Netherlands

The Netherlands is well positioned, in the heart of European natural gas markets
Vermilion’s properties provide abundant gas exploration potential
We are committed to environmentally responsible development

Operations

Produced 21.1 mmcf/d and 23 b/d of associated liquids in 2009 from 46 producing wells (36 net) equivalent to 3,533 boe/d
Reserve life index of 10.4 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 BCF1 of net unrisked resource potential
Vermilion successfully drilled and completed four of these prospects in 2009 - 2010, which when brought on-stream over the next 12 to 15 months, should double Vermilion's total production from the country. Vermilion is currently seeking permits to drill an additional four to six wells in 2011.
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

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