Vermillion To Increase French Property Holdings In Deal With Total

To buy 79% WI in Itteville Field, 90% WI in Vert Le Grand Field, 100% WI in Vert Le Petit Field, 100% WI in La Croix Blanche Field & 56% nonop WI in Dommartin-Lettree Field inParis Basin & 73% WI in Vic Bilh Field in Aquitaine Basin in France, gaining 2,200 BOE/d, 6.7 MMBOE 2P.

Vermilion Energy Inc., Calgary, (Toronto: VET) plans to acquire certain working interests in six producing fields located in the Paris and Aquitaine basins in France from Total E&P France, a subsidiary of Total SA, Paris, (NYSE: TOT) for C$115 million in cash.

The deal values estimated 2012 production at approximately C$52,000 per barrel equivalent per day and proved and probable reserves at C$17.21 per barrel equivalent.

The assets consist of predominantly operated interests in six fields including the Itteville (79%), Vert Le Grand (90%), Vert Le Petit (100%), La Croix Blanche (100%) and Dommartin-Lettree (56%, nonoperated) fields in the Paris Basin and in Vic Bilh Field (73%) in the Aquitaine Basin. Vermilion previously held the remaining nonoperated working interests in each of the Itteville, Vert Le Grand and Vic Bilh fields which will result in Vermilion having a 100% operated working interest in five of the six fields upon closing.

The assets are expected to average approximately 2,200 barrels equivaelent per day in 2012. Proved reserves are 6.7 million barrels equivalent (96% crude oil).

Vermillion reports the deal is a natural addition to its current France asset base and is well aligned with its strategic objective to maintain and consolidate core operating areas and to own and operate 100% of its assets.

The deal is expected to close in late January 2012.