Our History in Germany
Vermilion initially entered Germany in 2014 through an acquisition of a non-operated interest in a four partner consortium. Germany had long been an area of interest for Vermilion given its strong regulatory framework, stable fiscal regime and established history of oil and gas production supported by extensive in-place infrastructure.
Although our entrance into the German energy industry is relatively recent, Vermilion has been operating in Western Europe since 1997 when we acquired oil producing assets in France. In addition to our operations in France, we also have and participate in operations in the Netherlands (since 2004) and Ireland (since 2009). As evidenced by our growth in the region, Western Europe has been, and will remain, a key area of focus for our company.
The following timeline details key milestones in the history of our German operations:
- Vermilion completed the €114.5 million acquisition of a 25% non-operated interest in a four-partner consortium which, in addition to Vermilion, includes Mobil Erdgas-Erdöl GmbH ("ExxonMobil"), Wintershall Holding GmbH and BEB Erdgas und Erdöl GmbH & Co. KG ("BEB"), a joint venture between ExxonMobil and Deutsche Shell AG.). The acquired interest comprised four producing gas fields spanning 11 production licenses as well as a proportionate interest in a surrounding exploration license in northwest Germany. The production and exploration licenses encompass approximately 20,000 net hectares (51,000 net acres).
- Vermilion opened an office in Schönefeld and hired additional personnel to support efforts to expand activities within the important German market.
- Participated in the drilling of the successful Deblinghausen Z7a development well which logged 81 metres of net pay in the Zechstein Carbonate and was placed on production during the fourth quarter.
- Vermilion significantly enlarged the scope of our German business opportunities through a farm-in arrangement with ExxonMobil and BEB. The farm-in provided Vermilion with participating interest in 19 onshore exploration licenses comprising approximately 345,000 undeveloped net hectares (850,000 net acres) in northwest Germany. In exchange for this interest, Vermilion committed to the financial carry of the remaining 50% of MEEG’s and BEB’s interests in 11 gross (6 net) exploration wells through 2020. Vermilion will assume operatorship for 11 of the licenses for the exploration phase.
- Participated in the drilling of the Burgmoor Z3a sidetrack well which was successfully placed on production during the third quarter.
Vermilion entered into a definitive purchase and sale agreement to acquire interests in conventional production and exploration assets in Lower Saxony from Engie E&P Deutschland GmbH. The acquisition is anticipated to close in late Q4 2016 and is subject to customary closing adjustments. The acquisition includes operated and non-operated interests in nine oil and four gas producing fields with five operated oil fields located in the districts of Osthannover and three operated gas fields in Ostfriesland. Vermilion will also obtain operated interests in the Bedekaspel exploration license and an oil pipeline network.
Im Rahmen eines Kaufvertrags mit Engie E&P Deutschland GmbH etabliert sich Vermilion neben der Aufsuchung auch in der Gewinnung von konventionellem Erdöl und Erdgas als Betriebsführer in Niedersachen. Vermilion erwarb Anteile an neun Erdöl- und vier Erdgasfeldern, von denen das Unternehmen zukünftig fünf Erdölfelder im Betriebsbereich Osthannover und drei Erdgasfelder im Betriebsbereich Ostfriesland als Betriebsführer operiert. Die operative Übernahme wird Ende des Jahres 2016 erwartet in Abhängigkeit der behördlichen Zustimmung. Vermilion erhielt in diesem Rahmen auch die Betriebsführerschaft für die Aufsuchungserlaubnis Bedekaspel und übernahm Anteile an einem Ölleitungsnetz.
- Since January 1, 2017 Vermilion has assumed operatorship of recently acquired oil and gas production licenses in eastern Hannover and East Friesland. Following the completion of this acquisition, which was originally announced in June 2016, Vermilion acquired interests in nine oil and four natural gas fields in Lower Saxony from ENGIE E&P Deutschland GmbH.
(Unless otherwise noted, references on this website to "Vermilion", or "the Company", or "we", or "our" collectively refer herein to any or all of the people and operations associated with Vermilion Energy Inc. and/or its subsidiaries including its German subsidiary Vermilion Energy Germany GmbH & Co. KG whose operations and activities are the focus of this website)