Activities in the Netherlands focused on the tie-in of wells drilled in 2007 and further optimization of processing facilities at Harlingen. Efforts over the balance of the year will focus on permitting new wells for the 2009 drilling program. Subject to receipt of all approvals, Vermilion hopes to drill 4 to 6 wells in the Netherlands next year.

Operational Activities

Production in the Netherlands averaged 5,096 boe/d in the first quarter of 2008, an increase of 628 boe/d over fourth quarter 2007 production of 4,468. Production is expected to decline slightly over the balance of the year reflecting normal declines.