About Vermilion

About Vermilion

Vermilion Energy Inc. (referred to herein as "Vermilion" or "VEI") is a Calgary, Alberta based international oil and gas producer celebrating 17 years of outstanding performance. Daily production in the third quarter of 2011 was 34,676 boe/d comprised of 21,834 barrels per day of mostly light sweet crude oil and 77.1 million cubic feet of natural gas from properties in Western Canada, Australia, France and the Netherlands. Vermilion operates over 90% of its properties supported by an outstanding team of dedicated professionals.

Vermilion is targeting production growth to approximately 50,000 boe/d in 2015 (approximately 40%) and intends to maintain the current dividend of $0.19 CDN per month, providing shareholders with an attractive high yield investment.  Together with strong growth and steady dividends, investors are also exposed to a growing portfolio of potential resource play exposure.

Vermilion's long history of value creation dates back to 1994 when it was launched as a junior exploration and production company. The company converted to the energy trust structure in 2003 and began distributing a portion of its cash flow to investors.  Effective September 1, 2010, Vermilion converted back to a dividend paying corporation, maintaining the same monthly payment in the form of a dividend.

The initial distribution rate of $0.17 per unit per month was increased to $0.19 per unit per month in December of 2007, and has never been reduced. Interestingly, since 1994 Vermilion has issued approximately $670 million in total equity, and since January 2003 has distributed almost $1.3 billion back to shareholders through distributions and dividends.

As of September 30, 2011, Vermilion's debt, net of working capital was $467 million against a combined borrowing capacity of $1,025 million.

Vermilion's reserve and production growth comes from a combination of development drilling, reservoir optimization and well-timed strategic acquisitions. The long term goal is to deliver a balanced growth and income to investors.

Vermilion is listed on the Toronto Stock Exchange (VET) and trades over the counter in the United States (pink sheets - VEMTF).

We welcome any questions you may have.

About the Name

The name originated from Alberta’s Vermilion Lakes, a reflection of their reddish ochre waters. The strong colour of Vermilion, which is made up of red, orange and yellow, reflects a vibrant energy company brightening shareholders portfolios through distinctive assets and strategic depth.

Successful Strategy

• Expand asset base through asset optimization, drilling activities and strategic acquisitions
• Focus growth in three regions; Canada, Europe & Australia
• More than 17 years of successful operating results
• Recognized as a premier operator both on and offshore
• Expose shareholders to significant upside opportunities while limiting capital risk
• Maintain strong balance sheet

Quality Assets

• Rich and diverse inventory of near and long term investment prospects within each of our operating jurisdictions
• High cash netback properties
• Reserves life index at December 31, 2010 is 11 years (based on total proven and probable reserves)

Proven Leadership

• The members of the management team average more than 25 years of operating experience and are led by Lorenzo Donadeo (President & CEO), one of three co-founders of the predecessor company, Vermilion Resources Ltd.
• From 2005 through 2010, Vermilion has generated a 5-year compound average rate of return of 16.5% (not including reinvestment of distributions) representing top quartile performance.
• Vermilion’s board of directors has been consistently recognized for superior corporate governance.