MCF Energy has announced the sale of all of the company assets in the Czech Republic to Third Source Energy ("TSE"). 

This transaction includes 100 percent of MCF Energy Ltd.'s ("MCF") Czech assets comprising the company's shareholding in Orionos Energy s.r.o., its subsidiary Lomenska Tezebni s.r.o., and all associated assets, licenses, and inventory.

The total consideration for the transaction including a contingent royalty is C$6,478,000, comprised of a C$1,000,000 cash payment on completion, and a 10% gross overriding royalty ("GORR") on the portion of realized gas revenue using the Dutch Title Transfer Facility price in excess of USD $13.50 per mmbtu, applicable to future production from newly drilled wells, or deepened existing wells, on the licenses currently held by Orionos and Lomenska. The GORR is capped at US$4,000,000 (C$5,478,000). 

MCF Energy has a 'put option' for two years to sell the GORR to TSE for C$750,000. TSE has a 'call option' for two years to terminate the GORR by payment to the Company of C$1,500,000.

The transaction between the Company and TSE was completed on July 25, 2025, which also terminated the management services agreement between the Company and TSE effective June 1, 2025.

"The sale of our Czech assets will permit the Company to focus its investments and activities on our projects in Germany, including in the Lech area, where the Kinsau-1A re-entry well is expected to commence drilling in the coming few weeks," said James Hill, Chief Executive Officer of MCF Energy Ltd.

KeyFacts Energy Industry Directory: MCF Energy