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Operations | Diversification | France
    Fourth Quarter Overview
   

In France, Vermilion participated in the drilling and completion of one oil well (0.2 net) at Itteville in the Paris Basin.  An active workover and recompletion program across all of its properties was instrumental in holding production declines to minimal levels, despite the low drilling activity.  As well, much time and capital was focused on the repair and maintenance of surface facilities in the Chaunoy field acquired in 2006.  Depending on commodity price strength, a significant increase in well workovers and recompletions is scheduled for France in 2009.

Production in France averaged 8,710 boe/d in 2008, 1.1% lower than the 8,809 boe/d produced in 2007, reflecting a limited drilling program.  Fourth quarter production of 8,630 boe/d in 2008 was 3.5% lower than the 8,946 boe/d produced in France during the fourth quarter of 2007.