Netherlands average production increased 4% to 5,751 boe/d in 2012, from 5,538 boe/d in 2011.
Reserve life index of 5.8 years based on proved plus probable reserves
Entered Netherlands in 2004, acquiring 5,900 b/d of mature natural gas properties
Netherlands efforts have been focused on optimizing wells and surface facilities to improve the flow quality of production at reduced costs
Install smaller diameter production tubing to improve well flow
Shut-off water encroachment zones
Streamline surface facilities to improve processing efficiency
Drilled first step-out wells in 2007
The 2004 purchase of production in the Netherlands came with adjacent lands and abundant, close in, lower risk exploration prospects
These lands are held by production with no forced expiries
Over 30 prospects in 3 major play areas ranging from 2 - 186 BCF of net unrisked resource potential
Vermilion successfully drilled and completed four of these prospects in 2009 - 2010. Two wells were brought on-stream in mid-2010 with combined production of 2,000 to 2,500 boe/d. The remaining two wells are expected to be brought on production in mid-2011 adding a further 1,500 to 2,000 boe/d of combined production. Vermilion is currently seeking permits to enable continuous drilling of four to six wells per year for the foreseeable future.
In July 2008 Vermilion voluntarily shut in 1,000 boe/d of production in the Harlingen region in northwest Netherlands due to ground subsidence concerns
This production will remain shut-in until Vermilion and the regulatory authorities can improve the predictability of future subsidence