Vermilion Energy Inc. Announces 2015 Year-End Summary Reserves and Resource Information

CALGARY, Feb. 29, 2016 /CNW/ - Vermilion Energy Inc. ("Vermilion", the "Company", "We" or "Our") (TSX, NYSE: VET) is pleased to announce summary 2015 year-end reserves and resource information.  The estimates of reserves and resources and other oil and gas information contained in this news release has been estimated by GLJ Petroleum Consultants Ltd. ("GLJ") and prepared in accordance with National Instrument 51-101 "Standards of Disclosure for Oil and Gas Activities" of the Canadian Securities Administrators ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook ("COGEH"). For additional information about Vermilion, including Vermilion's statement of reserves data and other information in Form 51-101F1, report on reserves data by independent qualified reserves evaluator or auditor in Form 51-101F2 and report of management and directors on oil and gas disclosure in Form 51-101F3, please review the Company's Annual Information Form for the year ended December 31, 2015, to be filed on March 4, 2016 and available on SEDAR at www.sedar.com and on the SEC's EDGAR system at www.sec.gov.

HIGHLIGHTS

  • Total proved ("1P") reserves increased 6% to 160.7 mmboe(1), while total proved plus probable ("2P") reserves also increased 6% to 260.9 mmboe(1).  This represents year-over-year 1P and 2P per share reserves growth of 2% and 1%, respectively.
  • Finding and Development ("F&D")(2) and Finding, Development and Acquisition ("FD&A")(2) costs, including Future Development Capital ("FDC") for 2015 on a 2P basis decreased 48% to $8.98/boe and 55% to $10.03/boe, respectively.  Similarly, our three-year F&D and FD&A, including FDC, on a 2P basis were $14.82/boe and $17.81/boe, respectively.
  • Achieved a $212.6 million (12%) reduction in FDC costs attributable our existing assets through reductions in drilling, completions and facility capital costs.  This was partially offset by the addition of $38.4 million of FDC related to properties acquired during the year resulting in a net reduction in FDC of 11% to $1.6 billion in 2015.
  • Recycle ratio (including FDC) was 3.6x during 2015, an increase over 3.2x achieved during 2014, indicating that Vermilion has been able to maintain our high level of investment efficiency despite the decline in commodity prices.
  • In 2015, we added 34.0 mmboe of 2P reserves with 30.5 mmboe (90%) of additions coming from exploration and development ("E&D") activities and 3.5 mmboe (10%) of additions through acquisitions.
  • Replaced 152% of production at the 2P level through E&D related activities and 170% including acquisitions.  At a 1P level, we replaced 142% and 146% of 2015 production, respectively.
  • Increased Proved Developed Producing ("PDP") reserves by 25% to 110.4 mmboe at an average F&D cost (including FDC) of $10.67/boe resulting in a recycle ratio (including FDC) of 3.0x.  PDP reserves represent 69% of 1P reserves in 2015 as compared to 58% in 2014.
  • Positive technical revisions of 2.0 mmboe on a 2P basis resulting from strong well performance were more than offset by 10.3 mmboe of revisions due to the decrease in commodity prices since year-end 2014.  Only 4% of the economic revisions occurred outside of Canada, reflecting the continued high quality of our reserves attributable to our international operations.
  • Our independent GLJ 2015 Resource Assessment(3) indicates low, best, and high estimates for contingent resources in the Development Pending category are 95.1(3) mmboe, 160.7(3) mmboe, and 254.7(3) mmboe, respectively.  Approximately 80% of our best estimate contingent resources evaluated reside in the Development Pending category, reflecting the high quality nature of our contingent resource base.
  • At year-end 2015, 2P reserves were comprised of 30% Brent-based light crude, 17% North American-based light crude, 11% natural gas liquids, 20% European natural gas and 22% North American natural gas.
  • Achieved a reserve life index for 2P reserves of 11.7 years for year-end 2015 reserves based on annualized Q4 2015 production, compared to 13.6 years at year-end 2014. Year-end 2015 reserve life index for 1P reserves was 7.2 years, as compared to 8.4 years at year-end 2014.
  • Based on the continued success of our Mannville liquids-rich gas play in Alberta, our 2015 activities resulted in an additional 35 (23.2 net) undeveloped wells booked at the 2P level, with average net reserves of approximately 620 mboe/well.  Additionally, we added a further 14 (9 net) undeveloped wells that were attributed to lands acquired in 2015.
  • In the Paris Basin, we added 7.3 mmboe of 2P reserves, related to 18 development opportunities, including 15 new additions and strong upward revisions related to well performance and expanded waterflood response.  Well additions and successful workover and optimization campaigns in the Aquitaine Basin in France added a further 2.8 mmboe of 2P reserves.
  • We added an additional 1.9 mmboe of 2P reserves to our Slootdorp-06 well (92.8 working interest) related to the discovery in the Rotliegend formation and an additional 1.5 mmboe of 2P reserves to our Slootdorp-07 well (92.8% working interest) related to the discovery in the Zechstein formation).

(1) As evaluated by GLJ Petroleum Consultants Ltd. ("GLJ") in a report dated February 8, 2016 with an effective date of December 31, 2015.
(2) F&D (finding and development) and FD&A (finding, development and acquisition) costs are used as a measure of capital efficiency and are calculated by dividing the applicable capital costs for the period, including the change in undiscounted future development capital ("FDC"), by the change in the reserves, incorporating revisions and production, for the same period.
(3) Vermilion retained GLJ to conduct an independent resource evaluation dated February 8, 2016 to assess contingent resources across all of the Company's key operating regions with an effective date of December 31, 2015 (the "GLJ 2015 Resource Assessment").  The associated chance of development for each of the low, best and high estimate for contingent resources in the Development Pending category are 83%, 82% and 81%, respectively.  There is uncertainty that it will be commercially viable to produce any portion of the resources.

DISCLAIMER

Certain statements included or incorporated by reference in this news release may constitute forward looking statements or financial outlooks under applicable securities legislation.  Such forward looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", or similar words suggesting future outcomes or statements regarding an outlook.  Forward looking statements or information in this news release may include, but are not limited to:

  • capital expenditures;
  • business strategies and objectives;
  • estimated reserve quantities and the discounted present value of future net cash flows from such reserves;
  • petroleum and natural gas sales;
  • future production levels (including the timing thereof) and rates of average annual production growth, estimated contingent resources and prospective resources;
  • exploration and development plans;
  • acquisition and disposition plans and the timing thereof;
  • operating and other expenses, including the payment of future dividends;
  • royalty and income tax rates;
  • the timing of regulatory proceedings and approvals; and
  • the estimate of Vermilion's share of the expected natural gas production from the Corrib field.

Such forward-looking statements or information are based on a number of assumptions all or any of which may prove to be incorrect.  In addition to any other assumptions identified in this document, assumptions have been made regarding, among other things:

  • the ability of the Company to obtain equipment, services and supplies in a timely manner to carry out its activities in Canada and internationally;
  • the ability of the Company to market crude oil, natural gas liquids and natural gas successfully to current and new customers;
  • the timing and costs of pipeline and storage facility construction and expansion and the ability to secure adequate product transportation;
  • the timely receipt of required regulatory approvals;
  • the ability of the Company to obtain financing on acceptable terms;
  • foreign currency exchange rates and interest rates;
  • future crude oil, natural gas liquids and natural gas prices; and
  • Management's expectations relating to the timing and results of development activities.

Although the Company believes that the expectations reflected in such forward looking statements or information are reasonable, undue reliance should not be placed on forward looking statements because the Company can give no assurance that such expectations will prove to be correct.  Financial outlooks are provided for the purpose of understanding the Company's financial strength and business objectives and the information may not be appropriate for other purposes.  Forward looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward looking statements or information.  These risks and uncertainties include but are not limited to:

  • the ability of management to execute its business plan;
  • the risks of the oil and gas industry, both domestically and internationally, such as operational risks in exploring for, developing and producing crude oil, natural gas liquids and natural gas;
  • risks and uncertainties involving geology of crude oil, natural gas liquids and natural gas deposits;
  • risks inherent in the Company's marketing operations, including credit risk;
  • the uncertainty of reserves estimates and reserves life and estimates of resources and associated expenditures;
  • the uncertainty of estimates and projections relating to production, costs and expenses;
  • potential delays or changes in plans with respect to exploration or development projects or capital expenditures;
  • the Company's ability to enter into or renew leases on acceptable terms;
  • fluctuations in crude oil, natural gas liquids and natural gas prices, foreign currency exchange rates and interest rates;
  • health, safety and environmental risks;
  • uncertainties as to the availability and cost of financing;
  • the ability of the Company to add production and reserves through exploration and development activities;
  • general economic and business conditions;
  • the possibility that government policies or laws may change or governmental approvals may be delayed or withheld;
  • uncertainty in amounts and timing of royalty payments;
  • risks associated with existing and potential future law suits and regulatory actions against the Company; and
  • other risks and uncertainties described elsewhere in the annual information form of the Company for the year ended December 31, 2014 or in the Company's other filings with Canadian securities authorities.

The forward-looking statements or information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws.

RESERVES, FUTURE NET REVENUE AND OTHER OIL AND GAS INFORMATION

The following is a summary of the oil and natural gas reserves and the value of future net revenue of Vermilion as evaluated by GLJ, independent petroleum engineering consultants in Calgary in a report dated February 8, 2016 with an effective date of December 31, 2015 (the "GLJ 2015 Reserves Evaluation").  The GLJ 2015 Reserves Evaluation was prepared in accordance with National Instrument 51-101 and COGEH.

Reserves and other oil and gas information in this news release is effective December 31, 2015 unless otherwise stated.

All evaluations of future net production revenue set forth in the tables below are stated after overriding and lessor royalties, Crown royalties, freehold royalties, mineral taxes, direct lifting costs, normal allocated overhead and future capital investments, including abandonment and reclamation obligations.  Future net production revenues estimated by the GLJ 2015 Reserves Evaluation do not represent the fair market value of the reserves.  Other assumptions relating to the costs, prices for future production and other matters are included in the GLJ 2015 Reserve Evaluation.  There is no assurance that the future price and cost assumptions used in the GLJ 2015 Reserves Evaluation will prove accurate and variances could be material.

Reserves for Australia, Canada, France, Germany, Ireland, the Netherlands and the United States are established using deterministic methodology.  Total proved reserves are established at the 90 percent probability (P90) level.  There is a 90 percent probability that the actual reserves recovered will be equal to or greater than the P90 reserves.  Total proved plus probable reserves are established at the 50 percent probability (P50) level.  There is a 50 percent probability that the actual reserves recovered will be equal to or greater than the P50 reserves.

Estimates of reserves have been made assuming that development of each property, in respect of which estimates have been made, will occur without regard to the availability of funding required for that development.

With respect to finding and development costs, the aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserve additions for that year.

Pricing used in the forecast price estimates is set forth in the table below and referenced in the notes to subsequent tables.

Table 1: Forecast Prices used in Estimates (1)

                                         
      Light Crude Oil and       Natural Gas   Natural Gas   Natural Gas   Inflation   Exchange   Exchange
      & Medium Crude Oil   Crude Oil   Canada   Europe   Liquids   Rate   Rate   Rate
  WTI   Edmonton     Cromer   Brent Blend       National Balancing                
  Cushing   Par Price     Medium   FOB   AECO   Point   FOB            
  Oklahoma   40˚ API     29.3˚ API   North Sea   Gas Price   (UK)   Field Gate   Percent        
Year ($US/bbl)   ($Cdn/bbl)     ($Cdn/bbl)   ($US/bbl)   ($Cdn/MMBtu)   ($US/MMBtu)   ($Cdn/bbl)   Per Year   ($US/$Cdn)   ($CdnEUR)
2015 48.82   57.23     51.91   53.75   2.70   6.55   34.59   1.1   0.783   1.419
Forecast                                        
2016 44.00   55.86     50.80   45.00   2.76   5.55   30.27   2.0   0.725   1.517
2017 52.00   64.00     59.52   54.00   3.27   5.68   35.76   2.0   0.750   1.467
2018 58.00   68.39     63.60   61.00   3.45   6.10   39.04   2.0   0.775   1.419
2019 64.00   73.75     68.59   67.00   3.63   6.70   42.96   2.0   0.800   1.375
2020 70.00   78.79     73.27   73.00   3.81   7.30   45.85   2.0   0.825   1.333
2021 75.00   82.35     76.59   78.00   3.90   7.80   47.86   2.0   0.850   1.294
2022 80.00   88.24     82.06   83.00   4.10   8.30   51.23   2.0   0.850   1.294
2023 85.00   94.12     87.53   88.00   4.30   8.80   54.59   2.0   0.850   1.294
2024 87.88   96.48     89.73   91.39   4.50   9.14   57.18   2.0   0.850   1.294
Thereafter 2.0%   2.0%     2.0%   2.0%   2.0%   2.0%   2.0%   2.0%   0.850   1.294
 
Note:
(1) The pricing assumptions used in the GLJ Report  with respect to net present value of future net revenue (forecast) as well as the inflation rates used for operating and capital costs are set forth above.  The NGL price is an aggregate of the individual natural gas liquids prices used in the Total Proved plus Probable evaluation.  GLJ is an independent qualified reserves evaluator appointed pursuant to NI 51-101.

All forecast prices in the tables above are provided by GLJ.  For 2015, the price of Vermilion's natural gas in the Netherlands is based on the TTF day-ahead index, as determined on the Title Transfer Facility Virtual Trading Point operated by Dutch TSO Gas Transport Services, plus various fees. GasTerra, a state owned entity purchases all natural gas produced by Vermilion in the Netherlands.  The price of Vermilion's natural gas in Germany is based on the TTF month-ahead index, as determined on the Title Transfer Facility Virtual Trading Point operated by Dutch TSO Gas Transport Services, plus various fees.  The benchmark price for Australia and France crude oil is Dated Brent. The benchmark price for Canadian crude oil is Edmonton Par and Canadian natural gas is priced against AECO.  For the year ended December 31, 2015, the average realized sales prices before hedging were $70.22 per bbl (Australia), $7.79 per Mcf (Netherlands), $7.18 per Mcf (Germany), $63.31 per bbl (France) for Brent-based crude oil, $49.10 per bbl (United States) for WTI, $49.73 per bbl for Canadian-based crude oil and NGLs and $2.78 per Mcf for Canadian natural gas.

The following table summarizes the capital expenditures made by Vermilion on oil and natural gas properties for the year ended December 31, 2015:

Table 2: Capital Costs Incurred

    Acquisition Costs            
    Proved   Unproved   Exploration   Development   Total
(M$)   Properties   Properties   Costs   Costs   Costs
Australia   -     -     -     61,741   61,741
Canada   14,650   -     -     201,508   216,158
France   317   -     -     92,265   92,582
Germany   -     -     -     5,363   5,363
Hungary   -     -     1,166   -     1,166
Ireland   -     -     -     66,409   66,409
Netherlands   -     -     -     47,325   47,325
United States   12,764   -     -     12,250   25,014
Total   27,731   -     1,166   486,861   515,758

The following table sets forth the reserve life index based on total proved and proved plus probable reserve and fourth quarter 2015 production of 61,058 boe/d.

Table 3: Reserve Life Index

Commodity     Production     Reserve Life Index (years)
      Fourth Quarter 2015     Total Proved     Proved Plus Probable
Oil and natural gas liquids (bbl/d)     34,043     7.6     12.2
Natural gas (mmcf/d)     162.09     6.7     11.1
Oil Equivalent (boe/d)     61,058     7.2     11.7

The following tables provide reserves data and a breakdown of future net revenue by component and production group using forecast prices and costs.  For Canada, the tables following include Alberta gas cost allowance.

The following tables may not total due to rounding.

Table 4: Oil and Gas Reserves - Based on Forecast Prices and Costs (1)

    Light Crude Oil & Medium Crude Oil   Heavy Oil   Tight Oil   Conventional Natural Gas
    Gross (2)   Net (2)   Gross (2)   Net (2)   Gross (2)   Net (2)   Gross (2)   Net (2)
    (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (MMcf)   (MMcf)
Proved Developed Producing (3) (5) (6)                                
Australia   11,465   11,465   -   -   -   -   -   -
Canada   13,528   11,785   9   9   10   8   98,840   89,253
France   34,866   32,097   -   -   -   -   7,835   7,309
Germany   -   -   -   -   -   -   20,876   18,148
Ireland   -   -   -   -   -   -   94,976   94,976
Netherlands   -   -   -   -   -   -   29,961   27,236
United States   384   314   -   -   -   -   372   304
Total Proved Developed Producing   60,243   55,661   9   9   10   8   252,860   237,226
                                 
                                 
    Shale Gas   Coal Bed Methane   Natural Gas Liquids   BOE
    Gross (2)   Net (2)   Gross (2)   Net (2)   Gross (2)   Net (2)   Gross   Net
    (MMcf)   (MMcf)   (MMcf)   (MMcf)   (Mbbl)   (Mbbl)   (Mboe)   (Mboe)
Proved Developed Producing (3) (5) (6)                                
Australia   -   -   -   -   -   -   11,465   11,465
Canada   1,942   1,832   3,100   2,883   7,052   5,383   37,913   32,846
France   -   -   -   -   -   -   36,172   33,315
Germany   -   -   -   -   -   -   3,479   3,025
Ireland   -   -   -   -   -   -   15,829   15,829
Netherlands   -   -   -   -   66   60   5,060   4,599
United States   -   -   -   -   59   49   505   414
    1,942   1,832   3,100   2,883   7,177   5,492   110,423   101,493
                                 
                                 
    Light Crude Oil & Medium Crude Oil   Heavy Oil   Tight Oil   Conventional Natural Gas
    Gross (2)   Net (2)   Gross (2)   Net (2)   Gross (2)   Net (2)   Gross (2)   Net (2)
    (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (MMcf)   (MMcf)
Proved Developed Non-Producing                                
Australia   -   -   -   -   -   -   -   -
Canada   1,032   940   -   -   -   -   17,090   14,633
France   1,914   1,754   -   -   -   -   -   -
Germany   -   -   -   -   -   -   8,263   7,157
Ireland   -   -   -   -   -   -   10,845   10,845
Netherlands   -   -   -   -   -   -   18,238   18,238
United States   313   254   -   -   -   -   318   258
Total Proved Developed Non-Producing   3,259   2,948   -   -   -   -   54,754   51,131
                                 
                                 
    Shale Gas   Coal Bed Methane   Natural Gas Liquids   BOE
    Gross (2)   Net (2)   Gross (2)   Net (2)   Gross (2)   Net (2)   Gross   Net
    (MMcf)   (MMcf)   (MMcf)   (MMcf)   (Mbbl)   (Mbbl)   (Mboe)   (Mboe)
Proved Developed Non-Producing                                
Australia   -   -   -   -   -   -   -   -
Canada   -   -   1,743   1,643   692   490   4,863   4,143
France   -   -   -   -   -   -   1,914   1,754
Germany   -   -   -   -   -   -   1,377   1,193
Ireland   -   -   -   -   -   -   1,808   1,808
Netherlands   -   -   -   -   22   22   3,062   3,062
United States   -   -   -   -   51   41   417   338
Total Proved Developed Non-Producing   -   -   1,743   1,643   765   553   13,441   12,298
                                 
                                 
    Light Crude Oil & Medium Crude Oil   Heavy Oil   Tight Oil   Conventional Natural Gas
    Gross (2)   Net (2)   Gross (2)   Net (2)   Gross (2)   Net (2)   Gross (2)   Net (2)
    (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (MMcf)   (MMcf)
Proved Undeveloped (3) (8)                                
Australia   2,300   2,300   -   -   -   -   -   -
Canada   8,411   7,357   -   -   -   -   74,181   68,479
France   3,941   3,693   -   -   -   -   -   -
Germany   -   -   -   -   -   -   2,361   1,684
Ireland   -   -   -   -   -   -   -   -
Netherlands   -   -   -   -   -   -   -   -
United States   1,337   1,087   -   -   -   -   1,480   1,204
Total Proved Undeveloped   15,989   14,437   -   -   -   -   78,022   71,367
                                 
                                 
    Shale Gas   Coal Bed Methane   Natural Gas Liquids   BOE
    Gross (2)   Net (2)   Gross (2)   Net (2)   Gross (2)   Net (2)   Gross   Net
    (MMcf)   (MMcf)   (MMcf)   (MMcf)   (Mbbl)   (Mbbl)   (Mboe)   (Mboe)
Proved Undeveloped                                
Australia   -   -   -   -   -   -   2,300   2,300
Canada   -   -   3,367   3,114   7,051   5,955   28,387   25,244
France   -   -   -   -   -   -   3,941   3,693
Germany   -   -   -   -   -   -   394   281
Ireland   -   -   -   -   -   -   -   -
Netherlands   -   -   -   -   -   -   -   -
United States   -   -   -   -   236   192   1,820   1,480
Total Proved Undeveloped   -   -   3,367   3,114   7,287   6,147   36,842   32,998
                                 
                                 
    Light Crude Oil & Medium Crude Oil   Heavy Oil   Tight Oil   Conventional Natural Gas
    Gross (2)   Net (2)   Gross (2)   Net (2)   Gross (2)   Net (2)   Gross (2)   Net (2)
    (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (MMcf)   (MMcf)
Proved (3)                                
Australia   13,765   13,765   -     -     -     -     -     -  
Canada   22,971   20,082   9   9   10   8   190,111   172,365
France   40,721   37,544   -     -     -     -     7,835   7,309
Germany   -     -     -     -     -     -     31,500   26,989
Ireland   -     -     -     -     -     -     105,821   105,821
Netherlands   -     -     -     -     -     -     48,199   45,474
United States   2,034   1,655   -     -     -     -     2,170   1,766
Total Proved   79,491   73,046   9   9   10   8   385,637   359,724
                                 
                                 
    Shale Gas   Coal Bed Methane   Natural Gas Liquids   BOE
    Gross (2)   Net (2)   Gross (2)   Net (2)   Gross (2)   Net (2)   Gross   Net
    (MMcf)   (MMcf)   (MMcf)   (MMcf)   (Mbbl)   (Mbbl)   (Mboe)   (Mboe)
Proved                                
Australia   -     -     -     -     -     -     13,765   13,765
Canada   1,942   1,832   8,210   7,640   14,795   11,828   71,163   62,233
France   -     -     -     -     -     -     42,027   38,762
Germany   -     -     -     -     -     -     5,250   4,499
Ireland   -     -     -     -     -     -     17,637   17,637
Netherlands   -     -     -     -     88   82   8,122   7,661
United States   -     -     -     -     346   282   2,742   2,232
Total Proved   1,942   1,832   8,210   7,640   15,229   12,192   160,706   146,789
                                 
                                 
    Light Crude Oil & Medium Crude Oil   Heavy Oil   Tight Oil   Conventional Natural Gas
    Gross (2)   Net (2)   Gross (2)   Net (2)   Gross (2)   Net (2)   Gross (2)   Net (2)
    (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (MMcf)   (MMcf)
Probable (4)                                
Australia   3,700   3,700   -   -   -   -   -   -
Canada   14,786   12,565   3   3   3   2   132,676   120,460
France   21,325   19,814   -   -   -   -   1,559   1,505
Germany   -   -   -   -   -   -   17,999   14,999
Ireland   -   -   -   -   -   -   47,405   47,405
Netherlands   -   -   -   -   -   -   48,688   43,700
United States   3,818   3,131   -   -   -   -   4,378   3,590
Total Probable   43,629   39,210   3   3   3   2   252,705   231,659
                                 
                                 
    Shale Gas   Coal Bed Methane   Natural Gas Liquids   BOE
    Gross (2)   Net (2)   Gross (2)   Net (2)   Gross (2)   Net (2)   Gross   Net
    (MMcf)   (MMcf)   (MMcf)   (MMcf)   (Mbbl)   (Mbbl)   (Mboe)   (Mboe)
Probable                                
Australia   -   -   -   -   -   -   3,700   3,700
Canada   475   447   4,917   4,628   12,751   10,144   50,554   43,637
France   -   -   -   -   -   -   21,585   20,065
Germany   -   -   -   -   -   -   3,000   2,500
Ireland   -   -   -   -   -   -   7,901   7,901
Netherlands   -   -   -   -   83   66   8,198   7,349
United States   -   -   -   -   698   572   5,246   4,301
Total Probable   475   447   4,917   4,628   13,532   10,782   100,184   89,453
                                 
                                 
    Light Crude Oil & Medium Crude Oil   Heavy Oil   Tight Oil   Conventional Natural Gas
    Gross (2)   Net (2)   Gross (2)   Net (2)   Gross (2)   Net (2)   Gross (2)   Net (2)
    (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (MMcf)   (MMcf)
Proved Plus Probable (3) (4)                                
Australia   17,465   17,465   -     -     -     -     -     -  
Canada   37,757   32,647   12   12   13   10   322,787   292,825
France   62,046   57,358   -     -     -     -     9,394   8,814
Germany   -     -     -     -     -     -     49,499   41,988
Ireland   -     -     -     -     -     -     153,226   153,226
Netherlands   -     -     -     -     -     -     96,887   89,174
United States   5,852   4,786   -     -     -     -     6,548   5,356
Total Proved Plus Probable   123,120   112,256   12   12   13   10   638,342   591,383
                                 
                                 
    Shale Gas   Coal Bed Methane   Natural Gas Liquids   BOE
    Gross (2)   Net (2)   Gross (2)   Net (2)   Gross (2)   Net (2)   Gross   Net
    (MMcf)   (MMcf)   (MMcf)   (MMcf)   (Mbbl)   (Mbbl)   (Mboe)   (Mboe)
Proved Plus Probable (3) (4)                                
Australia   -     -     -     -     -     -     17,465   17,465
Canada   2,417   2,279   13,127   12,268   27,546   21,972   121,717   105,870
France   -     -     -     -     -     -     63,612   58,827
Germany   -     -     -     -     -     -     8,250   6,999
Ireland   -     -     -     -     -     -     25,538   25,538
Netherlands   -     -     -     -     171   148   16,320   15,010
United States   -     -     -     -     1,044   854   7,988   6,533
Total Proved Plus Probable   2,417   2,279   13,127   12,268   28,761   22,974   260,890   236,242
 
Notes:
(1)  The pricing assumptions used in the GLJ Report with respect to net present value of future net revenue (forecast) as well as the inflation rates used for operating and capital costs are set forth below.  See "Forecast Prices used in Estimates".  The NGL price is an aggregate of the individual natural gas liquids prices used in the Total Proved plus Probable evaluation.  GLJ is an independent qualified reserves evaluator appointed pursuant to NI 51-101.
(2)  "Gross Reserves" are Vermilion's working interest (operating or non-operating) share before deduction of royalties and without including any royalty interests of Vermilion.  "Net Reserves" are Vermilion's working interest (operating or non-operating) share after deduction of royalty obligations, plus Vermilion's royalty interests in reserves.
(3)  "Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable.  It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.
(4)  "Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves.  It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.
(5)  "Developed" reserves are those reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure (e.g. when compared to the cost of drilling a well) to put the reserves on production.
(6)  "Developed Producing" reserves are those reserves that are expected to be recovered from completion intervals open at the time of the estimate.  These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty.
(7)  "Developed Non-Producing" reserves are those reserves that either have not been on production, or have previously been on production, but are shut in, and the date of resumption of production is unknown.
(8)  "Undeveloped" reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of production.  They must fully meet the requirements of the reserves classification (proved, probable, possible) to which they are assigned.

Table 5: Net Present Values of Future Net Revenue - Based on Forecast Prices and Costs (1)

  Before Deducting Future Income Taxes Discounted At   After Deducting Future Income Taxes Discounted At
(M$)   0%   5%   10%   15%   20%   0%   5%   10%   15%   20%
Proved Developed Producing (2) (4) (5)                                        
Australia   2,347   129,206   168,558   175,898   171,717   124,988   173,769   178,900   170,295   158,300
Canada   949,037   750,567   619,559   528,638   462,575   949,037   750,567   619,559   528,638   462,575
France   1,798,973   1,255,682   953,329   767,459   643,532   1,517,541   1,074,705   821,780   664,015   557,940
Germany   43,971   38,938   34,820   31,467   28,720   43,971   38,938   34,820   31,467   28,720
Ireland   552,363   501,468   439,666   387,319   345,603   552,363   501,468   439,666   387,319   345,603
Netherlands   83,154   94,117   99,646   102,200   103,013   64,192   75,617   81,576   84,532   85,720
United States   16,290   12,359   9,959   8,387   7,290   16,290   12,359   9,959   8,387   7,290
Total Proved Developed Producing   3,446,135   2,782,337   2,325,537   2,001,368   1,762,450   3,268,382   2,627,423   2,186,260   1,874,653   1,646,148
Proved Developed Non-Producing (2) (4) (6)                                        
Australia   -     -     -     -     -     -     -     -     -     -  
Canada   104,042   71,099   54,809   45,013   38,420   104,042   71,099   54,809   45,013   38,420
France   90,457   62,628   45,934   35,314   28,159   58,901   40,465   29,248   22,088   17,265
Germany   25,871   19,029   14,433   11,275   9,044   25,871   19,029   14,433   11,275   9,044
Ireland   92,735   62,194   44,189   32,997   25,688   92,735   62,194   44,189   32,997   25,688
Netherlands   49,823   39,122   30,708   24,196   19,156   41,346   30,978   22,865   16,628   11,839
United States   9,355   5,641   3,488   2,150   1,264   9,355   5,641   3,488   2,150   1,264
Total Proved Developed Non-Producing   372,283   259,713   193,561   150,945   121,731   332,250   229,406   169,032   130,151   103,520
Proved Undeveloped (2) (7)                                        
Australia   90,351   65,761   47,675   34,243   24,141   54,095   38,796   27,698   19,530   13,425
Canada   489,912   322,128   216,629   147,559   100,575   394,990   268,530   185,169   128,464   88,643
France   195,493   141,793   105,874   81,079   63,249   126,807   88,335   62,501   44,867   32,357
Germany   6,456   3,478   1,746   724   117   6,456   3,478   1,746   724   117
Ireland   -     -     -     -     -     -     -     -     -     -  
Netherlands   -     -     -     -     -     -     -     -     -     -  
United States   33,881   15,244   5,265   (415)   (3,816)   33,881   15,244   5,265   (415)   (3,816)
Total Proved Undeveloped   816,093   548,404   377,189   263,190   184,266   616,229   414,383   282,379   193,170   130,726
Proved (2)                                        
Australia   92,698   194,967   216,233   210,141   195,858   179,083   212,565   206,598   189,825   171,725
Canada   1,542,991   1,143,794   890,997   721,210   601,570   1,448,069   1,090,196   859,537   702,115   589,638
France   2,084,923   1,460,103   1,105,137   883,852   734,940   1,703,249   1,203,505   913,529   730,970   607,562
Germany   76,298   61,445   50,999   43,466   37,881   76,298   61,445   50,999   43,466   37,881
Ireland   645,098   563,662   483,855   420,316   371,291   645,098   563,662   483,855   420,316   371,291
Netherlands   132,977   133,239   130,354   126,396   122,169   105,538   106,595   104,441   101,160   97,559
United States   59,526   33,244   18,712   10,122   4,738   59,526   33,244   18,712   10,122   4,738
Total Proved   4,634,511   3,590,454   2,896,287   2,415,503   2,068,447   4,216,861   3,271,212   2,637,671   2,197,974   1,880,394
Probable (3)                                        
Australia   233,918   195,941   160,242   132,868   112,579   131,359   109,293   88,489   72,597   60,886
Canada   1,259,521   782,374   525,575   374,090   277,970   925,820   572,010   383,568   273,386   203,911
France   1,368,130   737,715   464,855   321,653   235,825   898,657   464,533   277,847   181,362   124,539
Germany   58,777   38,397   26,546   19,305   14,655   58,777   38,397   26,546   19,305   14,655
Ireland   444,344   271,776   182,158   131,596   100,818   444,344   271,776   182,158   131,596   100,818
Netherlands   259,073   192,535   149,984   121,255   100,904   213,280   150,798   111,666   85,850   68,004
United States   169,572   89,698   51,373   30,603   18,222   111,879   59,733   33,482   18,708   9,648
Total Probable   3,793,335   2,308,436   1,560,733   1,131,370   860,973   2,784,116   1,666,540   1,103,756   782,804   582,461
Proved Plus Probable (2) (3)                                        
Australia   326,616   390,908   376,475   343,009   308,437   310,442   321,858   295,087   262,422   232,611
Canada   2,802,512   1,926,168   1,416,572   1,095,300   879,540   2,373,889   1,662,206   1,243,105   975,501   793,549
France   3,453,053   2,197,818   1,569,992   1,205,505   970,765   2,601,906   1,668,038   1,191,376   912,332   732,101
Germany   135,075   99,842   77,545   62,771   52,536   135,075   99,842   77,545   62,771   52,536
Ireland   1,089,442   835,438   666,013   551,912   472,109   1,089,442   835,438   666,013   551,912   472,109
Netherlands   392,050   325,774   280,338   247,651   223,073   318,818   257,393   216,107   187,010   165,563
United States   229,098   122,942   70,085   40,725   22,960   171,405   92,977   52,194   28,830   14,386
Total Proved Plus Probable   8,427,846   5,898,890   4,457,020   3,546,873   2,929,420   7,000,977   4,937,752   3,741,427   2,980,778   2,462,855
 
Notes:
(1)  The pricing assumptions used in the GLJ Report  with respect to net present value of future net revenue (forecast) as well as the inflation rates used for operating and capital costs are set forth below.  See "Forecast Prices used in Estimates".  The NGL price is an aggregate of the individual natural gas liquids prices used in the Total Proved plus Probable evaluation.  GLJ is an independent qualified reserves evaluator appointed pursuant to NI 51-101.
(2)  "Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable.  It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.
(3)  "Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves.  It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.
(4)  "Developed" reserves are those reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure (e.g. when compared to the cost of drilling a well) to put the reserves on production.
(5)  "Developed Producing" reserves are those reserves that are expected to be recovered from completion intervals open at the time of the estimate.  These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty.
(6)  "Developed Non-Producing" reserves are those reserves that either have not been on production, or have previously been on production, but are shut in, and the date of resumption of production is unknown.
(7)  "Undeveloped" reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of production.  They must fully meet the requirements of the reserves classification (proved, probable, possible) to which they are assigned.

Table 6: Total Future Net Revenue (Undiscounted) Based on Forecast Prices and Costs (1)

                    Abandonment   Future Net       Future Net
                Capital   and   Revenue       Revenue
            Operating   Development   Reclamation   Before   Future   After
(M$)   Revenue   Royalties   Costs   Costs   Costs   Income Taxes   Income Taxes   Income Taxes
Proved (2)                                
Australia   1,279,689   -     765,611   164,897   256,483   92,698   (86,385)   179,083
Canada   3,444,744   430,994   956,472   429,587   84,700   1,542,991   94,922   1,448,069
France   3,739,055   286,952   1,054,237   142,825   170,118   2,084,923   381,674   1,703,249
Germany   243,200   34,472   121,828   7,557   3,045   76,298   -     76,298
Ireland   945,039   -     196,807   29,121   74,013   645,098   -     645,098
Netherlands   419,120   20,930   153,011   38,411   73,791   132,977   27,439   105,538
United States   193,175   53,303   33,559   44,764   2,023   59,526   -     59,526
Total Proved   10,264,022   826,651   3,281,525   857,162   664,173   4,634,511   417,650   4,216,861
Proved Plus Probable (2) (3)                                
Australia   1,660,324   -     901,981   164,950   266,777   326,616   16,174   310,442
Canada   6,173,958   832,588   1,597,976   830,126   110,756   2,802,512   428,623   2,373,889
France   6,025,272   448,246   1,560,955   340,273   222,745   3,453,053   851,147   2,601,906
Germany   408,139   61,573   199,859   7,594   4,038   135,075   -     135,075
Ireland   1,487,330   -     294,754   29,121   74,013   1,089,442   -     1,089,442
Netherlands   908,049   67,612   274,464   87,472   86,451   392,050   73,232   318,818
United States   596,459   162,300   91,475   109,001   4,585   229,098   57,693   171,405
Total Proved Plus Probable   17,259,531   1,572,319   4,921,464   1,568,537   769,365   8,427,846   1,426,869   7,000,977
 
Notes:
(1)  The pricing assumptions used in the GLJ Report with respect to net present value of future net revenue (forecast) as well as the inflation rates used for operating and capital costs are set forth below.  See "Forecast Prices used in Estimates".  The NGL price is an aggregate of the individual natural gas liquids prices used in the Total Proved plus Probable evaluation.  GLJ is an independent qualified reserves evaluator appointed pursuant to NI 51-101.
(2)  "Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable.  It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.
(3)  "Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves.  It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.

Table 7: Future Net Revenue by Production Group Based on Forecast Prices and Costs (1)

      Future Net Revenue      
      Before Income Taxes (2)      
      (Discounted at 10% Per Year)     Unit Value
Proved Developed Producing     (M$)     ($/boe)
Light crude oil & medium crude oil (3)     1,587,327     25.88
Heavy Oil (3)     216     12.36
Natural gas (4)     733,875     18.69
Shale Gas     2,860     7.26
Coal Bed Methane     1,259     2.62
Total Proved Developed Producing     2,325,537     22.91
Proved Developed Non-Producing            
Light crude oil & medium crude oil (3)     66,158     20.41
Heavy Oil (3)     -       -  
Natural gas (4)     126,536     14.41
Shale Gas     -       -  
Coal Bed Methane     867     3.17
Total Proved Developed Non-Producing     193,561     15.74
Proved Undeveloped            
Light crude oil & medium crude oil (3)     259,816     13.92
Heavy Oil (3)     -       -  
Natural gas (4)     116,627     8.44
Shale Gas     -       -  
Coal Bed Methane     746     1.44
Total Proved Undeveloped     377,189     11.43
Proved            
Light crude oil & medium crude oil (3)     1,913,301     22.97
Heavy Oil (3)     216     12.42
Natural gas (4)     977,038     15.81
Shale Gas     2,860     7.28
Coal Bed Methane     2,872     2.26
Total Proved     2,896,287     19.73
Probable            
Light crude oil & medium crude oil (3)     992,703     20.85
Heavy Oil (3)     87     15.91
Natural gas (4)     565,389     13.80
Shale Gas     691     7.26
Coal Bed Methane     1,863     2.26
Total Probable     1,560,733     19.73
Proved Plus Probable            
Light crude oil & medium crude oil (3)     2,906,004     22.21
Heavy Oil (3)     303     13.30
Natural gas (4)     1,542,427     15.00
Shale Gas     3,551     7.33
Coal Bed Methane     4,735     2.31
Total Proved Plus Probable     4,457,020     18.87
 
Notes:
(1)  The pricing assumptions used in the GLJ Report with respect to net present value of future net revenue (forecast) as well as the inflation rates used for operating and capital costs are set forth below.  See "Forecast Prices used in Estimates".  The NGL price is an aggregate of the individual natural gas liquids prices used in the Total Proved plus Probable evaluation.  GLJ is an independent qualified reserves evaluator appointed pursuant to NI 51-101.
(2)  Other Company revenue and costs not related to a specific production group have been allocated proportionately to production groups.  Unit values are based on Company Net Reserves.  Net present value of reserves categories are an approximation based on major products.
(3)  Including solution gas and other by-products.
(4)  Including by-products but excluding solution gas.

Reconciliations of Changes in Reserves

The following tables set forth a reconciliation of the changes in Vermilion's gross light and medium crude oil, heavy oil and associated and non-associated gas (combined) reserves as at December 31, 2015 compared to such reserves as at December 31, 2014.

Table 8: Reconciliation of Company Gross Reserves by Principal Product Type - Based on Forecast Prices and Costs (3)

              Light Crude Oil &                        
AUSTRALIA   Total Oil (4)   Medium Crude Oil   Heavy Oil   Tight Oil
            Proved +           Proved +           Proved +           Proved +
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable
Factors   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)
At December 31, 2014   12,534   5,449   17,983   12,534   5,449   17,983   -     -     -     -     -     -  
Discoveries   -     -     -     -     -     -     -     -     -     -     -     -  
Extensions & Improved Recovery   500   50   550   500   50   550   -     -     -     -     -     -  
Technical Revisions   3,087   (1,799)   1,288   3,087   (1,799)   1,288   -     -     -     -     -     -  
Acquisitions   -     -     -     -     -     -     -     -     -     -     -     -  
Dispositions   -     -     -     -     -     -     -     -     -     -     -     -  
Economic Factors   -     -     -     -     -     -     -     -     -     -     -     -  
Production   (2,356)   -     (2,356)   (2,356)   -     (2,356)   -     -     -     -     -     -  
At December 31, 2015   13,765   3,700   17,465   13,765   3,700   17,465   -   -   -   -   -   -
                                                 
                                                 
    Total Gas (4)   Conventional Natural Gas   Coal Bed Methane (5)   Shale Natural Gas (5)
            Proved +           Proved +           Proved +           Proved +
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable
Factors   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)
At December 31, 2014   -     -     -     -     -     -     -     -     -     -     -     -  
Discoveries   -     -     -     -     -     -     -     -     -     -     -     -  
Extensions & Improved Recovery   -     -     -     -     -     -     -     -     -     -     -     -  
Technical Revisions   -     -     -     -     -     -     -     -     -     -     -     -  
Acquisitions   -     -     -     -     -     -     -     -     -     -     -     -  
Dispositions   -     -     -     -     -     -     -     -     -     -     -     -  
Economic Factors   -     -     -     -     -     -     -     -     -     -     -     -  
Production   -     -     -     -     -     -     -     -     -     -     -     -  
At December 31, 2015   -     -     -     -     -     -     -     -     -     -     -     -  
                                                 
                                                 
    Natural Gas Liquids   BOE                        
            Proved +           Proved +                        
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable                        
Factors   (Mbbl)   (Mbbl)   (Mbbl)   (Mboe)   (Mboe)   (Mboe)                        
At December 31, 2014   -     -     -     12,534   5,449   17,983                        
Discoveries   -     -     -     -     -     -                          
Extensions & Improved Recovery   -     -     -     500   50   550                        
Technical Revisions   -     -     -     3,087   (1,799)   1,288                        
Acquisitions   -     -     -     -     -     -                          
Dispositions   -     -     -     -     -     -                          
Economic Factors   -     -     -     -     -     -                          
Production   -     -     -     (2,356)   -     (2,356)                        
At December 31, 2015   -     -     -     13,765   3,700   17,465                        
                                                 
                                                 
                Light Crude Oil &                        
CANADA   Total Oil (4)   Medium Crude Oil   Heavy Oil   Tight Oil
            Proved +           Proved +           Proved +           Proved +
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable
Factors   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)
At December 31, 2014   27,488   14,799   42,287   27,478   14,797   42,275   10   2   12   -     -     -  
Discoveries   -     -     -     -     -     -     -     -     -     -     -     -  
Extensions & Improved Recovery   1,245   2,541   3,786   1,245   2,541   3,786   -     -     -     -     -     -  
Technical Revisions   (283)   (825)   (1,108)   (295)   (828)   (1,123)   (1)   1   -     13   3   16
Acquisitions   -     -     -     -     -     -     -     -     -     -     -     -  
Dispositions   (9)   (4)   (13)   (9)   (4)   (13)   -     -     -     -     -     -  
Economic Factors   (1,970)   (1,720)   (3,690)   (1,970)   (1,720)   (3,690)   -     -     -     -     -     -  
Production   (3,481)   -     (3,481)   (3,478)   -     (3,478)   -     -     -     (3)   -     (3)
At December 31, 2015   22,990   14,792   37,782   22,971   14,786   37,757   9   3   12   10   3   13
                                                 
                                                 
    Total Gas (4)   Conventional Natural Gas   Coal Bed Methane (5)   Shale Natural Gas (5)
            Proved +           Proved +           Proved +           Proved +
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable
Factors   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)
At December 31, 2014   177,414   141,032   318,446   153,592   130,581   284,173   22,260   10,031   32,291   1,562   420   1,982
Discoveries   -     -     -     -     -     -     -     -     -     -     -     -  
Extensions & Improved Recovery   56,482   22,244   78,726   56,482   22,244   78,726   -     -     -     -     -     -  
Technical Revisions   4,325   (7,773)   (3,448)   3,505   (7,828)   (4,323)   -     -     -     820   55   875
Acquisitions   1,933   10,824   12,757   1,933   10,824   12,757   -     -     -     -     -     -  
Dispositions   (39)   (8,944)   (8,983)   (39)   (8,944)   (8,983)   -     -     -     -     -     -  
Economic Factors   (13,736)   (19,315)   (33,051)   (2,350)   (14,201)   (16,551)   (11,386)   (5,114)   (16,500)   -     -     -  
Production   (26,116)   -     (26,116)   (23,012)   -     (23,012)   (2,664)   -     (2,664)   (440)   -     (440)
At December 31, 2015   200,263   138,068   338,331   190,111   132,676   322,787   8,210   4,917   13,127   1,942   475   2,417
                                                 
                                                 
    Natural Gas Liquids   BOE                        
            Proved +           Proved +                        
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable                        
Factors   (Mbbl)   (Mbbl)   (Mbbl)   (Mboe)   (Mboe)   (Mboe)                        
At December 31, 2014   13,550   11,331   24,881   70,608   49,635   120,243                        
Discoveries   -     -     -     -     -     -                          
Extensions & Improved Recovery   3,059   2,749   5,808   13,718   8,997   22,715                        
Technical Revisions   (410)   (2,077)   (2,487)   28   (4,197)   (4,169)                        
Acquisitions   187   1,538   1,725   509   3,342   3,851                        
Dispositions   (2)   (193)   (195)   (18)   (1,688)   (1,705)                        
Economic Factors   (95)   (597)   (692)   (4,354)   (5,536)   (9,891)                        
Production   (1,494)   -     (1,494)   (9,328)   -     (9,328)                        
At December 31, 2015   14,795   12,751   27,546   71,162   50,554   121,717                        
                                                 
                                                 
                Light Crude Oil &                        
FRANCE   Total Oil (4)   Medium Crude Oil   Heavy Oil   Tight Oil
            Proved +           Proved +           Proved +           Proved +
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable
Factors   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)
At December 31, 2014   35,602   20,288   55,890   35,602   20,288   55,890   -     -     -     -     -     -  
Discoveries   -     -     -     -     -     -     -     -     -     -     -     -  
Extensions & Improved Recovery   4,328   2,466   6,794   4,328   2,466   6,794   -     -     -     -     -     -  
Technical Revisions   5,268   (1,429)   3,839   5,268   (1,429)   3,839   -     -     -     -     -     -  
Acquisitions   -     -     -     -     -     -     -     -     -     -     -     -  
Dispositions   -     -     -     -     -     -     -     -     -     -     -     -  
Economic Factors   -     -     -     -     -     -     -     -     -     -     -     -  
Production   (4,477)   -     (4,477)   (4,477)   -     (4,477)   -     -     -     -     -     -  
At December 31, 2015   40,721   21,325   62,046   40,721   21,325   62,046   -     -     -     -     -     -  
                                                 
                                                 
    Total Gas (4)   Conventional Natural Gas   Coal Bed Methane (5)   Shale Natural Gas (5)
            Proved +           Proved +           Proved +           Proved +
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable
Factors   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)
At December 31, 2014   9,875   2,582   12,457   9,875   2,582   12,457   -     -     -     -     -     -  
Discoveries   -     -     -     -     -     -     -     -     -     -     -     -  
Extensions & Improved Recovery   -     -     -     -     -     -     -     -     -     -     -     -  
Technical Revisions   -     -     -     -     -     -     -     -     -     -     -     -  
Acquisitions   -     -     -     -     -     -     -     -     -     -     -     -  
Dispositions   -     -     -     -     -     -     -     -     -     -     -     -  
Economic Factors   (1,686)   (1,023)   (2,709)   (1,686)   (1,023)   (2,709)   -     -     -     -     -     -  
Production   (354)   -     (354)   (354)   -     (354)   -     -     -     -     -     -  
At December 31, 2015   7,835   1,559   9,394   7,835   1,559   9,394   -     -     -     -     -     -  
                                                 
                                                 
    Natural Gas Liquids   BOE                        
            Proved +           Proved +                        
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable                        
Factors   (Mbbl)   (Mbbl)   (Mbbl)   (Mboe)   (Mboe)   (Mboe)                        
At December 31, 2014   -     -     -     37,249   20,719   57,967                        
Discoveries   -     -     -     -     -     -                          
Extensions & Improved Recovery   -     -     -     4,328   2,465   6,794                        
Technical Revisions   -     -     -     5,268   (1,429)   3,839                        
Acquisitions   -     -     -     -     -     -                          
Dispositions   -     -     -     -     -     -                          
Economic Factors   -     -     -     (281)   (171)   (452)                        
Production   -     -     -     (4,537)   -     (4,537)                        
At December 31, 2015   -     -     -     42,027   21,585   63,612                        
                                                 
                                                 
                Light Crude Oil &                        
GERMANY   Total Oil (4)   Medium Crude Oil   Heavy Oil   Tight Oil
            Proved +           Proved +           Proved +           Proved +
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable
Factors   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)
At December 31, 2014   -     -     -     -     -     -     -     -     -     -     -     -  
Discoveries   -     -     -     -     -     -     -     -     -     -     -     -  
Extensions & Improved Recovery   -     -     -     -     -     -     -     -     -     -     -     -  
Technical Revisions   -     -     -     -     -     -     -     -     -     -     -     -  
Acquisitions   -     -     -     -     -     -     -     -     -     -     -     -  
Dispositions   -     -     -     -     -     -     -     -     -     -     -     -  
Economic Factors   -     -     -     -     -     -     -     -     -     -     -     -  
Production   -     -     -     -     -     -     -     -     -     -     -     -  
At December 31, 2015   -     -     -     -     -     -     -     -     -     -     -     -  
                                                 
                                                 
    Total Gas (4)   Conventional Natural Gas   Coal Bed Methane (5)   Shale Natural Gas (5)
            Proved +           Proved +           Proved +           Proved +
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable
Factors   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)
At December 31, 2014   40,258   21,301   61,559   40,258   21,301   61,559   -     -     -     -     -     -  
Discoveries   -     -     -     -     -     -     -     -     -     -     -     -  
Extensions & Improved Recovery   2,546   (2,546)   -     2,546   (2,546)   -     -     -     -     -     -     -  
Technical Revisions   (5,543)   (756)   (6,299)   (5,543)   (756)   (6,299)   -     -     -     -     -     -  
Acquisitions   -     -     -     -     -     -     -     -     -     -     -     -  
Dispositions   -     -     -     -     -     -     -     -     -     -     -     -  
Economic Factors   -     -     -     -     -     -     -     -     -     -     -     -  
Production   (5,761)   -     (5,761)   (5,761)   -     (5,761)   -     -     -     -     -     -  
At December 31, 2015   31,500   17,999   49,499   31,500   17,999   49,499   -     -     -     -     -     -  
                                                 
                                                 
    Natural Gas Liquids   BOE                        
            Proved +           Proved +                        
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable                        
Factors   (Mbbl)   (Mbbl)   (Mbbl)   (Mboe)   (Mboe)   (Mboe)                        
At December 31, 2014   -     -     -     6,710   3,550   10,260                        
Discoveries   -     -     -     -     -     -                          
Extensions & Improved Recovery   -     -     -     424   (424)   -                          
Technical Revisions   -     -     -     (924)   (126)   (1,050)                        
Acquisitions   -     -     -     -     -     -                          
Dispositions   -     -     -     -     -     -                          
Economic Factors   -     -     -     -     -     -                          
Production   -     -     -     (960)   -     (960)                        
At December 31, 2015   -     -     -     5,250   3,000   8,250                        
                                                 
                                                 
                Light Crude Oil &                        
IRELAND   Total Oil (4)   Medium Crude Oil   Heavy Oil   Tight Oil
            Proved +           Proved +           Proved +           Proved +
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable
Factors   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)
At December 31, 2014   -     -     -     -     -     -     -     -     -     -     -     -  
Discoveries   -     -     -     -     -     -     -     -     -     -     -     -  
Extensions & Improved Recovery   -     -     -     -     -     -     -     -     -     -     -     -  
Technical Revisions   -     -     -     -     -     -     -     -     -     -     -     -  
Acquisitions   -     -     -     -     -     -     -     -     -     -     -     -  
Dispositions   -     -     -     -     -     -     -     -     -     -     -     -  
Economic Factors   -     -     -     -     -     -     -     -     -     -     -     -  
Production   -     -     -     -     -     -     -     -     -     -     -     -  
At December 31, 2015   -     -     -     -     -     -     -     -     -     -     -     -  
                                                 
                                                 
    Total Gas (4)   Conventional Natural Gas   Coal Bed Methane (5)   Shale Natural Gas (5)
            Proved +           Proved +           Proved +           Proved +
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable
Factors   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)
At December 31, 2014   105,931   38,707   144,638   105,931   38,707   144,638   -     -     -     -     -     -  
Discoveries   -     -     -     -     -     -     -     -     -     -     -     -  
Extensions & Improved Recovery   -     -     -     -     -     -     -     -     -     -     -     -  
Technical Revisions   (99)   8,698   8,599   (99)   8,698   8,599   -     -     -     -     -     -  
Acquisitions   -     -     -     -     -     -     -     -     -     -     -     -  
Dispositions   -     -     -     -     -     -     -     -     -     -     -     -  
Economic Factors   -     -     -     -     -     -     -     -     -     -     -     -  
Production   (11)   -     (11)   (11)   -     (11)   -     -     -     -     -     -  
At December 31, 2015   105,821   47,405   153,226   105,821   47,405   153,226   -     -     -     -     -     -  
                                                 
                                                 
    Natural Gas Liquids   BOE                        
            Proved +           Proved +                        
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable                        
Factors   (Mbbl)   (Mbbl)   (Mbbl)   (Mboe)   (Mboe)   (Mboe)                        
At December 31, 2014   -     -     -     17,655   6,451   24,106                        
Discoveries   -     -     -     -     -     -                          
Extensions & Improved Recovery   -     -     -     -     -     -                          
Technical Revisions   -     -     -     (17)   1,450   1,434                        
Acquisitions   -     -     -     -     -     -                          
Dispositions   -     -     -     -     -     -                          
Economic Factors   -     -     -     -     -     -                          
Production   -     -     -     (2)   -     (2)                        
At December 31, 2015   -     -     -     17,637   7,901   25,538                        
                                                 
                                                 
                Light Crude Oil &                        
NETHERLANDS   Total Oil (4)   Medium Crude Oil   Heavy Oil   Tight Oil
            Proved +           Proved +           Proved +           Proved +
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable
Factors   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)
At December 31, 2014   -     -     -     -     -     -     -     -     -     -     -     -  
Discoveries   -     -     -     -     -     -     -     -     -     -     -     -  
Extensions & Improved Recovery   -     -     -     -     -     -     -     -     -     -     -     -  
Technical Revisions   -     -     -     -     -     -     -     -     -     -     -     -  
Acquisitions   -     -     -     -     -     -     -     -     -     -     -     -  
Dispositions   -     -     -     -     -     -     -     -     -     -     -     -  
Economic Factors   -     -     -     -     -     -     -     -     -     -     -     -  
Production   -     -     -     -     -     -     -     -     -     -     -     -  
At December 31, 2015   -     -     -     -     -     -     -     -     -     -     -     -  
                                                 
                                                 
    Total Gas (4)   Conventional Natural Gas   Coal Bed Methane (5)   Shale Natural Gas (5)
            Proved +           Proved +           Proved +           Proved +
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable
Factors   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)
At December 31, 2014   37,155   47,076   84,231   37,155   47,076   84,231   -     -     -     -     -     -  
Discoveries   17,405   2,880   20,285   17,405   2,880   20,285   -     -     -     -     -     -  
Extensions & Improved Recovery   5,736   4,366   10,102   5,736   4,366   10,102   -     -     -     -     -     -  
Technical Revisions   4,242   (5,634)   (1,392)   4,242   (5,634)   (1,392)   -     -     -     -     -     -  
Acquisitions   -     -     -     -     -     -     -     -     -     -     -     -  
Dispositions   -     -     -     -     -     -     -     -     -     -     -     -  
Economic Factors   -     -     -     -     -     -     -     -     -     -     -     -  
Production   (16,339)   -     (16,339)   (16,339)   -     (16,339)   -     -     -     -     -     -  
At December 31, 2015   48,199   48,688   96,887   48,199   48,688   96,887   -     -     -     -     -     -  
                                                 
                                                 
    Natural Gas Liquids   BOE                        
            Proved +           Proved +                        
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable                        
Factors   (Mbbl)   (Mbbl)   (Mbbl)   (Mboe)   (Mboe)   (Mboe)                        
At December 31, 2014   54   103   157   6,247   7,949   14,196                        
Discoveries   39   7   46   2,940   487   3,427                        
Extensions & Improved Recovery   7   6   13   963   734   1,697                        
Technical Revisions   24   (33)   (9)   731   (972)   (241)                        
Acquisitions   -     -     -     -     -     -                          
Dispositions   -     -     -     -     -     -                          
Economic Factors   -     -     -     -     -     -                          
Production   (36)   -     (36)   (2,759)   -     (2,758)                        
At December 31, 2015   88   83   171   8,122   8,198   16,320                        
                                                 
                                                 
                Light Crude Oil &                        
UNITED STATES   Total Oil (4)   Medium Crude Oil   Heavy Oil   Tight Oil
            Proved +           Proved +           Proved +           Proved +
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable
Factors   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)
At December 31, 2014   449   1,338   1,787   449   1,338   1,787   -     -     -     -     -     -  
Discoveries   -     -     -     -     -     -     -     -     -     -     -     -  
Extensions & Improved Recovery   1,367   1,324   2,691   1,367   1,324   2,691   -     -     -     -     -     -  
Technical Revisions   106   370   476   106   370   476   -     -     -     -     -     -  
Acquisitions   196   786   982   196   786   982   -     -     -     -     -     -  
Dispositions   -     -     -     -     -     -     -     -     -     -     -     -  
Economic Factors   -     -     -     -     -     -     -     -     -     -     -     -  
Production   (84)   -     (84)   (84)   -     (84)   -     -     -     -     -     -  
At December 31, 2015   2,034   3,818   5,852   2,034   3,818   5,852   -     -     -     -     -     -  
                                                 
                                                 
    Total Gas (4)   Conventional Natural Gas   Coal Bed Methane (5)   Shale Natural Gas (5)
            Proved +           Proved +           Proved +           Proved +
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable
Factors   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)
At December 31, 2014   243   1,402   1,645   243   1,402   1,645   -     -     -     -     -     -  
Discoveries   -     -     -     -     -     -     -     -     -     -     -     -  
Extensions & Improved Recovery   1,453   1,569   3,022   1,453   1,569   3,022   -     -     -     -     -     -  
Technical Revisions   274   507   781   274   507   781   -     -     -     -     -     -  
Acquisitions   220   900   1,120   220   900   1,120   -     -     -     -     -     -  
Dispositions   -     -     -     -     -     -     -     -     -     -     -     -  
Economic Factors   -     -     -     -     -     -     -     -     -     -     -     -  
Production   (18)   -     (18)   (18)   -     (18)   -     -     -     -     -     -  
At December 31, 2015   2,170   4,378   6,548   2,170   4,378   6,548   -     -     -     -     -     -  
                                                 
                                                 
    Natural Gas Liquids   BOE                        
            Proved +           Proved +                        
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable                        
Factors   (Mbbl)   (Mbbl)   (Mbbl)   (Mboe)   (Mboe)   (Mboe)                        
At December 31, 2014   10   58   68   500   1,630   2,129                        
Discoveries   -     -     -     -     -     -                          
Extensions & Improved Recovery   233   250   483   1,842   1,836   3,678                        
Technical Revisions   72   247   319   223   702   925                        
Acquisitions   35   143   178   267   1,079   1,346                        
Dispositions   -     -     -     -     -     -                          
Economic Factors   -     -     -     -     -     -                          
Production   (3)   -     (3)   (90)   -     (90)                        
At December 31, 2015   346   698   1,044   2,742   5,246   7,988                        
                                                 
                                                 
                Light Crude Oil &                        
TOTAL COMPANY   Total Oil (4)   Medium Crude Oil   Heavy Oil   Tight Oil
            Proved +           Proved +           Proved +           Proved +
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable
Factors   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)   (Mbbl)
At December 31, 2014   76,073   41,874   117,947   76,063   41,872   117,935   10   2   12   -     -     -  
Discoveries   -     -     -     -     -     -     -     -     -     -     -     -  
Extensions & Improved Recovery   7,440   6,381   13,821   7,440   6,381   13,821   -     -     -     -     -     -  
Technical Revisions   8,178   (3,683)   4,496   8,166   (3,686)   4,480   (1)   1   -     13   3   16
Acquisitions   196   786   982   196   786   982   -     -     -     -     -     -  
Dispositions   (9)   (4)   (13)   (9)   (4)   (13)   -     -     -     -     -     -  
Economic Factors   (1,970)   (1,720)   (3,690)   (1,970)   (1,720)   (3,690)   -     -     -     -     -     -  
Production   (10,398)   -     (10,398)   (10,395)   -     (10,395)   -     -     -     (3)   -     (3)
At December 31, 2015   79,510   43,635   123,145   79,491   43,629   123,120   9   3   12   10   3   13
                                                 
                                                 
    Total Gas (4)   Conventional Natural Gas   Coal Bed Methane (5)   Shale Natural Gas (5)
            Proved +           Proved +           Proved +           Proved +
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable   Proved   Probable   Probable
Factors   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)   (MMcf)
At December 31, 2014   370,876   252,100   622,976   347,054   241,649   588,703   22,260   10,031   32,291   1,562   420   1,982
Discoveries   17,405   2,880   20,285   17,405   2,880   20,285   -     -     -     -     -     -  
Extensions & Improved Recovery   66,217   25,633   91,850   66,218   25,633   91,851   -     -     -     -     -     -  
Technical Revisions   3,199   (4,958)   (1,760)   2,379   (5,013)   (2,635)   -     -     -     820   55   875
Acquisitions   2,153   11,724   13,877   2,153   11,724   13,877   -     -     -     -     -     -  
Dispositions   (39)   (8,944)   (8,983)   (39)   (8,944)   (8,983)   -     -     -     -     -     -  
Economic Factors   (15,422)   (20,338)   (35,760)   (4,036)   (15,224)   (19,260)   (11,386)   (5,114)   (16,500)   -     -     -  
Production   (48,599)   -     (48,599)   (45,495)   -     (45,495)   (2,664)   -     (2,664)   (440)   -     (440)
At December 31, 2015   395,788   258,097   653,885   385,637   252,705   638,342   8,210   4,917   13,127   1,942   475   2,417
                                                 
                                                 
    Natural Gas Liquids   BOE                        
            Proved +           Proved +                        
Proved Probable P+P (1) (2)   Proved   Probable   Probable   Proved   Probable   Probable                        
Factors   (Mbbl)   (Mbbl)   (Mbbl)   (Mboe)   (Mboe)   (Mboe)                        
At December 31, 2014   13,614   11,492   25,106   151,503   95,383   246,884                        
Discoveries   39   7   46   2,940   487   3,427                        
Extensions & Improved Recovery   3,299   3,005   6,304   21,775   13,659   35,433                        
Technical Revisions   (315)   (1,863)   (2,178)   8,397   (6,372)   2,026                        
Acquisitions   222   1,681   1,903   776   4,421   5,197                        
Dispositions   (2)   (193)   (195)   (18)   (1,688)   (1,705)                        
Economic Factors   (95)   (597)   (692)   (4,635)   (5,707)   (10,342)                        
Production   (1,533)   -     (1,533)   (20,032)   -     (20,031)                        
At December 31, 2015   15,229   13,532   28,761   160,706   100,184   260,889                       .
 
Notes:
(1)  "Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable.  It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.
(2)  "Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves.  It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.
(3)  The pricing assumptions used in the GLJ Report with respect to net present value of future net revenue (forecast) as well as the inflation rates used for operating and capital costs are set forth above.  See "Forecast Prices used in Estimates".  The NGL price is an aggregate of the individual natural gas liquids prices used in the Total Proved plus Probable evaluation.  GLJ is an independent qualified reserves evaluator appointed pursuant to NI 51-101.
(4)  For reporting purposes, "Total Oil" is the sum of Light Crude oil and Medium Crude Oil, Heavy Oil and Tight Oil.  For reporting purposes, "Total Gas" is the sum of Conventional Natural Gas, Coal Bed Methane and Shale Natural Gas.
(5) "Coal Bed Methane" and "Shale Natural Gas" were considered "Unconventional Natural Gas" in previous years. NI 51-5101 no longer differentiates between conventional and unconventional activities.

The table below sets out the future development costs deducted in the estimation of future net revenue attributable to total proved reserves and total proved plus probable reserves (using forecast prices and costs).

Table 9: Future Development Costs(1)

      Total Proved     Total Proved Plus Probable
(M$)     Estimated Using Forecast Prices and Costs     Estimated Using Forecast Prices and Costs
Australia            
2016     52,820     52,820
2017     6,701     6,701
2018     51,052     51,052
2019     2,993     2,993
2020     3,052     3,052
Remainder     48,279     48,332
Total for all years undiscounted     164,897     164,950
Canada            
2016     120,559     152,322
2017     98,902     170,944
2018     89,432     189,394
2019     45,342     136,985
2020     51,326     127,236
Remainder     24,026     53,245
Total for all years undiscounted     429,587     830,126
France            
2016     47,099     79,711
2017     41,380     77,270
2018     12,751     76,088
2019     7,300     49,803
2020     15,570     24,985
Remainder     18,725     32,416
Total for all years undiscounted     142,825     340,273
Germany            
2016     210     210
2017     159     159
2018     141     141
2019     6,936     6,936
2020     110     147
Remainder     1     1
Total for all years undiscounted     7,557     7,594
Ireland            
2016     8,862     8,862
2017     1,321     1,321
2018     -       -  
2019     1,826     1,826
2020     -       -  
Remainder     17,112     17,112
Total for all years undiscounted     29,121     29,121
Netherlands            
2016     1,487     5,150
2017     28,416     48,788
2018     1,076     15,274
2019     424     11,254
2020     433     433
Remainder     6,575     6,573
Total for all years undiscounted     38,411     87,472
United States            
2016     11,034     30,362
2017     24,333     37,820
2018     9,397     40,819
2019     -       -  
2020     -       -  
Remainder     -       -  
Total for all years undiscounted     44,764     109,001
             
             
Total Company            
2016     242,071     329,437
2017     201,212     343,003
2018     163,849     372,768
2019     64,821     209,797
2020     70,491     155,853
Remainder     114,718     157,679
Total for all years undiscounted     857,162     1,568,537
 
Note:
(1)  The pricing assumptions used in the GLJ Report with respect to net present value of future net revenue (forecast) as well as the inflation rates used for operating and capital costs are set forth above.  See "Forecast Prices used in Estimates".  The NGL price is an aggregate of the individual natural gas liquids prices used in the Total Proved plus Probable evaluation.  GLJ is an independent qualified reserves evaluator appointed pursuant to NI 51-101.

Vermilion expects to source its capital expenditure requirements from internally generated cash flow and, as appropriate, from Vermilion's existing credit facility or equity or debt financing.  It is anticipated that costs of funding the future development costs will not impact development of its properties or Vermilion's reserves or future net revenue.

CONTINGENT RESOURCES

Vermilion retained GLJ to conduct an independent resource evaluation to assess contingent resources across all of the Company's key operating regions with an effective date of December 31, 2015 (the "GLJ Resources Assessment").  All contingent resources evaluated in the GLJ Resources Assessment were deemed economic at the effective date of December 31, 2015.

A range of contingent resources estimates (low, best and high) were prepared by GLJ.  See notes 6 to 8 of the tables below for a description of low estimate, best estimate and high estimate.

The GLJ Resources Assessment estimated contingent resources of 95.1 million boe (low estimate) to 254.7 million boe (high estimate), with a best estimate of 160.7 million boe.  Contingent resources are in addition to reserves estimated in the GLJ Report.

An estimate of risked net present value of future net revenue of contingent resources is preliminary in nature and is provided to assist the reader in reaching an opinion on the merit and likelihood of the company proceeding with the required investment. It includes contingent resources that are considered too uncertain with respect to the chance of development to be classified as reserves. There is uncertainty that the risked net present value of future net revenue will be realized.

Summary information regarding contingent resources and net present value of future net revenues from contingent resources are set forth below and are derived, in each case, from the GLJ Resources Assessment. The GLJ Resources Assessment was prepared in accordance with COGEH and NI-51-101 by GLJ, an independent qualified reserve evaluator.

Table 10: Summary of Risked Oil and Gas Contingent Resources as at December 31, 2015 (1) (2) - Forecast Prices and Costs (3) (4)

                                                      Unrisked
  Light Crude Oil &   Conventional   Coal Bed   Natural Gas   Oil     Oil
Resources Medium Crude Oil   Natural Gas   Methane   Liquids   Equivalent     Equivalent
Project                                                     Chance        
Maturity   Gross   Net     Gross   Net     Gross   Net     Gross   Net     Gross   Net     of Dev.   Gross   Net
Sub-Class   (Mbbl)   (Mbbl)     (MMcf)   (MMcf)     (Mbbl)   (Mbbl)     (Mbbl)   (Mbbl)     (Mbbl)   (Mbbl)     (%) (9)   (Mbbl)   (Mbbl)
Contingent (1C) - Low Estimate                                                              
Development Pending                                                              
Australia(10)   -     -       -     -       -     -       -     -       -     -       -   -     -  
Canada(11)   15,733   11,470     216,245   186,486     3,537   3,360     15,457   11,988     67,820   55,099     81.5%   83,218   67,516
France(12)   12,604   11,853     1,020   1,020     -     -       -     -       12,774   12,023     87.8%   14,542   13,687
Germany   -     -       -     -       -     -       -     -       -     -       -   -     -  
Ireland(13)   -     -       4,475   4,475     -     -       -     -       746   746     70.0%   1,065   1,065
Netherlands(14)   -     -       215   215     -     -       -     -       36   36     60.0%   60   60
USA(15)   10,099   8,314     11,178   9,202     -     -       1,782   1,467     13,744   11,315     90.0%   15,272   12,571
Total   38,436   31,637     233,133   201,398     3,537   3,360     17,239   13,455     95,120   79,219     83.3%   114,157   94,899
Contingent (2C) - Best Estimate                                                              
Development Pending                                                              
Australia(10)   3,000   3,000     -     -       -     -       -     -       3,000   3,000     80.0%   3,750   3,750
Canada(11)   24,685   17,637     361,733   312,655     6,445   6,009     24,018   18,485     110,066   89,233     79.8%   138,003   111,976
France(12)   25,611   24,007     1,300   1,300     -     -       -     -       25,828   24,224     85.7%   30,138   28,255
Germany   -     -       -     -       -     -       -     -       -     -       -   -     -  
Ireland(13)   -     -       6,859   6,859     -     -       -     -       1,143   1,143     70.0%   1,633   1,633
Netherlands(14)   -     -       4,739   4,739     -     -       3   3     793   793     60.0%   1,321   1,321
USA(15)   14,470   11,912     16,449   13,540     -     -       2,622   2,159     19,834   16,328     90.0%   22,038   18,141
Total   67,766   56,556     391,080   339,093     6,445   6,009     26,643   20,647     160,664   134,721     81.6%   196,883   165,076
Contingent (3C) - High Estimate                                                              
Development Pending                                                              
Australia(10)   4,040   4,040     -     -       -     -       -     -       4,040   4,040     80.0%   5,050   5,050
Canada(11)   51,590   36,716     537,685   461,047     8,843   8,270     34,482   25,750     177,160   140,686     78.6%   225,319   179,007
France(12)   41,455   38,784     1,670   1,670     -     -       -     -       41,733   39,062     85.0%   49,114   45,950
Germany   -     -       -     -       -     -       -     -       -     -       -   -     -  
Ireland(13)   -     -       10,671   10,671     -     -       -     -       1,779   1,779     70.0%   2,541   2,541
Netherlands(14)   -     -       9,294   9,294     -     -       6   6     1,555   1,555     60.0%   2,592   2,592
USA(15)   20,592   16,951     23,987   19,746     -     -       3,824   3,148     28,414   23,390     90.0%   31,571   25,988
Total   117,677   96,491     583,307   502,428     8,843   8,270     38,312   28,904     254,681   210,512     80.5%   316,187   261,128

Table 11: Summary of Risked Net Present Value of Future Net Revenues as at December 31, 2015 - Forecast Prices and Costs (3)

Resources Project                                        
Maturity Sub-Class Before Income Taxes, Discounted at (5)   After Income Taxes, Discounted at (5)
(M$)   0%   5%   10%   15%   20%   0%   5%   10%   15%   20%
Contingent (1C) -Low Estimate (6)                                        
Development Pending                                        
Australia   -     -     -     -     -     -     -     -     -     -  
Canada   1,263,475   696,994   404,377   244,496   152,795   917,336   485,559   266,767   150,423   85,918
France   764,172   412,773   234,791   138,408   83,554   500,593   255,152   135,124   72,474   38,285
Germany   -     -     -     -     -     -     -     -     -     -  
Ireland   10,759   6,832   3,908   1,827   388   10,759   6,832   3,908   1,827   388
Netherlands   321   288   235   183   139   (111)   (31)   (4)   1   (1)
USA   402,480   183,006   86,860   41,587   19,010   257,913   112,016   47,760   18,068   3,877
Total   2,441,207   1,299,893   730,171   426,501   255,886   1,686,490   859,528   453,555   242,793   128,467
Contingent (2C) -Best Estimate (7)                                        
Development Pending                                        
Australia   112,493   76,004   51,782   35,416   24,186   8,804   (933)   (6,457)   (9,465)   (10,961)
Canada   2,320,917   1,231,251   711,661   438,235   283,381   1,690,519   869,129   482,208   282,696   172,627
France   1,596,937   861,198   493,517   295,075   181,775   1,046,955   534,621   286,991   157,949   87,111
Germany   -     -     -     -     -     -     -     -     -     -  
Ireland   34,337   24,293   16,560   11,029   7,171   25,752   18,634   12,872   8,618   5,581
Netherlands   17,580   12,005   8,041   5,233   3,236   8,618   5,315   2,916   1,218   28
USA   761,511   347,466   175,611   95,123   53,819   490,733   219,043   105,532   52,935   26,574
Total   4,843,775   2,552,217   1,457,172   880,111   553,568   3,271,381   1,645,809   884,062   493,951   280,960
Contingent (3C) -High Estimate (8)                                        
Development Pending                                        
Australia   213,428   151,220   109,414   80,640   60,405   40,896   22,363   11,003   3,988   (347)
Canada   4,528,849   2,254,759   1,249,423   745,486   469,386   3,301,748   1,601,403   857,791   491,549   295,260
France   2,789,003   1,489,072   858,593   521,966   329,664   1,828,488   934,880   512,726   293,550   172,056
Germany   -     -     -     -     -     -     -     -     -     -  
Ireland   73,725   48,565   32,219   21,620   14,641   55,100   36,396   24,132   16,127   10,830
Netherlands   54,851   37,676   26,539   19,104   13,995   29,079   19,328   12,926   8,658   5,754
USA   1,306,063   569,626   289,610   162,255   96,886   844,550   363,515   179,660   96,592   54,589
Total   8,965,919   4,550,918   2,565,798   1,551,071   984,977   6,099,861   2,977,885   1,598,238   910,464   538,142

Notes:
(1)  The contingent resource assessments were prepared by GLJ in accordance with the definitions, standards and procedures contained in the COGEH and NI 51-101. Contingent resource is defined in the COGEH as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. There is no certainty that it will be commercially viable to produce any portion of the contingent resources or that Vermilion will produce any portion of the volumes currently classified as contingent resources. The estimates of contingent resources involve implied assessment, based on certain estimates and assumptions, that the resources described exists in the quantities predicted or estimated, as at a given date, and that the resources can be profitably produced in the future. The risked net present value of the future net revenue from the contingent resources does not necessarily represent the fair market value of the contingent resources. Actual contingent resources (and any volumes that may be reclassified as reserves) and future production therefrom may be greater than or less than the estimates provided herein.
(2)   GLJ prepared the estimates of contingent resources shown for each property using deterministic principles and methods. Probabilistic aggregation of the low and high property estimates shown in the table might produce different total volumes than the arithmetic sums shown in the table. 
(3)   The forecast price and cost assumptions utilized in the year-end 2015 reserves report were also utilized by GLJ in preparing the contingent resource assessments. See "GLJ December 31, 2015 Forecast Prices" in Vermilion's Annual Information Form for the year ended December 31, 2015.
(4)   "Gross" Contingent Resources are Vermilion's working interest (operating or non-operating) share before deduction of royalties and without including any royalty interests of Vermilion.  "Net" Contingent Resources are Vermilion's working interest (operating or non-operating) share after deduction of royalty obligations, plus Vermilion's royalty interests in Contingent Resources.
(5)   The risked net present value of future net revenue attributable to the contingent resources does not necessarily represent the fair market value of the contingent resources. Estimated abandonment and reclamation costs have been included in the evaluation.
(6)   This is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate.
(7)   This is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate.
(8)   This is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate.
(9)   The Chance of Development (CoDev) is the estimated probability that, once discovered, a known accumulation will be commercially developed. Five factors have been considered in determining the CoDev as follows:

  • CoDev = Ps (Economic Factor) × Ps (Technology Factor) × Ps (Development Plan Factor) ×Ps (Development Timeframe Factor) × Ps (Other Contingency Factor) wherein
  • Ps is the probability of success
  • Economic Factor - For reserves to be assessed, a project must be economic. With respect to contingent resources, this factor captures uncertainty in the assessment of economic status principally due to uncertainty in cost estimates and marketing options. Economic viability uncertainty due to technology is more aptly captured with the Technology Factor. The Economic Factor will be 1 for reserves and will often be 1 for development pending and for projects with a development study or pre-development study with a robust rate of return. A robust rate of return means that the project retains economic status with variation in costs and/or marketing plans over the expected range of outcomes for these variables.
  • Technology Factor - For reserves to be assessed, a project must utilize established technology. With respect to contingent resources, this factor captures the uncertainty in the viability of the proposed technology for the subject reservoir, namely, the uncertainty associated with technology under development. By definition, technology under development is a recovery process or process improvement that has been determined to be technically viable via field test and is being field tested further to determine its economic viability in the subject reservoir. The Technology Factor will be 1 for reserves and for established technology. For technology under development, this factor will consider different risks associated with technologies being developed at the scale of the well versus the scale of a project and technologies which are being modified or extended for the subject reservoir versus new emerging technologies which have not previously been applied in any commercial application. The risk assessment will also consider the quality and sufficiency of the test data available, the ability to reliably scale such data and the ability to extrapolate results in time.
  • Development Plan Factor - For reserves to be assessed, a project must have a detailed development plan. With respect to contingent resources, this factor captures the uncertainty in the project evaluation scenario. The Development Plan Factor will be 1 for reserves and high, approaching 1, for development pending projects. This factor will consider development plan detail variations including the degree of delineation, reservoir specific development and operating strategy detail (technology decision, well layouts (spacing and pad locations), completion strategy, start-up strategy, water source and disposal, other infrastructure, facility design, marketing plans etc) and the quality of the cost estimates as provided by the developer.
  • Development Timeframe Factor - In the case of major projects, for reserves to be assessed, first major capital spending must be initiated within 5 years of the effective date. The Development Timeframe Factor will be 1 for reserves and will often be 1 for development pending provided the project is planned on-stream based on the same criteria used in the assessment of reserves. With respect to contingent resources, the factor will approach 1 for projects planned on-stream with a timeframe slightly longer than the limiting reserves criteria.
  • Other Contingency Factor - For reserves to be assessed, all contingencies must be eliminated. With respect to contingent resources, this factor captures major contingencies, usually beyond the control of the operator, other than those captured by economic status, technology status, project evaluation scenario status and the development timeframe. The Other Contingency Factor will be 1 for reserves and for development pending and less than 1 for on hold. Provided all contingencies have been identified and their resolution is reasonably certain, this factor would also be 1 for development unclarified.
  • These factors may be inter-related (dependent) and care has been taken to ensure that risks are appropriately accounted.
(10)  Contingent resources for Australia have been estimated based on the continued drilling in our active core asset (see "Description of Properties" section of this AIF) using established recovery technologies.  The estimated cost to bring these   Contingent resources on commercial production is $171 MM and the expected timeline is between two and six years.  The specific contingencies for these resources are Corporate Commitment and Development Timing.
(11)  Contingent resources for Canada have been estimated based on the continued drilling in our active core assets (see "Description of Properties" section of this AIF) using established recovery technologies.  The estimated cost to bring these Contingent resources on commercial production is  $1,234 MM and the expected timeline is between one and 10 years.  The specific contingencies for these resources are Corporate Commitment and Development Timing.
(12)  Contingent resources for France have been estimated based on the continued drilling in our active core assets (see "Description of Properties" section of this AIF) using established recovery technologies.  The estimated cost to bring these Contingent resources on commercial production is $542 MM and the expected timeline is between two and 10 years.  The specific contingencies for these resources are Corporate Commitment and Development Timing.
(13)  Contingent resources for Ireland have been estimated based on the continued drilling in our active core asset (see "Description of Properties" section of this AIF) using established recovery technologies.  The estimated cost to bring these Contingent resources on commercial production is $31 MM and the expected timeline is between three and four years.  The specific contingencies for these resources are Corporate Commitment and Development Timing.
(14)  Contingent resources for Netherlands have been estimated based on the continued drilling in our active core assets (see "Description of Properties" section of this AIF) using established recovery technologies.  The estimated cost to bring these Contingent resources on commercial production is $14 MM and the expected timeline is between two and 10 years.  The specific contingencies for these resources are Corporate Commitment and Development Timing.
(15)  Contingent resources for USA have been estimated based on the continued drilling in our active core asset (see "Description of Properties" section of this AIF) using established recovery technologies.  The estimated cost to bring these Contingent resources on commercial production is $278 MM and the expected timeline is between two and 10 years.  The specific contingencies for these resources are Corporate Commitment and Development Timing.

ABOUT VERMILION

Vermilion is an international energy producer that seeks to create value through the acquisition, exploration, development and optimization of producing properties in North America, Europe and Australia. Our business model targets annual organic production growth, along with providing reliable and increasing dividends to investors.  Vermilion is targeting growth in production primarily through the exploitation of light oil and liquids-rich natural gas conventional resource plays in Canada and the United States, the exploration and development of high impact natural gas opportunities in the Netherlands and Germany, and through oil drilling and workover programs in France and Australia.  Vermilion also holds an 18.5% working interest in the Corrib gas field in Ireland.  Vermilion pays a monthly dividend of Canadian $0.215 per share, which provides a current yield of approximately 7%.  Management and directors of Vermilion hold approximately 6% of the outstanding shares, are committed to consistently delivering superior rewards for all stakeholders, and have delivered a 20-year history of market outperformance.  Vermilion trades on the Toronto Stock Exchange and the New York Stock Exchange under the symbol VET.

Natural gas volumes have been converted on the basis of six thousand cubic feet of natural gas to one barrel equivalent of oil.  Barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation.  A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Fund flows from operations, netbacks and recycle ratio are measures that do not have standardized meanings prescribed by International Financial Reporting Standards ("IFRS") and therefore may not be comparable with the calculations of similar measures for other entities. "Fund flows from operations" represents cash flows from operating activities before changes in non-cash operating working capital and asset retirement obligations settled. Management considers fund flows from operations and fund flows from operations per share to be key measures as they demonstrate Vermilion's ability to generate the cash necessary to pay dividends, repay debt, fund asset retirement obligations and make capital investments. Management believes that by excluding the temporary impact of changes in non-cash operating working capital, fund flows from operations provides a useful measure of Vermilion's ability to generate cash that is not subject to short-term movements in non-cash operating working capital. "Recycle Ratio" means a measure of capital efficiency calculated by dividing the operating netback of production by the cost of adding reserves. "Netbacks" are per boe and per Mcf measures used in operational and capital allocation decisions. After-tax cash flow netbacks are calculated as cash flow from operating activities (determined in accordance with IFRS) expressed on a per boe basis.

 

SOURCE Vermilion Energy Inc.

PDF available at: http://stream1.newswire.ca/media/2016/02/29/20160229_C9877_DOC_EN_44637.pdf

For further information:

Anthony Marino, President & COO;
Curtis W. Hicks, C.A., Executive VP & CFO; and/or
Dean Morrison, Director Investor Relations
TEL (403) 269-4884
IR TOLL FREE 1-866-895-8101
investor_relations@vermilionenergy.com
www.vermilionenergy.com


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