Canada

• Produced 4,205 b/d of light oil and natural gas liquids and 43.9 mmcf/d of natural gas from 1,052 producing wells (571 net) in 2010, equivalent to 11,524 boe/d
• Reserve life index of 12.7 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 (96K acres) of land in the Pembina Cardium fairway, with over 400 net development prospects currently identified with unbooked resource potential of more than 70 million barrels of oil.  Plan to drill 33 net Cardium wells in 2011; 

Liquids-Rich Tight Gas - Identified approximately 120 net locations with unbooked resource potential of 50 to 60 million barrels equivalent.  Plan to drill six net wells in 2011 to further delineate potential for future development.

• 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