Vermilion farms-in to onshore Germany

Germany

BERLIN, July 28, 2015 – Canada’s Vermilion Energy has acquired a participating interest in 19 undeveloped onshore blocks in northwest Germany from Mobil Erdgas-Erdol (MEEG) and BEB Erdgas und Erdol’s (BEB). The farm-in agreement will see Vermilion pick up 50 percent of MEEG and BEB’s current interests in the blocks, in return for shouldering the entire cost of 11 exploratory wells.

MEEG is a wholly owned subsidiary of ExxonMobil, while BEB is a joint venture between ExxonMobil and fellow super-major Shell. Under the terms of the deal, Vermilion will also assume operatorship for 11 of the 19 blocks from ExxonMobil Production Deutschland. Around 75 exploratory and semi-exploratory prospects have so far been identified in the Rotliegend, Carboniferous, Triassic and Zechstein formations on the 19 blocks.

The assets cover a contiguous area of 3,440 square kilometres within the North German Basin. The basin has produced more than 2 billion barrels of oil and 963 bcm (34 tcf) of gas since discovery, amounting to 97 percent of Germany’s historical onshore output.