France

Vermilion is completing a well in the Cazaux field that was drilled to test an undeveloped fault block within this field. The well will be tested and put on production in the second quarter. A second well may be drilled contingent on the performance of this new well. An active workover and completion program over the balance of the year is expected to hold production levels relatively stable. Vermilion remains in discussion with regulatory authorities regarding the evaluation of resource play potential in France, including the Lias Shale oil play in the Paris Basin. The proposed drilling of two verticals wells through the shale and recompletion of the shale in a number of existing wellbores has been deferred as a result of recent government pronouncements and a timeline and framework for further activities has yet to be established.

Vermilion completed workovers on 10 wells (9.5 net) during the first quarter of 2011 including three in the Aquitaine Basin with the remainder in the Paris Basin. Vermilion also spud a conventional well to test an undeveloped fault block within the Cazaux field during the first quarter.