MCF Energy has completed the acquisition of Genexco, a Germany-based private-sector oil and gas company.
At the time of closure, MCF Energy issued Genexco shareholders 11.06 million common shares in addition to €1.25m in cash.
More than 4.91 million shares are available for issuance and €3.25m in cash is yet to be paid, of which a payment of €2.5m is subject to certain conditions.
First announced in February 2023, the deal also included the purchase of a 20% interest in an oil and gas exploration licence held by Genexco Gas.
Through this deal, Canada-based MCF Energy aims to further its growth in the German natural gas industry.
With Genexco’s acquisition, MCF Energy has secured licences for four sizable projects in northern and southern Germany.
This includes Reudnitz, a verified gas discovery located in a remote area south-east of Berlin.
In addition, the deal gives the company access to an exclusive database that contains geology, seismic, and well data for ten more project locations.
The company said that it has used this data to apply for projects that have the potential to expand its presence in the German natural gas market.
MCF Energy CEO and director James Hill said: “The successful closure of the Genexco acquisition is a major step for MCF Energy and positions us to make a positive impact on Germany’s energy needs and provide a secure and sustainable energy path for Germany and the broader region. “
Genexco co-founder Peter Eckhard Oehms said: “MCF Energy presents a perfect fit for Genexco to quickly advance and maximise the potential of our project portfolio at this crucial time for Germany’s energy security.”
Oehms will join MCF Energy as energy managing director for Germany.