France

An ongoing workover and recompletion program in France is expected to maintain stable production volumes and we continue to review long-term growth opportunities related to improving recoveries from the four large oil fields that Vermilion operates in the country.  Vermilion is also beginning to review the applicability of North American drilling and completion technologies to both shale oil and tight gas reservoirs that have been identified on its lands.

Vermilion initiated drilling of the Les Mimosas 2 well in the Aquitaine Basin.  Drilling remained in progress at the end of the first quarter of 2010.  This well is being drilled to improve the recovery of oil from this single well pool that was discovered in 2004.  Vermilion plans to maintain an active workover and recompletion program across its properties in France to hold production relatively flat while it continues preparations for its CO₂ injection pilot in 2011 and furthers its evaluation of the Lias shale and other resource plays in the region with a view to potential commercial production in the years ahead.