Vermilion Energy farms into German acreage
Vermillion Energy Inc. has signed a farm-in agreement providing access to a nearly contiguous land block in the North German basin.
Vermilion Energy Inc. has signed a farm-in agreement providing access to a nearly contiguous land block in the North German basin.
The agreement gives the operator participating interest in 19 onshore exploration licenses in northwest Germany, comprising 850,000 net acres of undeveloped oil and gas rights.
The company has committed to the financial carry of the remaining 50% of Mobil Erdgas-Erdol GMBH’s (MEEG) and BEB Erdgas & Erdol GMBH & Co. KG’s (BEB’s) current interests in these licenses. MEEG is 100% held by ExxonMobil Corp. and BEB is jointly held by ExxonMobil and Royal Dutch Shell PLC. ExxonMobil Production Deutschland GMBH currently operates and manages both MEEG’s and BEB’s interests in the exploration licenses involved in the farmin.
The agreement is expected to close Jan. 1, 2016. At present, the company has identified 75 exploration leads in the Rotliegend, Carboniferous, Triassic, and Zechstein formations.
The North German basin has cumulative production of more than 2 billion bbl of oil and 34 tcf of gas since its discovery. It represents 97% of Germany’s historical onshore production.