In Australia, Vermilion expects the start of the two well infill development drilling program in the Wandoo Field will be pushed back to December, delaying completion and tie-in to the end of the first quarter of 2009. The production expected from these wells was not included in previous guidance figures and this delay should not impact Vermilion’s 2008 operational results.

Operational Activities

Australia operations were focused on drilling preparations for later this year. This included the installation of a small platform extension to accommodate new well templates as well as the installation of subsea templates. Vermilion’s safety case was submitted to regulators and a rig contract was signed in mid-July.