28 July 2015farm in farm out agreement▲ GoodMajor
Vermilion signed a farm-in agreement on July 27, 2015 with Mobil Erdgas-Erdöl (held by ExxonMobil) and BEB Erdgas und Erdöl (held by ExxonMobil and Shell) for a 50% share of 19 undeveloped onshore exploration licences in northwest Germany (about 850,000 net acres). In return Vermilion will fund the other partners' remaining 50% share of 11 gross (6 net) exploration wells over five years. No production is acquired, Vermilion takes over as operator for the exploration phase on 11 licences, and closing is expected January 1, 2016 subject to approvals. This builds on its early-2014 entry into Germany; the earlier proposed GDF Suez consortium deal was never confirmed as closed in the filings seen. The release states a dividend yield of about 6%.