In France, Vermilion reinstated service to the Parentis-Ambès pipeline using temporary storage facilities at the Ambès terminal and a shuttle tanker to transport the oil to refineries at Donges. The refurbishment of Vermilion’s main tanks at the Ambès terminal is underway and full ‘normal’ service at the terminal should resume early in 2009. This ends the truck transportation program in southern France, reducing costs and future environmental risk.

The seismic program at Cazaux began during the first quarter which should provide better definition of this reservoir and expand the number of drillable prospects available to Vermilion. A permitting process is underway that would accommodate the Trust’s plans to drill 8 to 12 wells in France in 2009. Vermilion is also participating with TOTAL in a pilot CO2 flood of the Vic Bihl Field in southern France in which Vermilion holds a 27% interest. Information gathered from this program will be beneficial towards the development of future enhanced oil recovery initiatives in France.

Operational Activities

Production in France averaged 8,800 boe/d in the first quarter of 2008, slightly below the 8,946 boe/d produced in the fourth quarter of 2007. Higher workover activity levels combined with modest drilling in the second half of 2008 are expected to sustain production over the balance of the year at current levels.