• Fri. Apr 19th, 2024

MCF Energy: An EU Execution Story To Be Aware Of

Earlier this year, we highlighted MCF Energy Ltd. (TSXV: MCF) (FRA: DC6) (OTCPK: MCFNF) as a company that could be a big winner in Europe’s energy crisis.

MCF Energy Ltd. (TSXV: MCF) is executing on a strategy to gain a first-mover advantage in the European Union (EU) natural gas market. We believe the company is well positioned to benefit from Europe’s high gas prices and the energy transition plan supported by the EU parliament.

The ongoing war in Ukraine has exposed a severe vulnerability in Europe’s energy market. The continent has scrambled to provide alternative sources of Russian gas, urged rationing, and has even increased its mining of coal to address shortfalls. We are favorable on MCF Energy’s strategy to acquire valuable and scalable natural gas assets in the EU and believe the business has significant upside potential. 

An Execution Story to be Aware Of

In late February, MCF Energy reported two major developments and we want our readers to be aware of these. First, the company expanded its acquisition of German oil and gas interests through its purchase of all the outstanding shares of Genexco GmbH, a private German oil and gas company. Second, MCF Energy announced a $12 million non-brokered financing to fund its initial obligations under the Genexco Agreement and for general working capital.

We consider these announcements to significant due to the expanded acquisition including additional interests that are held by a German company affiliated with Genexco and to the amount of capital that is being raised from the leadership team. 

Several members of the leadership team account for $4 million of the capital that is being raised. When the private placement was first announced, the company planned to raise $8 million. Due to the increased interest from investors, MCF increased the size of the private placement and we consider this to be a testament to the strength of the deal. 

As part of the expanded acquisition, MCF Energy has been granted a 20% interest in a prospective additional German oil and gas exploration license, where a well is scheduled to be drilled in the second half of the year. The location of the well is adjacent to a previous site that has tested quantities of natural gas that would be commercial at current prices. We consider the transaction to be strategic for the company and are bullish on the potential value that is associated with it. 

An Undervalued Growth Story 

We believe the strength of MCF Energy’s management team is a core pillar of the story and are favorable on the direction they are bringing the business. The founders and leaders of MCF Energy have a strong background in European energy and capital markets. They successfully increased production at Europe’s largest heavy oil field by 4000% with Bankers Petroleum, and managed Europe’s largest oil and gas exploration in six countries with BNK Petroleum.

Another important aspect of the leadership team is related to the type of investors that are associated with the business. MCF Energy also has a notable cornerstone investor, Frank Giustra, founder and former CEO of Lionsgate Entertainment and co-founder of Wheaton River Minerals (now Newmont Goldcorp) and we are favorable on his involvement with the firm.

Over the next year, we expect more investors to become aware of MCF Energy as the company continues to deliver on its milestones. We are of the opinion the market is discounting the growth prosects that are associated with the story and believe the company has substantial potential catalysts.  

The company’s recent acquisitions of large-scale natural gas exploration assets and its strong management team positions it well for growth in the European energy market. The EU’s mission for energy independence aligns with the company’s goals and we believe MCF Energy is well-positioned to capitalize on this trend.

Company Relationship Disclosure

OTB is responsible for the OTB opinions provided in this disclosure except all sources or information provided by other parties were not verified or authenticated and OTB does not undertake to confirm or substantiate or be responsible for such information provided by other parties.

Any Content posted regarding a Profiled Issuer is not a solicitation or recommendation to buy, sell or hold securities. We cannot and do not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. All information should be independently verified. We are not responsible for errors or omissions in our publications, and any opinions expressed are subject to change, without notice. We do not, nor are we under any obligation to undertake due diligence or investigation or authenticate and verify whatsoever regarding Profiled Issuers or any Content posted in relation thereto and we do not receive any verification from the Profiled Issuer regarding the Content we disseminate. Similarly, while we endeavor to facilitate the provision of quality information, we are not responsible for any loss or damages caused or alleged to have been caused by its use nor verify or authenticate or update such information.

Pursuant to an agreement between Spotlight Media and MCF Energy Ltd. we have been hired for a period of 180 days beginning January 11, 2023 and ending July 11, 2023 to publicly disseminate information about MCF Energy Ltd. including on the Website and other media including Facebook and Twitter. We are being paid $3,000 per month by MCF Energy Ltd. and were paid “ZERO” shares of unrestricted or restricted common shares. We plan to sell the “ZERO” shares of MCF Energy Ltd. that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of MCF Energy Ltd. in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.

This article contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs regarding future performance are “forward-looking statements”. Forward-looking statements can be identified by the use of words such as “expects”, “does not expect”, “is expected”, “believes”, “intends”, “anticipates”, “does not anticipate”, “believes” or variations of these words, expressions or statements, that certain actions, events or results “may”, “could”, “would”, “might” or “will be” taken, will occur or will be realized. Such forward-looking statements involve risks, uncertainties and other known and unknown factors that could cause actual results, events or developments to differ materially from the results, events or developments expected and expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, dependence on obtaining and maintaining regulatory approvals, including the acquisition and renewal of federal, provincial, state, municipal, local or other licenses, and any inability to obtain all necessary government authorizations, licenses and permits to operate and expand the Company’s facilities; regulatory or policy changes such as changes in applicable laws and regulations, including federal, state and provincial legalization, due to fluctuations in public opinion, industry perception of integrative mental health, including the use of psychedelic-assisted therapy, delays or inefficiencies or any other reason; any other factor or development likely to hamper the growth of the market; the Company’s limited operating and profitability track record; dependence on management; the Company’s need for additional financing and the effects of financial market conditions and other factors on the availability of capital; competition, including that of more established and better funded competitors; the impact of the Russia-Ukraine conflict on the global economy; the continued impact of the COVID-19 pandemic; and the need to build and maintain alliances and partnerships, including with research and development companies, customers and suppliers. These factors should be carefully considered, and readers are cautioned not to place undue reliance on forward-looking statements. Despite the Company’s efforts to identify the main risk factors that could cause actual measures, events or results to differ materially from those described in forward-looking statements, other risk factors may cause measures, events or developments to materially differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. The Company does not undertake to revise forward-looking statements, even if new information becomes available as a result of future events, new facts or any other reason, except as required by applicable laws

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