainly in Alaska and California. I worked with them for almost ten years, had a wonderful time and went through several training programs. I then decided to go it alone in 1986 to create my own company. While it wasn’t the best time to start a business, I went ahead and did consulting work for companies that developed drilling projects. Eventually, we merged with a publicly traded business called Tartan Energy and got involved in raising capital. As time went on, we made a major oil and gas discovery with the help of another organization, which eventually acquired us.”
James went on to work as Vice President of Exploration for Bankers Petroleum for several years, which is still based and drilling in Albania. When the US branch broke away from Albanian exploration, it became BNK Petroleum and James continued to be based in the States but began exploring options in Europe to secure projects and financing.
“It was around 2008 that I started to familiarize myself with the European landscape but following several permitting disruptions and changes to the law, particularly in Poland, BNK Petroleum decided to revert to focusing on the States and I decided to retire in 2012. After several years of enjoying my retirement, I got a call from the investor groups in Canada that funded my last three companies at around the time of Russia’s invasion into Ukraine.
“Knowing as much as I do about Europe and the opportunities that have always been there, it’s been frustrating for me not to be able to go after them. Many resources just haven’t been exploited because the Russians always kept gas prices down to a level where it didn’t make much sense to compete. At this time, however, I knew that the contribution I could make to the energy security of Europe was important. So, I came out of retirement, formed MCF Energy along with several other high-powered energy leaders, and started exploring those areas where I knew there were opportunities,” he elaborates.
MCF Energy was founded to strengthen Europe’s energy security and provide critical resources for the energy transition. The company’s vision is to leverage its expertise and capital to build a dominant new clean oil and gas company in Europe and deliver value for all stakeholders.
European exploration
The company is hunting massive natural gas exploration targets for European markets and has already established a dominant position in Germany’s natural gas exploration sector, as well as a significant Austrian project.
“One of the most important projects right now is in Austria. We partnered with a company called ADX and drilled Welchau 1 in the Austrian Alps. This is a large geological structure and is 20 kilometers long, covering 100 square kilometers. We’re going to start testing in the next few weeks [at time of writing and as per a recent press release], but we’re very excited about this project as there hasn’t been anything this big found in a long time.
“Another important project is in Reudnitz in Germany. It was discovered in the 1960s but because of gas prices, it had never been developed, but there’s 118 billion cubic feet of natural gas there. A GCA report shows also over a billion cubic feet of helium present, which is an important industrial gas, and we’ve just completed testing of one of the wells and I’m very pleased with the results.”
MCF also successfully completed the acquisition of a substantial natural gas exploration concession in Lech East, spanning approximately 100 square kilometers in Southwest Bavaria, Germany, granted by the Bavarian State Ministry of Economic Affairs, Regional Development, and Energy for an initial term of three years. Lech East is adjacent to another 6.2-kilometer-square concession, Lech. Modern 3D seismic interpretation, aided by machine learning and AI, has yielded promising prospects, offsetting significant historical gas and oil discoveries. MCF plans a EUR 4.6 million exploration program at Lech East, including well drilling.
The acquisition of Genexco GmbH positions MCF as a future leader in natural gas exploration in Germany, with operatorship of its projects, and an expert in-country team. It has 100-percent ownership of four licenses at German natural gas exploration and development projects, including Reudnitz, as well as a proprietary database for ten additional project areas including geological, seismic and well data.
“Natural gas,” James continues, “has been recognized by the European Union as green and as a transition fuel to a carbon free world. When you consider renewables, it’s going to take decades and trillions of euros to make that conversion, and in the meantime, when the wind doesn’t blow and the sun doesn’t shine, there needs to be a backup resource and natural gas is the ideal option because it’s the cleanest burning.
“The US has indigenous gas so the price of natural gas there is about four or five times less than in Europe. This has a massive impact, not just on residential areas but also industry. There are many German industrial organizations currently considering moving out of the country because of the unstable power regime and the war in Ukraine, resulting in a reluctance to rely on Russian gas again.”
Supporting energy transition
One way in which MCF is exploiting the latest technology to discover reserves for enhanced European energy security is by means of 3D seismic surveying. Seismic surveys result in detailed images of subsurface rock layers and can provide crucial information. This process involves emitting acoustic waves, recording their reflections and measuring their characteristics. Through this technology, oil and gas companies gain valuable insights into potential reserves.
“We try and engage stakeholders,” James continues. “We always talk to local communities, have town hall meetings, and speak to people about what we’re doing and answer their questions. The best way to alleviate people’s concerns is by giving them answers. We also sample the water around our drill sites to demonstrate that the water quality hasn’t been negatively impacted by our operations. We want to show people that we are good neighbors and want to contribute positively to their communities for a long time.
“Europe has been drunk on Russian gas for decades, and there are so many opportunities to exploit resources within the countries’ own borders to create a more stable supply. As such, we’re going to continue exploration in Germany, by utilizing single drill sites to explore multiple areas through directional drilling. As we grow and develop the business and its cashflow, we’ll be able to exploit increasingly greater opportunities.
“We’re also pragmatic. Developing the infrastructure to support the transition to renewables is going to take decades. To support people’s daily lives and keep industry turning during the transition, ten percent of natural gas goes towards generating petrochemicals. We’re supportive of the energy transition and want to be a part of it,” James concludes. “The answer to Europe’s energy security is right beneath the surface. Through responsible exploration and development of natural gas resources within the European regions, we are working to develop a cleaner, cheaper, and more secure natural gas industry as a transition to renewable energy sources.”