Vermilion Energy Enters Farm-in Agreement in Germany
Vermilion Energy announced Tuesday that it has entered into a farm-in agreement with Mobil Erdgas-Erdӧl (MEEG) and BEB Erdgas und Erdӧl (BEB).
The agreement will provide Vermilion a participating interest in 19 onshore exploration licenses in northwest Germany, comprising approximately 850,000 net acres. Vermilion will acquire the assets in exchange for committing to fund the remaining 50 percent of MEEG's and BEB's interests in 11 exploratory wells over the next five years.
MEEG is 100 percent held by ExxonMobil and BEB is jointly held by ExxonMobil and Royal Dutch Shell. ExxonMobil Production Deutschland (EMPG) currently operates 11 of the 19 licenses involved in the agreement. If the deal, which remains subject to customary conditions and regulatory approvals, is completed, EMPG which will transfer operatorship for the exploration phase to Vermilion.
Commenting on the farm-in agreement, a Vermilion Energy press release stated:
“The Farm-in provides Vermilion with a very large, nearly contiguous land block in the heart of the North German Basin. This basin has cumulative production of more than 2 billion barrels of oil and 34 trillion cubic feet of natural gas since its discovery, representing approximately 97 percent of Germany's historical onshore production. We believe that the Assets are prospective for both oil and natural gas.”
The farm-in agreement was signed on July 27th, 2015 and has an anticipated closing date of January 1, 2016, according to Vermilion.
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