By Adriano Marchese

MCF Energy Ltd. said Monday that it would acquire Germany-based Genexco GmbH and licenses to Genexco's natural gas prospects for 8 million euros ($8.7 million) in cash and stock.

The Canadian natural gas company said it would pay EUR5 million in shares and EUR3 million in cash for the acquisition. MCF Energy's shares closed Friday at 38 Canadian cents (28.4 U.S. cents).

The acquisition is expected to position MCF Energy in the natural gas exploration space in Germany and bring into the fold a portfolio and expert team with German operating experience, the company said.

Genexco said it holds two natural gas prospects; a database of geological, seismic and well data for an additional 10 project areas; and a number of exploration and production license applications in the approval process.

"We're positioning ourselves for success in Germany and taking a major step forward in our mission to ensure Europe's energy security through large-scale natural gas exploration," MCF Energy President and Director James Hill said.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

January 23, 2023 08:29 ET (13:29 GMT)

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