Lime Petroleum AS, a subsidiary of Rex International Holding, has taken a significant step towards expanding its asset portfolio by entering into a Heads of Agreement with Genexco GmbH, a wholly-owned subsidiary of Canadian-listed MCF Energy. This agreement grants Lime the option to farm into Genexco's 100% interest in the Reudnitz gas exploration licence, located approximately 70 kilometres southeast of Berlin.
The Reudnitz gas field, discovered in 1964, boasts multi-zone hydrocarbon potential. An independent resource evaluation conducted by GCA Associates has estimated the field's resources to exceed 118 billion cubic feet (BCF) of methane and over 1 BCF of helium, highlighting its promising prospects.
Genexco is set to carry out a work-over of well RZ2 in Reudnitz in the fourth quarter of 2024. This operation will involve installing a velocity string, performing an acid job, and conducting a well test. Concurrently, Genexco plans to apply for a production licence for the proven area within the Reudnitz field, as established by the forthcoming work-over and prior discoveries.
Under the terms of the agreement, Lime has the option to acquire a working interest of up to 80% in both the Reudnitz licence and the associated production licence. Should Lime choose to exercise this option, it would assume the role of operator for the Reudnitz Production Licence. However, the company is not obligated to take on operatorship; if it decides against it, Genexco will continue to manage operations.
John d’Abo, Executive Chairman of Rex International Holding, remarked on the significance of this agreement, stating, “Rex International Holding and its subsidiaries, including Lime, have been actively exploring opportunities to enhance the Group’s asset base both within our current jurisdictions and beyond. This Heads of Agreement represents an extension of those efforts.”
The Group will keep the market informed of any material developments as they arise, reflecting its commitment to transparency and growth.