Vermilion has put in place the following derivative financial insturments to manage exposure to fluctuations in commodity prices.
| Vermilion Oil Hedging Summary | ||||
|
WTI |
Term |
Vol (1) |
Floor |
Ceiling |
|---|---|---|---|---|
| Collar | Apr-Dec 10 |
1,500 |
72.00 |
95.00 |
| Collar | Cal10 | 1,500 | 70.00 | 97.80 |
| Collar | Cal10 | 1,500 | 72.00 | 99.00 |
| Collar | Cal10 | 1,500 | 72.00 | 100.65 |
| Collar | Cal10 | 750 | 70.00 | 97.40 |
| Collar | Cal10 | 750 | 69.00 | 90.15 |
| Collar | Jan-Jun 11 |
2,400 |
80.00 |
107.60 |
| Collar | Jul-Dec 11 |
2,400 |
80.00 |
110.00 |
| 1 Represents approximately 40% of Vermilion's projected 2010 oil production | ||||