Canada

• Produced 3,654 b/d of light oil and natural gas liquids and 47.9 mmcf/d of natural gas from 1,021 producing wells (571 net) in 2009, equivalent to 11,629 boe/d
• Reserve life index of 11.0 years based on proved plus probable reserves
• Operator in Canada since 1994, with a well established land base

Vermilion operates in three core areas, all in Alberta:

• Drayton Valley - significant resource play exposure across extensive low cost legacy land base

Cardium Light Oil - Control over 149 net sections (95K acres) of land in the Pembina Cardium fairway, with over 426 net development prospects currently identified with resource potential up to 79 million barrels of oil.  Plan to drill 15 net Cardium wells in 2010; 

Liquids-Rich Tight Gas - Identified 120 net locations with resource potential up to 57 million barrels equivalent.  Plan to drill six net wells in 2010 including four (2.5 net) multi-stage horizontal wells.

• Utikuma - significant light oil field in northern Alberta; Reservoir optimization and enhancement – one of Vermilion’s five largest oil pools
• Central Alberta - coalbed methane and shallow gas development ;  Large inventory of shallow gas CBM wells; Program can be turned on and off quickly depending on commodity prices
• Operate four natural gas plants and hold an ownership interest in a fifth with combined processing capacity of 90 mmcf/d
• Operate five oil batteries with combined processing capacity to handle over 200,000 b/d of fluids including 15,000 b/d of oil