Annual General Meeting Vermilion Energy Inc. Steady Growth Stable Dividends May 6, 2011 A World of Energy 1
2010 Highlights Successfully converted to corporate structure (Sept 10) Achieved ZERO lost time incidents reflecting our commitment to safety Averaged 32,132 boe/d, exited 2010 at 35,302 boe/d (Q4 avg) Significantly expanded…
First Quarter 2011 Results Continued development of Cardium program in Canada with six wells coming on production during the quarter Significantly furthered construction of 15,000 boe/d oil battery and completed installation of…
A Great Place to Work In Canada Vermilion has once again been recognized as one of Canadas Top 25 employers on the 2011 Best Workplaces in Canada list. (15th Place) In France We are proud to celebrate this achievement together with…
Environmentally Prudent Vermilion continues to pursue creative solutions to improve the environment Vermilion has entered into a cogeneration project with a producer of greenhouse tomatoes to capture waste heat and previously flared…
Community Investment Vermilion Energy / YWCA Skills Training Centre Together with the Friends of Vermilion our Companys founders, board of directors, executive and staff, we have committed over 4MM Provides disadvantaged women…
Corporate Profile 8
Market Profile VET Toronto Stock Exchange (May 4, 2011) 49.27 Monthly dividend 0.19 Current yield 4.6% Market capitalization (89 MM shares outstanding) C4.4 billion Management ownership and control position 9% Net debt (March…
Global Operations Netherlands FOCUS: FOCUS: Q1 Production High impact natural New gas field under Ireland 5,039 boe/d gas exploration & development (Corrib) (Royalty free development drilling natural gas priced to oil) 2011E…
Why Invest in Vermilion Proven track record of top quartile performance 50% Total Return in 2010 25+% CAGR since 2003 (Dividend paying model) Stable and reliable dividends No cut in monthly dividend stream since initiated in…
Relative Performance Total Return Performance by Period 60% 40% 20% 0% Total Period Return Performance to Dec 31, 2010 -20% 1yr 3yr 5yr Vermilion Energy Vermilion Energy 49.6% 55.0% 92.2% S&P/TSX Composite Index…
Value Creation 1994 Q1 2011 Total Value Creation to Q1 2011 = 4,950 6,000 5,000 4,000 4,509 3,000 millions 2,000 1,000 528 0 640 (1,000) Equity issued for cash Dividends (1,168 mm) Current market since 1994…
Stable, Reliable Dividends Maintain stable dividend policy Use balance sheet strength to fund excess capital requirements Once Ireland on-stream - total payout target 70 80% of fund flows Strategic plan based on conservative…
Balance Sheet Strength - Focus Balance sheet supports long term plans to grow production and cash flow Debt levels may slightly exceed Company target levels of 1.0x or less until Corrib first gas but will remain well below current…
Visible Growth - Production Anticipate production growth to more than 50,000 boe/d by 2015 50 Projected Production Growth (mboe/d) 10+% CAGR* Key contributors of near term growth Cardium Oil Netherlands Gas Corrib…
Visible Growth - Prospects Robust prospect inventory to drive growth beyond 2017 Over 425 net undrilled Cardium locations (A & B) Over 115 net undrilled liquids-rich tight gas locations Over 20 net undrilled Netherlands gas…
UNBOOKED Resource Potential Resource Related Upside* Country Reported 2010 Reported 2010 Average Net Reserves Initial NET Proved Reserves 2P Reserves Working Unbooked Per Well Production Unbooked (Country Total) (Country Total)…
2010 / 2011 Development Capital Key 2011 Capital Activities 2010 2011E (mm) (mm) Canada 30-35 Cardium Oil, 6 deep/tight gas, Battery/ 243 225 infrastructure, workovers/recompletions, land France Active workover/recompletions,…
Prospects Overview 22
Strategy Focus - Canada Develop conventional and unconventional resource plays Cardium oil Liquids-rich gas Grow significant resource based drilling inventory and supporting infrastructure Expand large contiguous land base…
West Pembina Cardium Overview Cardium Vermilion has a dominant position in Productive Trend the best quality Cardium (A/B) D Cardium D Zero Sandstone/Conglomerate play Edge Low gas to oil ratio (GOR) C A C Thick pay zone (6 -…
Cardium Results West Pembina Vermilions initial results exceeding expectations and industry results 2010 & 2011 Cardium Well Performance Operated Type A vs. Actual - Producing & Calendar Day as at Apr 28 400 30 350 25 300 20…
Cardium Near Term Development 2010 Drilling activity 13.9 operated wells in 2010 (A Quality) 5.3 net non-operated wells in 2010 Tested water based frac in Q4-2010 2011 Budget 30 to 35 net wells 17 operated wells (A Quality) 6…
Liquids-Rich Gas Overview West Pembina & Ferrier Underexploited stacked Mannville sands Conventional Notikewin Ellerslie Resource Notikewin Resource Additional emerging gas plays Multi-zone, liquids-rich gas 40 to 60 bbls/mmcf…
Strategic Focus - Netherlands Second largest onshore gas operations in the Netherlands 4 wells drilled in 2009/10 adding 2,500 boe/d and 4 mmboe of P50 reserves (additional 1,500 to 2,000 boe/d anticipated to be on production in…
Netherlands 2011 Activity Complete tie-in of 1,500 to 2,000 boe/d from Vinkega Middelburen 2 and De Hoeve wells drilled in 2009/2010 Legend Vermilion Concessions Complete 4 new drills Producing Gas Fields during 2H of 2011…
Strategic Focus - Australia Wandoo Field 100% owned and operated 21 producing wells, 2 offshore oil production platforms with fluid processing capacity of 160,000+ bpd Maintain production through ongoing development drilling,…
Wandoo Activity 2010 - 2011 2008 Wells Three new legs drilled in 2H 2010 with strong 2010 Wells productive capability New wells used deviated sidetracks off existing well bores Brought on production at restricted rate of 1,500…
Strategic Focus - France Maintain stable production through workover and recompletion program Optimize performance of large waterfloods Reduce drill/completion/well servicing costs Evaluate and position for potential…
LIAS Shale Oil Play Area of greatest LIAS Vermilion shale oil potential CHN 29D LIAS test Toreadors LIAS acreage: 300,000 Vermilions LIAS acreage: 175,962 Vermilion Vermilion Additional acreage targeted: 636,721 CHN 6D…
Recent Developments - France Moratorium on unconventional drilling awaiting final report (May 31) Key findings of preliminary report (Apr 21) .It would be unfortunate for the economy and economics of France if shale exploitation…
Asset Overview - Ireland Corrib Partnership Interests 45.5% Shell (Operator) 36.0% Statoil 18.5% Vermilion (acquired in 2009) Corrib will provide 65% of Irelands domestic gas needs at start-up Key permits now received 35
Corrib Construction of tunneling site for on-shore pipeline started in April An Bord Pleanla (ABP) approval for onshore pipeline received January 20, 2011 Final payment of US135 due December 2012 First gas expected mid 2013…
Corrib Pipeline Routing 37
Why Invest in Vermilion Disciplined visible growth of 10% per year through 2015 Robust oil rich portfolio to support growth beyond 2017 Corrib 25% - 30% accretive production increase Corrib 30% - 35% accretive cash flow…
Loading...
