Vermilion
Vermilion
Vermilion
Canada

Canada

  • Vermilion has over 15 years of successful Canadian operations
  • Canada provides a vast source of oil and gas technology and trained personnel
  • New well completion techniques are revitalizing the Western Canadian Basin

Vermilion in Canada

Alberta

  • In West Pembina, potential for three significant development projects sharing the same surface infrastructure
  • Cardium light oil development (1,800 m depth)
  • Mannville liquids-rich gas inventory (2,400 - 2,700 m depth)
  • Extensive position in Duvernay liquids-rich gas resource play (3,200 - 3,400 m depth)
  • 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 five additional plants with combined processing capacity of 80 mmcf/d
  • Operate five oil batteries with combined processing capacity to handle over 20,500 bbl/d of oil

Southeast Saskatchewan

  • Acquired Elkhorn Resources Inc. for $427 MM (closed April 29, 2014)
  • $205MM equity (2.8MM VET shares) + $180MM cash + $42MM assumed debt
    • $114,000 per boe/d (8% accretive on annualized 2014E production per share)
    • $25.80 per 2P boe (2P reserves as evaluated by GLJ Petroleum Consultants Ltd. (reported dated March 17, 2014 with an effective date of February 28, 2014) (6% accretive on Corporate 2P reserves per share)
    • 5.3x 2014E FFO (10% accretive on annualized 2014 fund flows per share)
  • 2P reserves = 16.5 mmboe (2P reserves as evaluated by GLJ Petroleum Consultants Ltd. (reported dated March 17, 2014 with an effective date of February 28, 2014).
  • Approximately 190 net future drilling locations identified by Vermilion on Elkhorn lands
    • ~57,000 net acres of highly contiguous land at ~90% working interest
    • Primary target is Mississippian Midale formation
    • Secondary targets are Mississippian Frobisher and Devonian Bakken / Three Forks
    • ~55% unbooked (not included in GLJ Report)
  • Post-Elkhorn, added 15,000 net acres at 100% working interest with approximately 60 prospective locations
  • Complements our previously-leased 15,000 net acre position targeting Mississippian in southwest Manitoba.

Q3 2014 average production in Canada is approximately 23,300 boe/d.

Canada Alberta Saskatchewan