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.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Gunvor CEO Sees Russian Refining Capacity Taking Hit from Drone Strikes
- These Factors Helped Brent Oil Price Break Above $85
- Sinopec Engineering Posts Higher Annual Petrochemicals Revenue
- Imperial Pipeline in Winnipeg Goes Offline for Three Months
- Gaz System to Acquire Gas Storage Poland
- Subsea7 Secures Contract to Service Woodside's Trion
- Adnoc Inks Supply Deal for Ruwais LNG Project with Germany's SEFE
- EIA Boosts USA Crude Oil Production Forecasts
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension