2009-09-21-2009-06-24-2009-07-30

Acquired 18.5% nonop interest in Corrib Field offshore Ireland, gaining 17.5 MMBOE.

Vermilion Energy Trust, Calgary, (Toronto: VET-UN) has closed an acquisition of an 18.5% nonoperated interest in Corrib Field offshore Ireland from Marathon Oil Corp., Houston, (NYSE: MRO) with an initial payment of US$100 million at closing. Vermilion will make an additional payment of approximately US$135 million to US$300 million depending on the date when first commercial gas is achieved. The deal originally offered an additional payment of approximately US$235 million and US$400 million. Currently, first gas is expected by year-end 2011. Corrib Field, approximately 83 kilometers off the northwest coast of Ireland, is expected to produce gross volumes in excess of 300 million cubic feet per day for two to four years before experiencing natural declines of 20%. Net production to Vermilion is initially anticipated at approximately 9,000 barrels of oil equivalent per day. Current net reserves according to Vermilion from Corrib Field are estimated at 17.5 million barrels equivalent as at Jan. 1. Marathon estimated total net proved reserves associated with the Corrib development as of year-end 2008 as 98 billion cubic feet of gas (16.4 million barrels of oil equivalent). The field is estimated to contain approximately 1 trillion cubic feet of gas in place. It lies in 350 meters of water. Shell E&P Ireland Ltd. is operator with 45%. StatoilHydro holds 36.5%. Once on-stream, the production from Corrib is expected to increase Vermilion's total annualized production by approximately 30%. With Corrib, Vermilion's European operation is anticipated to produce more than 20,000 barrels equivalent per day of high netback light sweet oil and gas. Vermilion will assume its share of future capex obligations in order to reach first gas, which are anticipated to range up to US$300 million net to the acquired interest. These capital costs are primarily for the completion of the facilities necessary to bring this gas on-stream. Vermilion reports the deal structure, with a deferred payment, will help mitigate some of the risks associated with first gas timing. The Corrib gas field is forecast to supply up to 60% of Ireland's gas at peak supply.