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Vermilion Energy Inc. Announces Farm-in Agreement in Germany
CALGARY , July 28, 2015 /CNW/ - Vermilion Energy Inc. ("Vermilion", the "Company", "We" ...
About this update from Vermilion Energy Inc.
[{"type":"text","content":"\n\n\nCALGARY, July 28, 2015 /CNW/ - Vermilion Energy Inc. (\"Vermilion\", the\n \"Company\", \"We\" or \"Our\") (TSX, NYSE: VET) is pleased to announce that\n we have entered into a farm-in agreement (the \"Farm-in\" or the\n \"Agreement\") with Mobil Erdgas-Erdӧl GmbH (\"MEEG\") and BEB Erdgas und\n Erdӧl GmbH & Co.KG ('BEB\"). MEEG is 100% held by ExxonMobil and BEB is\n jointly held by ExxonMobil and Royal Dutch Shell.  ExxonMobil\n Production Deutschland GmbH ('EMPG\") currently operates and manages\n both MEEG's and BEB's interests in the exploration licenses involved in\n the Farm-in. The Agreement, signed July 27th, 2015 and with an\n anticipated closing date of January 1, 2016, remains subject to\n customary conditions and regulatory approvals.\n\n\nThe Farm-in will provide Vermilion participating interest in 19 onshore\n exploration licenses in northwest Germany, comprising approximately\n 850,000 net acres of oil and gas rights (100% undeveloped) (the\n \"Assets\"). Under the terms of the Agreement, Vermilion will acquire the\n Assets (which represent 50% of MEEG's and BEB's current interests in\n these licenses) in exchange for committing to the financial carry of\n the remaining 50% of MEEG's and BEB's interests in 11 gross (6 net)\n exploratory wells over the next five years.  At present, approximately\n 75 exploratory and semi-exploratory leads and prospects have been\n identified in the Rotliegend, Carboniferous, Triassic and Zechstein\n formations on these Assets.\n\n\nEleven of the 19 licenses are currently operated by EMPG, which will\n transfer operatorship for the exploration phase to Vermilion. The\n Agreement also grants Vermilion proportional ownership to EMPG\n proprietary data spanning the Assets. No existing oil or gas production\n is being acquired by Vermilion in the Farm-in.\n\n\nThe Farm-in provides Vermilion with a very large, nearly contiguous land\n block in the heart of the North German Basin.  This basin has\n cumulative production of more than 2 billion barrels of oil and 34\n trillion cubic feet of natural gas since its discovery, representing\n approximately 97% of Germany's historical onshore production.  We\n believe that the Assets are prospective for both oil and natural gas.\n\n\nThe Farm-in follows our entry in early 2014 into the exploration and\...