Operations

Australia

STABLE ASSET DELIVERING BRENT CRUDE PRODUCTION AND STRONG FREE CASH FLOW

• Entered Australia in 2005 
• Offshore oil field ~80 km NW of Australia (55m water depth)
• Horizontal well development with 21 producing well bores
• Wells 600m below sea bed with 500 to 1,000+ m horizontal lengths
• Contracted oil production receives a premium of >US $7 to dated Brent index

Canada

CANADIAN INVENTORY EXPECTED TO DRIVE NEAR AND MEDIUM TERM GROWTH

• Cardium light oil development
• Mannville liquids-rich gas inventory
• Extensive position in Duvernay resource play
• Canadian cash flows are fully tax-sheltered for forseeable future

• Entered France in 1997
• Achieved record annual production level in 2012
• Assets characterized by large OOIP conventional fields with high working interest (OOIP in 4 largest fields >1.4 Bboe)
• Workover, infill drilling and secondary recovery opportunities
• Stable Brent indexed production base with low base decline rate
• Historically strong free cash flow generator
• Potential resource play development over long-term

Netherlands

WORLD CLASS CONVENTIONAL NATURAL GAS BASIN

• Entered Netherlands in 2004
• High impact natural gas drilling and development
• Royalty free natural gas
• Expect 2013 gas price to be ~$10/mcf
• Increasing production while consistently reinvesting <50% of FFO
• Achieved record annual production in 2012

 
Ireland

CORRIB WILL DELIVER 60%-65% OF IRELAND'S GAS NEEDS AT PEAK PRODUCTION

• Offshore natural gas field 83 km NW of Ireland (350m water depth)
• 18.5% working interest acquired 2009
• Well total depth ~3,000m below sea level
• Expected production of 55 mmcf/d (9,000 boe/d) net to Vermilion in late 2014 or early 2015 with peak production in mid-2015 (company estimates)