Exhibit 99.2












Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis






ABBREVIATIONS



|$M     | thousand dollars                                                                                                                                                                                                                      
|------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|$MM    | million dollars                                                                                                                                                                                                                       
|AECO   | the daily average benchmark price for natural gas at the AECO ‘C’ hub in southeast Alberta                                                                                                                                            
|bbl(s) | barrel(s)                                                                                                                                                                                                                             
|bbls/d | barrels per day                                                                                                                                                                                                                       
|bcf    | billion cubic feet                                                                                                                                                                                                                    
|boe    | barrel of oil equivalent, including: crude oil, natural gas liquids and natural gas (converted on the basis of one boe for                                                                                                            
|       | six mcf of natural gas)                                                                                                                                                                                                               
|boe/d  | barrel of oil equivalent per day                                                                                                                                                                                                      
|btu    | British thermal units                                                                                                                                                                                                                 
|GJ     | gigajoules                                                                                                                                                                                                                            
|HH     | Henry Hub, a reference price paid for natural gas in US dollars at Erath, Louisiana                                                                                                                                                   
|mbbls  | thousand barrels                                                                                                                                                                                                                      
|mboe   | thousand barrel of oil equivalent                                                                                                                                                                                                     
|mcf    | thousand cubic feet                                                                                                                                                                                                                   
|mcf/d  | thousand cubic feet per day                                                                                                                                                                                                           
|mmboe  | million barrel of oil equivalent                                                                                                                                                                                                      
|mmbtu  | million British thermal units                                                                                                                                                                                                         
|mmcf   | million cubic feet                                                                                                                                                                                                                    
|mmcf/d | million cubic feet per day                                                                                                                                                                                                            
|MWh    | megawatt hour                                                                                                                                                                                                                         
|NBP    | the reference price paid for natural gas in the United Kingdom, quoted in pence per therm, at the National Balancing Point Virtual Trading Point operated by National Grid. Our production in Ireland is priced with reference to NBP.
|NGLs   | natural gas liquids                                                                                                                                                                                                                   
|PRRT   | Petroleum Resource Rent Tax, a profit based tax levied on petroleum projects in Australia                                                                                                                                             
|TTF    | the day-ahead price for natural gas in the Netherlands, quoted in MWh of natural gas, at the Title Transfer Facility                                                                                                                  
|       | Virtual Trading Point operated by Dutch TSO Gas Transport Services                                                                                                                                                                    
|WTI    | West Texas Intermediate, the reference price paid for crude oil of standard grade in US dollars at Cushing, Oklahoma                                                                                                                  
|CGU    | Cash generating unit, the basis upon which Vermilions assets are evaluated for potential impairments                                                                                                                                  
|DRIP   | Dividend Reinvestment Plan                                                                                                                                                                                                            



2


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




DISCLAIMER



Certain statements included or incorporated
by reference in this document 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 document may include, but
are not limited to: capital expenditures; business strategies and objectives; operational and financial performance; estimated
reserve quantities and the discounted net present value of future net revenue 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;
exploration and development plans; acquisition and disposition plans and the timing thereof; operating and other expenses, including
the payment and amount of future dividends; royalty and income tax rates; and the timing of regulatory proceedings and approvals.



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 Vermilion to obtain equipment, services
and supplies in a timely manner to carry out its activities in Canada and internationally; the ability of Vermilion 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 Vermilion 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 exploration and development activities.



Although Vermilion 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 Vermilion can give no assurance that such expectations will prove to be correct. Financial outlooks
are provided for the purpose of understanding Vermilion’s financial position 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 Vermilion 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 Vermilion'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 and associated expenditures; potential
delays or changes in plans with respect to exploration or development projects; Vermilion'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 Vermilion to add production and reserves through exploration and development activities; 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 Vermilion; and other risks and uncertainties
described elsewhere in this document or in Vermilion's other filings with Canadian securities regulatory authorities.



The forward looking statements or information
contained in this document are made as of the date hereof and Vermilion 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.



All oil and natural gas reserve information
contained in this document has been prepared and presented in accordance with National Instrument 51-101 Standards of Disclosure
for Oil and Gas Activitiesand the Canadian Oil and Gas Evaluation Handbook. The actual crude oil and natural gas reserves
and future production will be greater than or less than the estimates provided in this document. The estimated future net revenue
from the production of crude oil and natural gas reserves does not represent the fair market value of these reserves.



Natural gas volumes have been converted
on the basis of six thousand cubic feet of natural gas to one barrel of oil equivalent. Barrels of oil equivalent (boe) may be
misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet 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.



Financial data contained within this document are reported
in Canadian dollars, unless otherwise stated.



3


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




MANAGEMENT’S DISCUSSION AND
ANALYSIS



The following is Management’s Discussion
and Analysis (“MD&A”), dated February 25, 2016, of Vermilion Energy Inc.’s (“Vermilion”, “we”,
“our”, “us” or the “Company”) operating and financial results as at and for the three months
and year ended December 31, 2015 compared with the corresponding periods in the prior year.



This discussion should be read in conjunction
with the audited consolidated financial statements for the year ended December 31, 2015 and 2014, together with the accompanying
notes. Additional information relating to Vermilion, including its Annual Information Form, will be available on or after March
4, 2016 on SEDAR at www.sedar.com or on Vermilion’s website at www.vermilionenergy.com.



The audited consolidated financial statements
for the year ended December 31, 2015 and comparative information have been prepared in Canadian dollars, except where another currency
has been indicated, and in accordance with International Financial Reporting Standards (“IFRS” or, alternatively, “GAAP”)
as issued by the International Accounting Standards Board.



This MD&A includes references to
certain financial measures which do not have standardized meanings prescribed by IFRS. These financial measures include:



| | · | Fund flows from operations: This
financial measure is calculated as cash flows from operating activities before changes in non-cash operating working capital and
asset retirement obligations settled. We analyze fund flows from operations both on a consolidated basis and on a business unit
basis in order to assess the contribution of each business unit to our ability to generate cash necessary to pay dividends, repay
debt, fund asset retirement obligations and make capital investments.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Netbacks: These financial measures
are per boe and per mcf measures used in the analysis of operational activities. We assess netbacks both on a consolidated basis
and on a business unit basis in order to compare and assess the operational and financial performance of each business unit versus
other business units and third party crude oil and natural gas producers.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



In addition, this MD&A includes references
to certain financial measures which do not have standardized meanings prescribed by IFRS and are not disclosed in our audited financial
statements. As such, these financial measures are considered non-GAAP financial measures and therefore are unlikely to be comparable
with similar financial measures presented by other issuers. For a full description of these non-GAAP financial measures and a reconciliation
of these measures to their most directly comparable GAAP measures, please refer to “NON-GAAP FINANCIAL MEASURES”.



VERMILION’S BUSINESS



Vermilion is a Calgary, Alberta based
international oil and gas producer focused on the acquisition, development and optimization of producing properties in North America,
Europe, and Australia. We manage our business through our Calgary head office and our international business unit offices.



This MD&A separately discusses each
of our business units in addition to our corporate segment.



| | · | Canada business unit: Relates to
our assets in Alberta and Saskatchewan.
| | - | ------------------------------------------------------------------------

| | · | France business unit: Relates to
our operations in France in the Paris and Aquitaine Basins.
| | - | --------------------------------------------------------------------------------------------

| | · | Netherlands business unit: Relates
to our operations in the Netherlands.
| | - | ------------------------------------------------------------------------

| | · | Germany business unit: Relates to
our operations in Germany.
| | - | ------------------------------------------------------------

| | · | Ireland business unit: Relates to
our 18.5% non-operated interest in the Corrib offshore natural gas field.
| | - | -----------------------------------------------------------------------------------------------------------

| | · | Australia business unit: Relates
to our operations in the Wandoo offshore crude oil field.
| | - | ------------------------------------------------------------------------------------------

| | · | United States business unit: Relates
to our operations in Wyoming in the Powder River Basin.
| | - | --------------------------------------------------------------------------------------------

| | · | Corporate: Includes expenditures
related to our global hedging program, financing expenses, and general and administration expenses, primarily incurred in Canada
and not directly related to the operations of a specific business unit.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



4


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




2015 REVIEW AND 2016 GUIDANCE



We first issued 2015 capital expenditure
guidance of $525 million on December 8, 2014. We subsequently adjusted our 2015 capital expenditure guidance to $415 million on
February 27, 2015, in response to the continued weakness in commodity prices. That reduction reflected lower planned activity levels,
including the deferral of our Australian drilling program. On August 10, 2015 we announced an increase in our capital expenditure
guidance of $70 million to $485 million following the reinstatement of the Australian drilling program as well as additional funding
for projects in Canada, France and Ireland. We maintained our previous production guidance of 55,000-57,000 boe/d, albeit towards
the lower end of our guidance range due to later-than-originally expected first gas from Corrib. Actual 2015 capital spending of
$486.9 million was within 1% of guidance. Production for 2015 proved to be within 0.1% of the guidance range.



On November 9, 2015 we announced preliminary
2016 capital expenditure guidance of $350 million and affirmed production guidance of between 63,000-65,000 boe/d. On January 5,
2016, in response to the continued weakness in commodity prices we adjusted our 2016 capital expenditure guidance to $285 million
with corresponding production guidance of 62,500-63,500 boe/d. On February 29, 2016, we further revised our 2016 capital expenditure
guidance to $235 million as a result of continued commodity price deterioration. We maintained our production guidance of 62,500-63,500
boe/d. The February 29, 2016 reduction primarily reflects lower expected non-operated drilling activity in Canada, fewer workovers
in France, and a deferral of our Netherlands drilling and pipeline twinning programs.



The following table summarizes our 2015
and 2016 guidance:



|                |                   | Date | Capital Expenditures ($MM) | Production (boe/d)
|--------------- | ----------------- | ---- | -------------------------- | ------------------
|2015 - Guidance |                   |      |                           
|2015 Guidance   | December 8, 2014  | 525  | 55,000 to 57,000          
|2015 Guidance   | February 27, 2015 | 415  | 55,000 to 57,000          
|2015 Guidance   | August 10, 2015   | 485  | 55,000 to 57,000          
|2016 - Guidance |                   |      |                           
|2016 Guidance   | November 9, 2015  | 350  | 63,000 to 65,000          
|2016 Guidance   | January 5, 2016   | 285  | 62,500 to 63,500          
|2016 Guidance   | February 29, 2016 | 235  | 62,500 to 63,500          



SHAREHOLDER RETURN



Vermilion strives to provide investors
with reliable and growing dividends in addition to sustainable, global production growth. The following table, as of December 31,
2015, reflects our trailing one, three, and five year performance:



|Total return(1)                                                 | Trailing One Year | Trailing Three Year | Trailing Five Year
|--------------------------------------------------------------- | ----------------- | ------------------- | ------------------
|Dividends per Vermilion share                                   | $2.58             | $7.56               | $12.12            
|Capital appreciation per Vermilion share                        | ($19.39)          | ($14.36)            | ($8.61)           
|Total return per Vermilion share                                | (29.5%)           | (13.1%)             | 7.6%              
|Annualized total return per Vermilion share                     | (29.5%)           | (4.6%)              | 1.5%              
|Annualized total return on the S&P TSX High Income Energy Index | (31.2%)           | (13.1%)             | (8.5%)            



(1) 
	The above table includes non-GAAP financial measures which may not be comparable to other companies. Please see the “NON-GAAP
FINANCIAL MEASURES” section of this MD&A.



5


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




CONSOLIDATED RESULTS OVERVIEW



|                      |                                               | Three
    Months Ended |             | %
change    |  |           | Year
    Ended |  | %
change
|--------------------- | --------------------------------------------- | ---------------------- | ----------- | ----------- |  | --------- | -------------- |  | --------
|                      |                                               | Dec
    31,            | Sep
    30, | Dec
    31, |  | Q4/15 vs. | Q4/15
    vs.  |  |         
|                      |                                               | 2015                   | 2015        | 2014        |  | Q3/15     | Q4/14          |  |         
|Production            |                                               |                        |             |             |  |           |                |  |         
|                      | Crude
    oil (bbls/d)                        | 28,745                 | 28,164      | 28,846      |  | 2%        | -              |  |         
|                      | NGLs
    (bbls/d)                             | 5,298                  | 4,622       | 2,822       |  | 15%       | 88%            |  |         
|                      | Natural
    gas (mmcf/d)                      | 162.09                 | 140.97      | 107.42      |  | 15%       | 51%            |  |         
|                      | Total
    (boe/d)                             | 61,058                 | 56,280      | 49,571      |  | 8%        | 23%            |  |         
|                      | Build
    (draw) in inventory (mbbl)          | (93)                   | (85)        | (238)       |  |           |                |  |         
|Financial
    metrics |                                               |                        |             |             |  |           |                |  |         
|                      | Fund
    flows from operations ($M)           | 136,441                | 129,435     | 185,528     |  | 5%        | (26%)          |  |         
|                      | Per
    share ($/basic share)                 | 1.22                   | 1.17        | 1.73        |  | 4%        | (29%)          |  |         
|                      | Net
    earnings (loss)                       | (142,080)              | (83,310)    | 58,642      |  | 71%       | (342%)         |  |         
|                      | Per
    share ($/basic share)                 | (1.28)                 | (0.76)      | 0.55        |  | 68%       | (333%)         |  |         
|                      | Cash
    flows from operating activities ($M) | 164,863                | 122,230     | 229,146     |  | 35%       | (28%)          |  |         
|                      | Net
    debt ($M)                             | 1,381,951              | 1,363,043   | 1,265,650   |  | 1%        | 9%             |  |         
|                      | Cash
    dividends ($/share)                  | 0.645                  | 0.645       | 0.645       |  | -         | -              |  |         
|Activity              |                                               |                        |             |             |  |           |                |  |         
|                      | Capital
    expenditures ($M)                 | 128,996                | 93,381      | 166,243     |  | 38%       | (22%)          |  |         
|                      | Acquisitions
    ($M)                         | 6,227                  | 22,155      | 1,652       |  | (72%)     | 277%           |  |         
|                      | Gross
    wells drilled                       | 8.00                   | 11.00       | 26.00       |  |           |                |  |         
|                      | Net
    wells drilled                         | 5.56                   | 6.91        | 16.58       |  |           |                |  |         



Operational review



| | · | Recorded consolidated average production
of 61,058 boe/d in Q4 2015, which was an 8% increase over Q3 2015. This quarter-over-quarter increase was the result of production
growth in all of our business units, including a 2,075 boe/d increase in Canada, largely attributable to growth in our Mannville
condensate-rich gas play, and a 1,391 boe/d increase from Australia driven by our sidetrack well drilled in Q4 2015.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Increased consolidated average production
for the three months and year ended December 31, 2015 by 23% and 11%, respectively, versus the comparable periods in 2014, primarily
due to growth in Canada, the Netherlands, and France.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Activity during the quarter included
capital expenditures totalling $129.0 million, incurred primarily in Australia, Canada, and France. In Australia, capital expenditures
totalling $40.9 million related to the horizontal sidetrack drilling program. In Canada, capital expenditures totalling $27.6 million
were 26% lower than the $37.2 million incurred during Q3 2015 and related to the drilling of 2.6 net wells (6.9 net wells in Q3
2015). In France, capital expenditures of $24.1 million were 39% higher than the $17.4 million incurred in Q3 2015 and related
primarily to facility maintenance, accretive workovers, and subsurface activity.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Financial review



Net earnings (loss)

| | · | The net loss for Q4 2015 was $142.1 million ($1.28/basic share)
as compared to a net loss of $83.3 million ($0.76/basic share) in Q3 2015. The increase in the net loss was primarily attributable
to unfavourable foreign exchange variances and the impact of a valuation allowance recorded on deferred tax assets. The valuation
allowance relates to certain non-capital losses for which there is uncertainty as to the Company’s ability to fully utilize
such losses when applying forecasted commodity prices in effect as at December 31, 2015.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | The net loss for the three months
and year ended December 31, 2015 represented decreases of $200.7 million and $486.6 million, respectively, versus the comparative
periods in 2014. These decreases were driven primarily by lower petroleum and natural gas sales as a result of lower commodity
prices, as well as impairment charges recognized in Canada and a valuation allowance recorded on deferred tax assets due to declines
in commodity price forecasts. The impacts of weakened commodity prices were partially offset by significant production growth and
global cost reductions, including an 8% and 11% reduction in per unit operating expense for the three months and year ended December
31, 2015, respectively. The year ended December 31, 2015 was also positively impacted by the recovery of $31.8 million (before
taxes) recognized in Q1 2015 following a judgment in favour of Vermilion for costs incurred as a result of a 2007 oil spill at
the Ambès oil terminal in France that occurred shortly after Vermilion acquired the asset.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



6


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




Cash flows from operating activities

| | · | Absent changes in working capital,
cash flows from operating activities increased by 3% quarter-over-quarter, despite significantly lower commodity prices, due to
production growth in every business unit, coupled with increased realized gains from our commodity hedges.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Cash flows from operating activities
decreased by 28% and 44% for the three months and year ended December 31, 2015, respectively, versus the comparable periods in
2014. These decreases were primarily related to lower revenue due to lower commodity prices, as well as timing differences pertaining
to working capital, partially offset by lower royalties and current taxes.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Fund flows from operations

| | · | Generated fund flows from operations
of $136.4 million during Q4 2015, an increase of 5% over Q3 2015. This quarter-over-quarter increase occurred despite lower commodity
pricing, driven primarily by production growth in all business units, lower current taxes, and higher receipts from commodity hedges.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Fund flows from operations decreased
by 26% and 36% for the three months and year ended December 31, 2015, respectively, versus the comparable periods in 2014. These
decreases were primarily driven by lower crude oil pricing, partially offset by higher sold volumes resulting from significant
production growth, global cost reductions, and favourable current tax and royalty variances. The decrease in fund flows from operations
for the year ended December 31, 2015 was also partially offset by the previously mentioned recovery of costs in France.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Net debt

| | · | Net debt increased by $116.3 million
to $1.38 billion for the year ended December 31, 2015 due to capital expenditures in Canada, France, and Ireland, partially offset
by fund flows from operations.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Dividends

| | · | Declared dividends
of $0.215 per common share per month during the fourth quarter of 2015, totalling $2.58 per common share for the year ended December
31, 2015.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------



7


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




COMMODITY
PRICES



|                                            | Three
    Months Ended |             | %
    change |  |               | Year
    Ended |  | %
    change
|------------------------------------------- | ---------------------- | ----------- | ------------ |  | ------------- | -------------- |  | ------------
|                                            | Dec
    31,            | Sep
    30, | Dec
    31,  |  | Q4/15
    vs. | Q4/15
    vs.  |  |             
|                                            | 2015                   | 2015        | 2014         |  | Q3/15         | Q4/14          |  |             
|Average
    reference prices                |                        |             |              |  |               |                |  |             
|Crude
    oil                               |                        |             |              |  |               |                |  |             
|WTI
    (US $/bbl)                          | 42.18                  | 46.43       | 73.15        |  | (9%)          | (42%)          |  |             
|Edmonton
    Sweet index (US $/bbl)         | 39.72                  | 43.01       | 66.79        |  | (8%)          | (41%)          |  |             
|Dated
    Brent (US $/bbl)                  | 43.69                  | 50.26       | 76.27        |  | (13%)         | (43%)          |  |             
|Natural
    gas                             |                        |             |              |  |               |                |  |             
|AECO
    ($/mmbtu)                          | 2.46                   | 2.90        | 3.60         |  | (15%)         | (32%)          |  |             
|TTF
    ($/mmbtu)                           | 7.28                   | 8.48        | 9.16         |  | (14%)         | (21%)          |  |             
|TTF
    (€/mmbtu)                           | 4.98                   | 5.82        | 6.46         |  | (14%)         | (23%)          |  |             
|NBP
    ($/mmbtu)                           | 7.41                   | 8.40        | 9.52         |  | (12%)         | (22%)          |  |             
|NBP
    (€/mmbtu)                           | 5.07                   | 5.77        | 6.71         |  | (12%)         | (24%)          |  |             
|Henry
    Hub ($/mmbtu)                     | 3.03                   | 3.62        | 4.54         |  | (16%)         | (33%)          |  |             
|Henry
    Hub (US $/mmbtu)                  | 2.27                   | 2.77        | 4.00         |  | (18%)         | (43%)          |  |             
|Average
    foreign currency exchange rates |                        |             |              |  |               |                |  |             
|CDN
    $/US $                              | 1.34                   | 1.31        | 1.14         |  | 2%            | 18%            |  |             
|CDN
    $/Euro                              | 1.46                   | 1.46        | 1.42         |  | -             | 3%             |  |             
|Average
    realized prices ($/boe)         |                        |             |              |  |               |                |  |             
|Canada                                      | 28.94                  | 32.78       | 51.27        |  | (12%)         | (44%)          |  |             
|France                                      | 54.20                  | 60.96       | 79.25        |  | (11%)         | (32%)          |  |             
|Netherlands                                 | 42.61                  | 49.42       | 52.07        |  | (14%)         | (18%)          |  |             
|Germany                                     | 39.68                  | 44.36       | 49.19        |  | (11%)         | (19%)          |  |             
|Australia                                   | 58.74                  | 68.20       | 90.37        |  | (14%)         | (35%)          |  |             
|United
    States                           | 41.94                  | 51.60       | 74.08        |  | (19%)         | (43%)          |  |             
|Consolidated                                | 41.04                  | 46.56       | 63.79        |  | (12%)         | (36%)          |  |             
|Production
    mix (% of production)        |                        |             |              |  |               |                |  |             
|%
    priced with reference to WTI          | 22%                    | 24%         | 28%          |  |               |                |  |             
|%
    priced with reference to AECO         | 24%                    | 22%         | 20%          |  |               |                |  |             
|%
    priced with reference to TTF          | 20%                    | 20%         | 16%          |  |               |                |  |             
|%
    priced with reference to Dated Brent  | 34%                    | 34%         | 36%          |  |               |                |  |             



Reference prices



| | · | Oil benchmarks faced strong headwinds
throughout the fourth quarter, causing both WTI and Dated Brent to average the quarter at US $42.18/bbl and US $43.69/bbl respectively.
Compared to the previous quarter, WTI was down an additional 9% whereas Dated Brent averaged 13% lower versus the previous quarter.
On a year-over-year basis, WTI was down 48% and Dated Brent was down 47%.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Crude oil prices set at Edmonton
were less volatile during the fourth quarter, but still tracked lower to average the quarter at US $39.72/bbl, or 8% lower quarter-over-quarter,
and 41% lower year-over-year.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | AECO natural gas suffered a 15%
quarter-over-quarter decline as high levels of gas-in-storage, strong field receipts, and below-normal demand weighed on the market.
Averaging $2.46/mmbtu for the three months ending December 31, 2015, AECO was down 32% versus the same quarter in 2014.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Despite having lower gas-in-storage,
a mild start to winter and the anticipation of increasing LNG supply reduced European natural gas prices in Q4 2015, driving similar
movements in TTF and NBP reference prices. For the fourth quarter, TTF averaged $7.28/mmbtu, which was 14% lower versus the previous
quarter and 21% lower versus the same quarter in the prior year. In Euro terms, TTF averaged the quarter at €4.98/mmbtu, which
was a 14% decrease versus Q3 2015, and 23% lower year-over-year.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Weakness in the price of oil and
a rate hike by the US Federal Reserve in December kept the Canadian dollar on its declining path against the US dollar; however,
a similar impact was felt by the Euro versus the US dollar, causing CDN $/Euro to remain flat quarter-over-quarter.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Realized prices



| | · | Consolidated realized price decreased
by 12% for Q4 2015 as compared to Q3 2015. This decrease was primarily the result of weakening crude oil and natural gas pricing.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Consolidated realized price for
the three months and year ended December 31, 2015 decreased by 36% and 39%, respectively, as compared to the comparable periods
in 2014. These decreases were due to weakening commodity prices, primarily driven by a weakening of crude oil and North American
natural gas prices, as well as changes in production mix, which included increased relative NGL and natural gas volumes in Canada.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



8


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




FUND FLOWS FROM OPERATIONS



|                                            | Three
    Months Ended |         |                  | Year
    Ended
|------------------------------------------- | ---------------------- | ------- | ---------------- | --------------
|                                            | Dec
    31, 2015       |         | Sep
    30, 2015 |               
|                                            | $M                     | $/boe   |                  | $M            
|Petroleum
    and natural gas sales         | 234,319                | 41.04   |                  | 245,051       
|Royalties                                   | (16,285)               | (2.85)  |                  | (17,100)      
|Petroleum
    and natural gas revenues      | 218,034                | 38.19   |                  | 227,951       
|Transportation
    expense                  | (10,147)               | (1.78)  |                  | (11,090)      
|Operating
    expense                       | (65,645)               | (11.50) |                  | (57,826)      
|General
    and administration              | (12,431)               | (2.18)  |                  | (13,088)      
|PRRT                                        | (1,054)                | (0.18)  |                  | (99)          
|Corporate
    income taxes                  | 3,113                  | 0.55    |                  | (12,383)      
|Interest
    expense                        | (16,584)               | (2.90)  |                  | (15,420)      
|Realized
    gain on derivative instruments | 21,164                 | 3.71    |                  | 10,854        
|Realized
    foreign exchange (loss) gain   | (252)                  | (0.04)  |                  | 309           
|Realized
    other income                   | 243                    | 0.04    |                  | 227           
|Fund
    flows from operations              | 136,441                | 23.91   |                  | 129,435       



The following table shows a reconciliation
of the change in fund flows from operations:



|($M)                                            | Q4/15 vs. Q3/15 | Q4/15 vs. Q4/14 | 2015 vs. 2014
|----------------------------------------------- | --------------- | --------------- | -------------
|Fund flows from operations – Comparative period | 129,435         | 185,528         | 804,865      
|Sales volume variance:                          |                 |                 |              
|Canada                                          | 1,779           | 3,636           | 24,239       
|France                                          | (5,232)         | 8,916           | 36,817       
|Netherlands                                     | 2,104           | 20,038          | 21,601       
|Germany                                         | 1,478           | (1,153)         | 2,245        
|Ireland                                         | 57              | 57              | 57           
|Australia                                       | 16,350          | 2,802           | (19,697)     
|United States                                   | 1,051           | 524             | 2,948        
|Pricing variance on sold volumes:               |                 |                 |              
|WTI                                             | (3,075)         | (32,707)        | (195,644)    
|AECO                                            | (2,507)         | (9,461)         | (45,760)     
|Dated Brent                                     | (15,632)        | (53,825)        | (287,666)    
|TTF                                             | (7,105)         | (10,581)        | (19,182)     
|Changes in:                                     |                 |                 |              
|Royalties                                       | 815             | 9,678           | 42,080       
|Transportation                                  | 943             | (658)           | 701          
|Operating expense                               | (7,819)         | (5,764)         | 6,369        
|General and administration                      | 657             | 805             | 8,143        
|PRRT                                            | (955)           | 12,514          | 53,462       
|Corporate income taxes                          | 15,496          | 11,417          | 52,759       
|Interest                                        | (1,164)         | (3,641)         | (10,197)     
|Realized derivatives                            | 10,310          | (1,652)         | 4,644        
|Realized foreign exchange                       | (561)           | (73)            | 1,444        
|Realized other income                           | 16              | 41              | 31,939       
|Fund flows from operations – Current period     | 136,441         | 136,441         | 516,167      



9


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




Fund flows from operations of $136.4
million during Q4 2015 represented an increase of 5% versus Q3 2015. Quarter-over-quarter, the increase was achieved, despite significant
commodity price declines, as a result of higher sold volumes driven by production growth in every business unit, lower current
taxes, and increased receipts from commodity hedges.



Fund flows from operations decreased
26% and 36% for the three months and year ended December 31, 2015, respectively, versus the comparable periods in 2014. The 2015
decreases were primarily driven by unfavourable crude oil and natural gas price variances, partially offset by higher sold volumes
resulting from significant production growth and global cost reductions, most notably in per unit operating expense which decreased
8% and 11% for the quarter and full year, respectively. The full year decrease in fund flows from operations was partially offset
by the previously mentioned recovery of costs in France.



Fluctuations in fund flows from operations
(and correspondingly net earnings (loss) and cash flows from operating activities) may occur as a result of changes in commodity
prices and costs to produce petroleum and natural gas. In addition, fund flows from operations may be highly affected by the timing
of crude oil shipments in Australia and France. When crude oil inventory is built up, the related operating expense, royalties,
and depletion expense are deferred and carried as inventory on the consolidated balance sheet. When the crude oil inventory is
subsequently drawn down, the related expenses are recognized in income.



10


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




CANADA BUSINESS UNIT



Overview

| | · | Production and assets focused in
West Pembina near Drayton Valley, Alberta and Northgate in southeast Saskatchewan.
| | - | -------------------------------------------------------------------------------------------------------------------

| | - | Potential for three significant resource plays sharing the same surface infrastructure in the West
Pembina region:
| | - | ------------------------------------------------------------------------------------------------------------------

| | - | Cardium light oil (1,800m depth) – in development phase
| | - | -------------------------------------------------------

| | - | Mannville condensate-rich gas (2,400 – 2,700m depth) – in development phase
| | - | ---------------------------------------------------------------------------

| | · | Duvernay condensate-rich gas (3,200
– 3,400m depth) – in appraisal phase
| | - | ------------------------------------------------------------------------

| | · | Canadian cash flows are fully tax-sheltered
for the foreseeable future.
| | - | -----------------------------------------------------------------------



Operational review



|                                |                               | Three
    Months Ended |             | %
    change |       |               | Year
    Ended |  | %
    change
|------------------------------- | ----------------------------- | ---------------------- | ----------- | ------------ | ----- | ------------- | -------------- |  | ------------
|                                |                               | Dec
    31,            | Sep
    30, | Dec
    31,  |       | Q4/15
    vs. | Q4/15
    vs.  |  |             
|Canada
    business unit        | 2015                          | 2015                   | 2014        |              | Q3/15 | Q4/14         |                |  | 2015        
|Production                      |                               |                        |             |              |       |               |                |  |             
|                                | Crude
    oil (bbls/d)        | 7,964                  | 9,195       | 11,384       |       | (13%)         | (30%)          |  |             
|                                | NGLs
    (bbls/d)             | 5,159                  | 4,513       | 2,741        |       | 14%           | 88%            |  |             
|                                | Natural
    gas (mmcf/d)      | 87.90                  | 71.94       | 58.36        |       | 22%           | 51%            |  |             
|                                | Total
    (boe/d)             | 27,773                 | 25,698      | 23,851       |       | 8%            | 16%            |  |             
|Production
    mix (% of total) |                               |                        |             |              |       |               |                |  |             
|                                | Crude
    oil                 | 29%                    | 36%         | 48%          |       |               |                |  |             
|                                | NGLs                          | 19%                    | 18%         | 11%          |       |               |                |  |             
|                                | Natural
    gas               | 52%                    | 46%         | 41%          |       |               |                |  |             
|Activity                        |                               |                        |             |              |       |               |                |  |             
|                                | Capital
    expenditures ($M) | 27,554                 | 37,224      | 85,442       |       | (26%)         | (68%)          |  |             
|                                | Acquisitions
    ($M)         | 6,169                  | 8,062       | 1,671        |       |               |                |  |             
|                                | Gross
    wells drilled       | 5.00                   | 11.00       | 23.00        |       |               |                |  |             
|                                | Net
    wells drilled         | 2.56                   | 6.91        | 15.16        |       |               |                |  |             



Production

| | · | Q4 2015 average production in Canada
increased by 8% quarter-over-quarter and 16% year-over-year. Full year average production increased 11% versus 2014. Quarterly
and annual increases were primarily due to strong organic production growth in our Mannville condensate-rich gas resource play.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | In early December 2015, some transportation
restrictions were lifted, resulting in approximately 1,000 boe/d of non-operated volumes being brought online. At the end of Q4
2015, approximately 1,600 boe/d of production was shut-in due to a lack of field compression capacity, but the majority of these
volumes are expected to be brought online in Q1 2016.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Cardium production averaged approximately
8,000 boe/d in Q4 2015, a 14% decrease quarter-over-quarter. Full year 2015 average production of approximately 9,100 boe/d represented
a decrease of 16% versus 2014.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Mannville production averaged approximately
11,000 boe/d in Q4 2015, a 57% increase quarter-over-quarter and more than 2.5 times Q4 2014 production of approximately 4,300
boe/d. Full year 2015 production averaged more than 7,100 boe/d, representing an 82% increase versus 2014.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Production from our southeast Saskatchewan
assets averaged approximately 2,500 boe/d in Q4 2015, a decrease of 17% quarter-over-quarter. The North Portal Gas Plant was commissioned
late in Q1 2015. The plant enables the processing of approximately 5,500 mcf/d (920 boe/d net) of natural gas which was previously
being flared.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



11


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




Activity review

| | · | Vermilion drilled two (2.0 net)
operated wells and participated in the drilling of three (0.6 net) non-operated wells during Q4 2015. During 2015, Vermilion drilled
20 (17.6 net) operated wells and participated in the drilling of 22 (8.4 net) non-operated wells in Canada.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Cardium

| | - | During Q4 2015, we participated in the drilling of two (0.3 net) non-operated wells; no wells were
placed on production.
| | - | ------------------------------------------------------------------------------------------------------------------------

| | - | In 2015, we drilled one (1.0 net) operated well and brought ten (9.3 net) operated wells on production.
We also participated in the drilling of eight (2.4 net) non-operated wells and six (2.1 net) non-operated wells were brought on
production.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | - | 2016 activity will focus on the optimization of existing assets.
| | - | ----------------------------------------------------------------



Mannville

| | - | During Q4 2015, we drilled two (2.0 net) operated wells and brought one (1.0 net) operated well
on production. We also participated in the drilling of one (0.3 net) non-operated well and one (0.4 net) non-operated well was
placed on production.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | - | In 2015, we drilled 14 (12.5 net) operated wells and brought 11 (9.5 net) operated wells on production.
We also participated in the drilling of 14 (6.0 net) non-operated wells, and ten (3.8 net) non-operated wells were placed on production.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | - | In 2016, we plan to drill or participate in approximately six (4.0 net) wells.
| | - | ------------------------------------------------------------------------------



Saskatchewan

| | - | We drilled and brought on production five (4.1 net) operated Midale wells during Q1 2015, completing
our 2015 drilling activity in Saskatchewan.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------

| | - | In 2016, we plan to drill or participate in six (5.5 net) wells.
| | - | ----------------------------------------------------------------



12


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




Financial review



|                         |                                    | Three Months Ended | % change |           |           | Year Ended |  | % change
|------------------------ | ---------------------------------- | ------------------ | -------- | --------- | --------- | ---------- |  | --------
|Canada business unit     | Dec 31,                            | Sep 30,            | Dec 31,  | Q4/15 vs. | Q4/15 vs. |            |  | Dec 31, 
|($M except as indicated) | 2015                               | 2015               | 2014     | Q3/15     | Q4/14     |            |  | 2015    
|                         | Sales                              | 73,952             | 77,493   | 112,494   | (5%)      | (34%)      |  |         
|                         | Royalties                          | (7,146)            | (6,638)  | (15,626)  | 8%        | (54%)      |  |         
|                         | Transportation expense             | (3,784)            | (4,131)  | (3,455)   | (8%)      | 10%        |  |         
|                         | Operating expense                  | (24,575)           | (23,877) | (19,315)  | 3%        | 27%        |  |         
|                         | General and administration         | (3,669)            | (3,694)  | (2,840)   | (1%)      | 29%        |  |         
|                         | Fund flows from operations         | 34,778             | 39,153   | 71,258    | (11%)     | (51%)      |  |         
|Netbacks ($/boe)         |                                    |                    |          |           |           |            |  |         
|                         | Sales                              | 28.94              | 32.78    | 51.27     | (12%)     | (44%)      |  |         
|                         | Royalties                          | (2.80)             | (2.81)   | (7.12)    | -         | (61%)      |  |         
|                         | Transportation expense             | (1.48)             | (1.75)   | (1.57)    | (15%)     | (6%)       |  |         
|                         | Operating expense                  | (9.62)             | (10.10)  | (8.80)    | (5%)      | 9%         |  |         
|                         | General and administration         | (1.44)             | (1.56)   | (1.29)    | (8%)      | 12%        |  |         
|                         | Fund flows from operations netback | 13.60              | 16.56    | 32.49     | (18%)     | (58%)      |  |         
|Reference prices         |                                    |                    |          |           |           |            |  |         
|                         | WTI (US $/bbl)                     | 42.18              | 46.43    | 73.15     | (9%)      | (42%)      |  |         
|                         | Edmonton Sweet index (US $/bbl)    | 39.72              | 43.01    | 66.79     | (8%)      | (41%)      |  |         
|                         | Edmonton Sweet index ($/bbl)       | 53.04              | 56.32    | 75.85     | (6%)      | (30%)      |  |         
|                         | AECO ($/mcf)                       | 2.46               | 2.90     | 3.60      | (15%)     | (32%)      |  |         



Sales

| | · | The realized price for our crude
oil production in Canada is directly linked to WTI, but is also subject to market conditions in Western Canada. These market conditions
can result in fluctuations in the pricing differential to WTI, as reflected by the Edmonton Sweet index price. The realized price
of our NGLs in Canada is based on product specific differentials pertaining to trading hubs in the United States. The realized
price of our natural gas in Canada is based on the AECO spot price in Canada.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Q4 2015 and full year 2015 sales
per boe decreased versus all comparable periods, largely as the result of weakening crude oil and natural gas pricing.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------



Royalties

| | · | Royalties as a percentage of sales
for Q4 2015 of 9.7% was slightly higher than the 8.6% for Q3 2015 due to the absence of certain royalty credits recorded in the
third quarter.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Royalties as a percentage of sales
for the three months and year ended December 31, 2015 decreased to 9.7% and 8.8% versus the same periods in 2014 (13.9% and 12.2%,
respectively) due to the impact of lower reference prices on the sliding scale used to determine crude oil royalty rates.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Transportation

| | · | Transportation expense relates to
the delivery of crude oil and natural gas production to major pipelines where legal title transfers.
| | - | --------------------------------------------------------------------------------------------------------------------------------------

| | · | Transportation expense for the three
months and year ended December 31, 2015 was higher than the comparable periods in 2014 due to increased natural gas and natural
gas liquids volumes produced in 2015. In addition, full year 2015 expense includes incremental trucking costs from Vermilion’s
Saskatchewan properties, which were acquired in April 2014.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





Operating expense

| | · | Operating expense was higher in
Q4 2015 versus Q4 2014 due to higher gas gathering and processing expenditures following significantly increased natural gas and
natural gas liquids production. For Q4 2015 versus Q3 2015, this increase was largely offset by cost reduction initiatives including
reduced major project, transportation and other costs, resulting in a 5% reduction in per unit costs.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Full year operating expense increased
on a spend basis by approximately 17% due to incremental operating expense associated with Vermilion’s Saskatchewan properties
acquired in Q2 2014 and higher gas gathering and processing fees following increased natural gas and natural gas liquids production
in Alberta. This increase in spending was partially offset by increased production volumes, resulting in a 5% increase in operating
expense per boe.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



13


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




General and administration

| | · | General and administration
expense increased from Q4 2014 primarily due to a decrease in recoveries, which more than offset lower gross costs.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------

| | · | Year-over-year,
2015 general and administrative expense were essentially flat due to lower current year recoveries more than offsetting a decrease
in gross costs.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------



Impairment

| | · | For the three months
and year ended December 31, 2015, Vermilion recorded an impairment charge of $131.6 million and $274.6 million, respectively, related
to the light crude oil play in Saskatchewan, Canada ($267.9 million in 2015) and the shallow coal bed methane gas properties in
Alberta, Canada ($6.7 million in 2015). These impairment charges were a result of declines in the price forecasts for crude oil
and natural gas in Canada which decreased the expected future cash flows from the respective cash generating units.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



14


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




FRANCE BUSINESS UNIT



Overview

| | · | Entered France in 1997 and completed
three subsequent acquisitions, including two in 2012.
| | - | ------------------------------------------------------------------------------------------

| | · | Largest oil producer in France,
constituting approximately three-quarters of domestic oil production.
| | - | -----------------------------------------------------------------------------------------------------

| | · | Producing assets include large conventional
fields with high working interests located in the Aquitaine and Paris Basins with an identified inventory of workover, infill drilling,
and secondary recovery opportunities.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Production is characterized by Brent-based
crude pricing and low base decline rates.
| | - | ------------------------------------------------------------------------------------



Operational review



|                            |                             | Three Months Ended |         | % change |       |           | Year Ended |  | % change
|--------------------------- | --------------------------- | ------------------ | ------- | -------- | ----- | --------- | ---------- |  | --------
|                            |                             | Dec 31,            | Sep 30, | Dec 31,  |       | Q4/15 vs. | Q4/15 vs.  |  |         
|France business unit        | 2015                        | 2015               | 2014    |          | Q3/15 | Q4/14     |            |  | 2015    
|Production                  |                             |                    |         |          |       |           |            |  |         
|                            | Crude oil (bbls/d)          | 12,537             | 12,310  | 11,133   |       | 2%        | 13%        |  |         
|                            | Natural gas (mmcf/d)        | 1.36               | 1.47    | -        |       | (7%)      | 100%       |  |         
|                            | Total (boe/d)               | 12,763             | 12,555  | 11,133   |       | 2%        | 15%        |  |         
|Inventory (mbbls)           |                             |                    |         |          |       |           |            |  |         
|                            | Opening crude oil inventory | 239                | 340     | 214      |       |           |            |  |         
|                            | Crude oil production        | 1,153              | 1,133   | 1,024    |       |           |            |  |         
|                            | Crude oil sales             | (1,149)            | (1,234) | (1,041)  |       |           |            |  |         
|                            | Closing crude oil inventory | 243                | 239     | 197      |       |           |            |  |         
|Production mix (% of total) |                             |                    |         |          |       |           |            |  |         
|                            | Crude oil                   | 98%                | 98%     | 100%     |       |           |            |  |         
|                            | Natural gas                 | 2%                 | 2%      | -        |       |           |            |  |         
|Activity                    |                             |                    |         |          |       |           |            |  |         
|                            | Capital expenditures ($M)   | 24,085             | 17,369  | 37,189   |       | 39%       | (35%)      |  |         
|                            | Acquisitions ($M)           | 79                 | 142     | -        |       |           |            |  |         
|                            | Gross wells drilled         | -                  | -       | 1.00     |       |           |            |  |         
|                            | Net wells drilled           | -                  | -       | 0.50     |       |           |            |  |         



Production

| | · | Ongoing workover and optimization
activities in Q4 2015 resulted in stable quarter-over-quarter production. Production increased versus 2014, for both the quarter
and full year periods, due to production additions from our 2015 Champotran drilling program and workovers.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Activity review

| | · | Vermilion drilled four (4.0 net)
wells in the Champotran field in the Paris Basin in Q1 2015, completing our planned France drilling program for 2015.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | In 2015, additional activity included
workover and optimization programs in the Aquitaine and Paris Basins, and the resumption of sales from a portion of our shut-in
natural gas at Vic Bilh, which was brought back on-line in Q2 2015.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | In 2016, our planned capital activity
includes a program of approximately 15 well workovers.
| | - | --------------------------------------------------------------------------------------------



15


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




Financial review



|                         |                                    | Three Months Ended |          | % change |           |           | Year Ended |  | % change
|------------------------ | ---------------------------------- | ------------------ | -------- | -------- | --------- | --------- | ---------- |  | --------
|France business unit     | Dec 31,                            | Sep 30,            | Dec 31,  |          | Q4/15 vs. | Q4/15 vs. |            |  | Dec 31, 
|($M except as indicated) | 2015                               | 2015               | 2014     |          | Q3/15     | Q4/14     |            |  | 2015    
|                         | Sales                              | 63,411             | 76,552   | 82,499   |           | (17%)     | (23%)      |  |         
|                         | Royalties                          | (7,198)            | (8,038)  | (6,319)  |           | (10%)     | 14%        |  |         
|                         | Transportation expense             | (4,275)            | (4,566)  | (4,096)  |           | (6%)      | 4%         |  |         
|                         | Operating expense                  | (15,792)           | (11,998) | (13,544) |           | 32%       | 17%        |  |         
|                         | General and administration         | (4,894)            | (5,338)  | (3,765)  |           | (8%)      | 30%        |  |         
|                         | Other income                       | -                  | -        | -        |           | -         | -          |  |         
|                         | Current income taxes               | 4,529              | (4,696)  | (6,132)  |           | (196%)    | (174%)     |  |         
|                         | Fund flows from operations         | 35,781             | 41,916   | 48,643   |           | (15%)     | (26%)      |  |         
|Netbacks ($/boe)         |                                    |                    |          |          |           |           |            |  |         
|                         | Sales                              | 54.20              | 60.96    | 79.25    |           | (11%)     | (32%)      |  |         
|                         | Royalties                          | (6.15)             | (6.40)   | (6.07)   |           | (4%)      | 1%         |  |         
|                         | Transportation expense             | (3.65)             | (3.64)   | (3.94)   |           | -         | (7%)       |  |         
|                         | Operating expense                  | (13.50)            | (9.55)   | (13.01)  |           | 41%       | 4%         |  |         
|                         | General and administration         | (4.18)             | (4.25)   | (3.62)   |           | (2%)      | 15%        |  |         
|                         | Other income                       | -                  | -        | -        |           | -         | -          |  |         
|                         | Current income taxes               | 3.87               | (3.74)   | (5.89)   |           | (203%)    | (166%)     |  |         
|                         | Fund flows from operations netback | 30.59              | 33.38    | 46.72    |           | (8%)      | (35%)      |  |         
|Reference prices         |                                    |                    |          |          |           |           |            |  |         
|                         | Dated Brent (US $/bbl)             | 43.69              | 50.26    | 76.27    |           | (13%)     | (43%)      |  |         
|                         | Dated Brent ($/bbl)                | 58.34              | 65.81    | 86.62    |           | (11%)     | (33%)      |  |         



Sales

| | · | Crude oil in France is priced with
reference to Dated Brent.
| | - | ------------------------------------------------------------

| | · | Sales per boe decreased quarter-over-quarter,
consistent with a decrease in the Dated Brent reference price. This decrease in price was combined with decreased sales volumes
due to a slight build in inventory of 4,000 bbls in Q4 (versus a draw in Q3 2015).
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | On a year-over-year basis, sales
decreased for the three months and year ended December 31, 2015, consistent with a decline in the Dated Brent reference price,
and was partially offset by increased sales volumes driven by production growth.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Royalties

| | · | Royalties in France relate to two
components: RCDM (levied on units of production and not subject to changes in commodity prices) and R31 (based on a percentage
of sales).
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Royalties as a percentage of sales
of 11.4% and 9.6% for the three months and year ended December 31, 2015 was higher than Q3 2015 (10.5%) and the 2014 periods (7.7%
and 6.6%, respectively) as a result of the impact of fixed RCDM royalties coupled with lower realized pricing.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Transportation

| | · | Transportation expense for Q4 2015
was relatively consistent with both Q3 2015 and Q4 2014.
| | - | -------------------------------------------------------------------------------------------

| | · | Transportation expense decreased
by 19% for 2015 versus 2014 due to a lower level of maintenance and project activity at the Ambès terminal coupled with
the favourable foreign exchange impact of the strengthening of the Canadian dollar versus the Euro.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Operating expense

| | · | Operating expense on a dollar and
per boe basis increased in Q4 2015 versus both Q3 2015 and Q4 2014 due to increased electricity usage and costs coupled with a
higher level of project activity in the current quarter.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Operating expense on a dollar and
per boe basis decreased in 2015 versus 2014 due largely to the successful implementation of cost reduction initiatives undertaken
in response to commodity price weakness. These cost reduction initiatives included lower costs on downhole and other maintenance
activities, lower labour usage and costs and savings from service contract renegotiations. These cost cutting initiatives were
delivered while growing production during the year by 13%, resulting in a 25% decrease in unit costs.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



16


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




General and administration

| | · | General and administration expense
for Q4 2015 was 8% lower than Q3 2015 and 30% higher than Q4 2014. These fluctuations in general and administration expense for
the quarters presented primarily result from variances in the timing of spending, including the timing of allocations from our
Corporate segment.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Year-over-year, 2015 general and
administration expense was 3% lower than 2014 due to the impact of a number of cost reduction initiatives undertaken in response
to commodity price weakness, including a reduction in third party consultant expenditures.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Other income

| | · | Included in the results for the
year ended December 31, 2015 is a judgment award pertaining to costs incurred as a result of an oil spill at the Ambès oil
terminal in France that occurred in 2007.  As a result of the award, $31.8 million (before taxes) was recognized as other
income.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Current income taxes

| | · | Current income
taxes in France are applied to taxable income, after eligible deductions, at a statutory rate of 34.4% for 2015.  France is
not expected to incur any current income taxes for 2016. This is subject to change in response to commodity price fluctuations,
the timing of capital expenditures, and other eligible in-country adjustments.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Q4 2015 current
income taxes decreased compared to Q3 2015 and Q4 2014 due to decreased revenues and additional tax deductions taken for depletion.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Current income
taxes for the full year ended December 31, 2015 decreased versus the comparative period in 2014 mainly due to lower fund flows
from operations as a result of the decline in the Dated Brent reference price and additional tax deductions taken for depletion.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



17


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




NETHERLANDS BUSINESS UNIT



Overview

| | · | Entered the Netherlands in 2004.
| | - | --------------------------------

| | · | Second largest onshore gas producer.
| | - | ------------------------------------

| | · | Interests include 24 onshore licenses
and two offshore licenses.
| | - | ----------------------------------------------------------------

| | · | Licenses include more than 800,000
net acres of undeveloped land.
| | - | -----------------------------------------------------------------

| | · | Natural gas drilling and development.
| | - | -------------------------------------

| | · | Natural gas produced in the Netherlands
is priced off the TTF index, which receives a significant premium over North American gas prices.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------



Operational review



|                          |                           | Three Months Ended |         | % change |       |           | Year Ended |  | % change
|------------------------- | ------------------------- | ------------------ | ------- | -------- | ----- | --------- | ---------- |  | --------
|                          |                           | Dec 31,            | Sep 30, | Dec 31,  |       | Q4/15 vs. | Q4/15 vs.  |  |         
|Netherlands business unit | 2015                      | 2015               | 2014    |          | Q3/15 | Q4/14     |            |  | 2015    
|Production                |                           |                    |         |          |       |           |            |  |         
|                          | NGLs (bbls/d)             | 110                | 109     | 81       |       | 1%        | 36%        |  |         
|                          | Natural gas (mmcf/d)      | 56.34              | 53.56   | 31.35    |       | 5%        | 80%        |  |         
|                          | Total (boe/d)             | 9,500              | 9,035   | 5,306    |       | 5%        | 79%        |  |         
|Activity                  |                           |                    |         |          |       |           |            |  |         
|                          | Capital expenditures ($M) | 18,810             | 5,297   | 10,022   |       | 255%      | 88%        |  |         
|                          | Gross wells drilled       | -                  | -       | 2.00     |       |           |            |  |         
|                          | Net wells drilled         | -                  | -       | 0.92     |       |           |            |  |         



Production

| | · | Q4 2015 production represented a
new record for our Netherlands Business Unit at 9,500 boe/d, which is an increase of 5% from the prior quarter. This increase is
primarily attributable to production from the Diever-02 exploration well (45% working interest), coming on an extended production
test in late October. Diever-02 is currently producing approximately 13.2 mmcf/d (2,200 boe/d) net to Vermilion.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Q4 2015 production increased 79%
year-over-year, mainly driven by the extended production test of three wells: Slootdorp-06/07 (92.8% working interest) and Diever-02
(45% working interest). Slootdorp-06/07 were drilled in Q2 2015 and placed on an extended production test in the following quarter.
Slootdorp-06/07 are currently producing approximately 25.8 mmcf/d (4,300 boe/d) net to Vermilion.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | 2015 average production increased
17% versus 2014. Production additions from the Slootdorp-06/07 and Diever-02 wells later in the year were partially offset by the
loss of production from our Middenmeer-3 well, which was fully depleted and taken offline in February 2015. The depletion of this
well occurred as expected. The turnaround at the Garijp Treatment Centre during Q2 2015 further impacted current year production.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Production in the Netherlands is actively managed to optimize
facility use and regulate declines.
| | - | -------------------------------------------------------------------------------------------------



Activity review

| | · | During Q2 2015, Vermilion drilled
two (1.9 net) wells, Slootdorp-06 and Slootdorp-07. These wells are currently on sales during an extended production test to size
additional production equipment.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | The Diever-02 exploration well (45%
working interest), drilled in 2014, came on production in late October for an extended production test
| | - | ------------------------------------------------------------------------------------------------------------------------------------------

| | · | During the year, we executed numerous
debottlenecking activities to enhance deliverability from the Slootdorp wells as well as a turnaround at the Garijp Treatment Centre.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Activity in 2016 will focus on permitting
and optimization initiatives.
| | - | -----------------------------------------------------------------------



18


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




Financial review



|                          |                                    | Three Months Ended |         | % change |           |           | Year Ended |  | % change
|------------------------- | ---------------------------------- | ------------------ | ------- | -------- | --------- | --------- | ---------- |  | --------
|Netherlands business unit | Dec 31,                            | Sep 30,            | Dec 31, |          | Q4/15 vs. | Q4/15 vs. |            |  | Dec 31, 
|($M except as indicated)  | 2015                               | 2015               | 2014    |          | Q3/15     | Q4/14     |            |  | 2015    
|                          | Sales                              | 37,243             | 41,083  | 25,420   |           | (9%)      | 47%        |  |         
|                          | Royalties                          | (224)              | (638)   | (1,171)  |           | (65%)     | (81%)      |  |         
|                          | Operating expense                  | (6,263)            | (5,243) | (6,200)  |           | 19%       | 1%         |  |         
|                          | General and administration         | (813)              | (2,154) | (2,489)  |           | (62%)     | (67%)      |  |         
|                          | Current income taxes               | (2,930)            | (4,487) | 2,124    |           | (35%)     | (238%)     |  |         
|                          | Fund flows from operations         | 27,013             | 28,561  | 17,684   |           | (5%)      | 53%        |  |         
|Netbacks ($/boe)          |                                    |                    |         |          |           |           |            |  |         
|                          | Sales                              | 42.61              | 49.42   | 52.07    |           | (14%)     | (18%)      |  |         
|                          | Royalties                          | (0.26)             | (0.77)  | (2.40)   |           | (66%)     | (89%)      |  |         
|                          | Operating expense                  | (7.17)             | (6.31)  | (12.70)  |           | 14%       | (44%)      |  |         
|                          | General and administration         | (0.93)             | (2.59)  | (5.10)   |           | (64%)     | (82%)      |  |         
|                          | Current income taxes               | (3.35)             | (5.40)  | 4.35     |           | (38%)     | (177%)     |  |         
|                          | Fund flows from operations netback | 30.90              | 34.35   | 36.22    |           | (10%)     | (15%)      |  |         
|Reference prices          |                                    |                    |         |          |           |           |            |  |         
|                          | TTF ($/mmbtu)                      | 7.28               | 8.48    | 9.16     |           | (14%)     | (21%)      |  |         
|                          | TTF (€/mmbtu)                      | 4.98               | 5.82    | 6.46     |           | (14%)     | (23%)      |  |         



Sales

| | · | The price of our 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, continues to purchase all of the natural
gas we produce in the Netherlands.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Sales per boe decreased 14% quarter-over-quarter,
consistent with a decrease in the TTF reference price. The decrease in price was partially offset by a 5% increase in production,
resulting in a 9% decrease in sales.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | On a year-over-year basis, sales
per boe decreased, consistent with declines in the TTF reference price for the respective periods. For the three months ended December
31, 2015, the decrease in price was more than offset by a 79% increase in production. For the year ended December 31, 2015, the
decrease in price was offset by a 17% increase in production.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Royalties

| | · | In the Netherlands, we pay overriding
royalties on certain wells associated with an acquisition completed by the Netherlands business unit in October 2013.  As
such, fluctuations in royalty expense in the periods presented relate to the amount of production from those wells subject to overriding
royalties.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Transportation expense

| | · | Our production in the Netherlands is not subject to transportation
expense as gas is sold at the plant gate.
| | - | ------------------------------------------------------------------------------------------------------------



Operating expense

| | · | Q4 2015 operating expenses on a
dollar and per boe basis increased versus Q3 2015 as a result of higher power usage and gas processing tariffs associated with
our Diever-02 exploration well, which came on production in late October 2015.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | 2015 operating expenses decreased
by 5% on a dollar basis compared to 2014 due in equal parts to the favourable foreign exchange impact of a stronger Canadian dollar
coupled with reduced facility operation expenditures following cost reduction initiatives undertaken in response to commodity price
weakness. These cost reduction initiatives were executed while growing production 17%, resulting in a 19% reduction in per unit
costs.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



General and administration

| | · | Variances in general and administration
expense generally relate to timing of expenditures, including the timing of allocations from Vermilion’s Corporate segment.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------



19


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




Current income taxes

| | · | Current income
taxes in the Netherlands apply to taxable income after eligible deductions at an implied tax rate of approximately 46%. For 2016,
the effective rate on current taxes is expected to be between approximately 13% and 15%. This rate is subject to change in response
to commodity price fluctuations, the timing of capital expenditures, and other eligible in-country adjustments.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Current income
taxes in Q4 2015 were lower compared to Q3 2015 due to decreased revenues. Current income taxes in Q4 2015 compared to Q4 2014
were higher due to increased revenues.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Current income
taxes for the full year ended December 31, 2015 were higher compared to 2014 as increased revenues in 2015 were combined with comparatively
lower tax depletion due to accelerated tax deductions recognized in 2014.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



20


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




GERMANY BUSINESS UNIT



Overview

| | · | Vermilion entered Germany in February
2014.
| | - | -------------------------------------------

| | · | Holds a 25% interest in a four partner
consortium. Associated assets include four gas producing fields spanning 11 production licenses as well as an exploration license
in surrounding fields. Total license area comprises 204,000 gross acres, of which 85% is in the exploration license.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Entered into a farm-in agreement
in July 2015 that provides Vermilion with participating interest in 19 onshore exploration licenses in northwest Germany, comprising
approximately 850,000 net undeveloped acres of oil and natural gas rights.  Vermilion will assume operatorship for 11 of the
19 licenses during the exploration phase.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Awarded 110,000 net acres (100%
working interest) across two exploration licenses in Lower Saxony.
| | - | --------------------------------------------------------------------------------------------------



Operational review



|                      |                           | Three Months Ended |         | % change |       |           | Year Ended |  | % change
|--------------------- | ------------------------- | ------------------ | ------- | -------- | ----- | --------- | ---------- |  | --------
|                      |                           | Dec 31,            | Sep 30, | Dec 31,  |       | Q4/15 vs. | Q4/15 vs.  |  |         
|Germany business unit | 2015                      | 2015               | 2014    |          | Q3/15 | Q4/14     |            |  | 2015    
|Production            |                           |                    |         |          |       |           |            |  |         
|                      | Natural gas (mmcf/d)      | 16.17              | 14.00   | 17.71    |       | 16%       | (9%)       |  |         
|                      | Total (boe/d)             | 2,695              | 2,333   | 2,952    |       | 16%       | (9%)       |  |         
|Activity              |                           |                    |         |          |       |           |            |  |         
|                      | Capital expenditures ($M) | (441)              | 1,605   | 563      |       | (127%)    | (178%)     |  |         
|                      | Acquisitions ($M)         | -                  | -       | -        |       |           |            |  |         
|                      | Gross wells drilled       | -                  | -       | -        |       |           |            |  |         
|                      | Net wells drilled         | -                  | -       | -        |       |           |            |  |         



Production

| | · | Q4 2015 production increased by
16% quarter-over-quarter due to a planned maintenance shutdown in Q3 2015 and decreased 9% year-over-year due to additions from
the Deblinghausen Z7a well that was brought on production in Q4 2014. Full year production increased 5% versus prior year, due
to 2014 volumes only reflecting production from the acquisition’s effective date of February 1, 2014.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Activity review

| | · | The Burgmoor Z3a sidetrack well
(25% working interest), was completed in Q2 2015 and was tied-in and placed on production in Q3 2015.
| | - | -------------------------------------------------------------------------------------------------------------------------------------

| | · | In 2016, the majority of activity
will be associated with permitting and pre-drill activities for Burgmoor Z5 and two farm-in prospects. In addition, we will continue
our ongoing analysis of the proprietary geologic data associated with the farm-in assets.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



21


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




Financial review



|                         |                                    | Three Months Ended |         | % change |           |           | Year Ended |  | % change
|------------------------ | ---------------------------------- | ------------------ | ------- | -------- | --------- | --------- | ---------- |  | --------
|Germany business unit    | Dec 31,                            | Sep 30,            | Dec 31, |          | Q4/15 vs. | Q4/15 vs. |            |  | Dec 31, 
|($M except as indicated) | 2015                               | 2015               | 2014    |          | Q3/15     | Q4/14     |            |  | 2015    
|                         | Sales                              | 9,840              | 9,523   | 13,359   |           | 3%        | (26%)      |  |         
|                         | Royalties                          | (1,166)            | (1,477) | (2,481)  |           | (21%)     | (53%)      |  |         
|                         | Transportation expense             | (508)              | (627)   | (218)    |           | (19%)     | 133%       |  |         
|                         | Operating expense                  | (4,788)            | (2,796) | (2,862)  |           | 71%       | 67%        |  |         
|                         | General and administration         | (3,032)            | (1,311) | (2,200)  |           | 131%      | 38%        |  |         
|                         | Current income taxes               | -                  | -       | 1,145    |           | -         | (100%)     |  |         
|                         | Fund flows from operations         | 346                | 3,312   | 6,743    |           | (90%)     | (95%)      |  |         
|Netbacks ($/boe)         |                                    |                    |         |          |           |           |            |  |         
|                         | Sales                              | 39.68              | 44.36   | 49.19    |           | (11%)     | (19%)      |  |         
|                         | Royalties                          | (4.70)             | (6.88)  | (9.13)   |           | (32%)     | (49%)      |  |         
|                         | Transportation expense             | (2.05)             | (2.92)  | (0.80)   |           | (30%)     | 156%       |  |         
|                         | Operating expense                  | (19.31)            | (13.03) | (10.54)  |           | 48%       | 83%        |  |         
|                         | General and administration         | (12.22)            | (6.11)  | (8.10)   |           | 100%      | 51%        |  |         
|                         | Current income taxes               | -                  | -       | 4.21     |           | -         | (100%)     |  |         
|                         | Fund flows from operations netback | 1.40               | 15.42   | 24.83    |           | (91%)     | (94%)      |  |         
|Reference prices         |                                    |                    |         |          |           |           |            |  |         
|                         | TTF ($/mmbtu)                      | 7.28               | 8.48    | 9.16     |           | (14%)     | (21%)      |  |         
|                         | TTF (€/mmbtu)                      | 4.98               | 5.82    | 6.46     |           | (14%)     | (23%)      |  |         



Sales

| | · | The price of our 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 3% increase in sales quarter-over-quarter
is due to an increase in production, partially offset by decreases in the TTF reference price.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------

| | · | On a year-over-year basis, sales
per boe decreased for the three months and year ended December 31, 2015 consistent with movements in the TTF reference price. For
the three months ended December 31, 2015, this pricing decline was combined with a decrease in production. For the year ended December
31, 2015, the decrease in price was almost entirely offset by an increase in production.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Royalties

| | · | Our production in Germany is subject
to state and private royalties on sales after certain eligible deductions.
| | - | ---------------------------------------------------------------------------------------------------------------

| | · | In Q4 2015, royalties as a percentage
of sales was 11.8%, a decrease versus both the 15.5% for Q3 2015 and 18.6% for Q4 2014. The decrease in Q4 2015 versus both comparable
quarters was a result of adjustments to Q3 2015 royalties following preliminary royalty submissions recorded in the current quarter.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Full year 2015 royalties as a percentage
of sales was 15.7% versus 20.5% for 2014 as a result of lower state royalty rates in the current year.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------



Transportation expense

| | · | Transportation expense in Germany
relates to costs incurred to deliver natural gas from the processing facility to the customer.
| | - | --------------------------------------------------------------------------------------------------------------------------------

| | · | Q4 2015 transportation expense was
lower than Q3 2015 due to seasonal changes in levels of transportation facility maintenance, which are typically higher at the
beginning of the year. Q4 2015 transportation expense was higher than Q4 2014 due to the impact of prior period adjustments recorded
in the 2014 period.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Year-over-year, transportation expense
has increased as 2014 included only eleven months of expense due to the timing of our Germany acquisition. In addition, 2015 included
a prior period adjustment payment related to 2014.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Operating expense

| | · | Operating expenses for Germany are
billed monthly by the joint venture operator and primarily relate to tariffs charged for facility operations and gas processing.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Q4 2015 operating expense was higher
than both Q3 2015 and Q4 2014 due in equal parts to charges for prior period maintenance expenditures and the inclusion of a full
year gas processing tariff adjustment recorded in the current quarter.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Full year operating expense was
higher on a dollar basis versus 2014 due to the inclusion of only eleven months of expense in 2014 due to the timing of our Germany
acquisition and additional charges from the operator relating to 2014.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



22


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




General and administration

| | · | Q4 2015 general
and administration expenses were higher than both Q3 2015 and Q4 2014 due largely to increased allocations from our Corporate segment
in addition to higher staffing levels and office extension costs incurred to support our farm-in agreement.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Full year 2015
general and administration expense increased in 2015 versus 2014 due to the aforementioned increased allocations coupled with higher
staffing levels and expenditures relating to our farm-in agreement.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Current income taxes

| | · | Current income taxes in Germany apply to taxable income after
eligible deductions at a statutory tax rate of approximately 24.2%. As a function of tax pools in Germany, Vermilion does not presently
pay taxes in Germany.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



23


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




IRELAND BUSINESS UNIT



Overview

| | · | 18.5% non-operating interest in
the offshore Corrib gas field located approximately 83 km off the northwest coast of Ireland.
| | - | -----------------------------------------------------------------------------------------------------------------------------

| | · | Project comprises six offshore wells,
offshore and onshore sales and transportation pipeline segments as well as a natural gas processing facility.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Corrib is expected to produce approximately
58 mmcf/d (9,700 boe/d) net to Vermilion at peak production rates.
| | - | --------------------------------------------------------------------------------------------------------------



Operational and financial review



|                         |                            | Three Months Ended |         | % change |           |           | Year Ended |  | % change
|------------------------ | -------------------------- | ------------------ | ------- | -------- | --------- | --------- | ---------- |  | --------
|Ireland business unit    | Dec 31,                    | Sep 30,            | Dec 31, |          | Q4/15 vs. | Q4/15 vs. |            |  | Dec 31, 
|($M except as indicated) | 2015                       | 2015               | 2014    |          | Q3/15     | Q4/14     |            |  | 2015    
|                         | Sales                      | 57                 | -       | -        |           | 100%      | 100%       |  |         
|                         | Transportation expense     | (1,580)            | (1,766) | (1,720)  |           | (11%)     | (8%)       |  |         
|                         | Operating expense          | (15)               | -       | -        |           | 100%      | 100%       |  |         
|                         | General and administration | (714)              | (663)   | (579)    |           | 8%        | 23%        |  |         
|                         | Fund flows from operations | (2,252)            | (2,429) | (2,299)  |           | (7%)      | (2%)       |  |         
|Reference prices         |                            |                    |         |          |           |           |            |  |         
|                         | NBP ($/mmbtu)              | 7.41               | 8.40    | 9.52     |           | (12%)     | (22%)      |  |         
|                         | NBP (€/mmbtu)              | 5.07               | 5.77    | 6.71     |           | (12%)     | (24%)      |  |         
|Activity                 |                            |                    |         |          |           |           |            |  |         
|                         | Capital expenditures       | 12,493             | 20,694  | 20,932   |           | (40%)     | (40%)      |  |         



Activity review

| | · | On December 29, 2015, the operator,
Shell E&P Ireland Limited received consent from the office of Ireland’s Minister for Communication, Energy and Natural
Resources.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | On December 30, 2015, natural gas
began to flow from our Corrib gas project.
| | - | ----------------------------------------------------------------------------

| | · | Production volumes at Corrib are
expected to rise over a period of approximately six months to a peak rate of approximately 58 mmcf/d (9,700 boe/d) net to Vermilion.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------



Transportation expense

| | · | Transportation expense in Ireland
relates to payments under a ship or pay agreement related to the Corrib project.
| | - | ------------------------------------------------------------------------------------------------------------------

| | · | Q4 2015 transportation expense is
lower than Q3 2015 due to lower tariffs for the current gas year, which began in October of 2015, under the ship or pay agreement.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------



24


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




AUSTRALIA BUSINESS UNIT



Overview

| | · | Entered Australia in 2005.
| | - | --------------------------

| | · | Hold a 100% operated working interest
in the Wandoo field, located approximately 80 km offshore on the northwest shelf of Australia.
| | - | ------------------------------------------------------------------------------------------------------------------------------------

| | · | Production is operated from two
off-shore platforms, and originates from 21 producing well bores.
| | - | -------------------------------------------------------------------------------------------------

| | · | Wells that utilize horizontal legs
(ranging in length from 500 to 3,000 plus metres) are located 600 metres below the seabed in approximately 55 metres of water depth.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Contracted crude oil production
is priced with reference to Dated Brent.
| | - | ------------------------------------------------------------------------



Operational review



|                        |                             | Three Months Ended |         | % change |       |           | Year Ended | % change
|----------------------- | --------------------------- | ------------------ | ------- | -------- | ----- | --------- | ---------- | --------
|                        |                             | Dec 31,            | Sep 30, | Dec 31,  |       | Q4/15 vs. | Q4/15 vs.  |         
|Australia business unit | 2015                        | 2015               | 2014    |          | Q3/15 | Q4/14     |            |         
|Production              |                             |                    |         |          |       |           |            |         
|                        | Crude oil (bbls/d)          | 7,824              | 6,433   | 6,134    |       | 22%       | 28%        |         
|Inventory (mbbls)       |                             |                    |         |          |       |           |            |         
|                        | Opening crude oil inventory | 172                | 156     | 258      |       |           |            |         
|                        | Crude oil production        | 720                | 592     | 564      |       |           |            |         
|                        | Crude oil sales             | (817)              | (576)   | (785)    |       |           |            |         
|                        | Closing crude oil inventory | 75                 | 172     | 37       |       |           |            |         
|Activity                |                             |                    |         |          |       |           |            |         
|                        | Capital expenditures ($M)   | 40,852             | 7,966   | 11,616   |       | 413%      | 252%       |         
|                        | Gross wells drilled         | 1.00               | -       | -        |       |           |            |         
|                        | Net wells drilled           | 1.00               | -       | -        |       |           |            |         



Production

| | · | Q4 2015 quarterly production increased
22% quarter-over-quarter and 28% year-over-year, due to production additions from the horizontal sidetrack well drilled in the
quarter. The well was brought on production in mid-November and exhibited strong well performance, producing approximately 3,900
bbls/d through the end of Q4. Full year 2015 production decreased 2% versus the prior year.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Production volumes are managed within
corporate targets while meeting customer demands and the requirements of long-term supply agreements.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------

| | · | We continue to plan for long-term production levels of between
6,000 and 8,000 bbls/d.
| | - | --------------------------------------------------------------------------------------

Activity review

| | · | In Q4 2015, we completed a horizontal
sidetrack drilling program and placed the well on production.
| | - | ---------------------------------------------------------------------------------------------------

| | · | Additional 2015 activities included
ongoing facilities maintenance, enhancement, and refurbishment.
| | - | ---------------------------------------------------------------------------------------------------

| | · | We plan to drill a two-well sidetrack
program in Q2 2016.
| | - | ---------------------------------------------------------



25


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis










Financial review





|                                   | Three Months Ended |          | % change |  |           | Year Ended |  | % change
|---------------------------------- | ------------------ | -------- | -------- |  | --------- | ---------- |  | --------
|Australia business unit            | Dec 31,            | Sep 30,  | Dec 31,  |  | Q4/15 vs. | Q4/15 vs.  |  |         
|($M except as indicated)           | 2015               | 2015     | 2014     |  | Q3/15     | Q4/14      |  |         
|Sales                              | 47,952             | 39,325   | 70,971   |  | 22%       | (32%)      |  |         
|Operating expense                  | (13,941)           | (13,766) | (17,719) |  | 1%        | (21%)      |  |         
|General and administration         | (1,768)            | (1,391)  | (1,628)  |  | 27%       | 9%         |  |         
|PRRT                               | (1,054)            | (99)     | (13,568) |  | 965%      | (92%)      |  |         
|Corporate income taxes             | 1,201              | (2,720)  | (4,799)  |  | (144%)    | (125%)     |  |         
|Fund flows from operations         | 32,390             | 21,349   | 33,257   |  | 52%       | (3%)       |  |         
|Netbacks ($/boe)                   |                    |          |          |  |           |            |  |         
|Sales                              | 58.74              | 68.20    | 90.37    |  | (14%)     | (35%)      |  |         
|Operating expense                  | (17.08)            | (23.87)  | (22.56)  |  | (28%)     | (24%)      |  |         
|General and administration         | (2.17)             | (2.41)   | (2.07)   |  | (10%)     | 5%         |  |         
|PRRT                               | (1.29)             | (0.17)   | (17.28)  |  | 659%      | (93%)      |  |         
|Corporate income taxes             | 1.47               | (4.72)   | (6.11)   |  | (131%)    | (124%)     |  |         
|Fund flows from operations netback | 39.67              | 37.03    | 42.35    |  | 7%        | (6%)       |  |         
|Reference prices                   |                    |          |          |  |           |            |  |         
|Dated Brent (US $/bbl)             | 43.69              | 50.26    | 76.27    |  | (13%)     | (43%)      |  |         
|Dated Brent ($/bbl)                | 58.34              | 65.81    | 86.62    |  | (11%)     | (33%)      |  |         



Sales

| | · | Crude oil in Australia is priced with reference
to Dated Brent.
| | - | ---------------------------------------------------------------

| | · | Sales per boe decreased 14% in Q4 2015
versus Q3 2015, consistent with a decrease in the Dated Brent reference price. This decrease in sales per boe was more than offset
by an increase in sold volumes, resulting in a 22% increase in sales
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Year-over-year, sales on a dollar and on
a per boe basis decreased for the three months and year ended December 31, 2015, consistent with decreases in Dated Brent reference
price.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Royalties and transportation expense

| | · | Our production in Australia is not subject
to royalties or transportation expense as crude oil is sold directly at the Wandoo B platform.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------



Operating expense

| | · | Operating expense on a dollar basis remained
relatively consistent between Q3 and Q4 2015. The flat cost profile was achieved while crude volumes sold increased by 42% as a
result of strong production growth and a 97,000 bbl inventory draw, which led to increase recognition of deferred operating expense.
A continued focus on cost reduction initiatives resulted in reduced helicopter and vessel costs, contributing to a 28% decrease
in per unit costs.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Operating expense on a dollar basis decreased
for the three months and year ended December 31, 2015 versus 2014 due to cost-cutting initiatives, favourable foreign exchange
from a weaker Australian dollar during 2015, and inventory variances. On a per boe basis, operating expense decreased by 24% and
10% during the three months and year ended 2015 versus 2014 as a result of savings from cost reduction initiatives undertaken in
response to commodity price weakness – these initiatives included reduced vessel usage, lower diesel consumption, and reduced
staffing costs.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



General and administration

| | · | Fluctuations in general and administration
expense for Q4 2015 versus the comparable quarters is largely the result of the timing of expenditures. Full year 2015 general
and administration expense was relatively consistent with 2014.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



PRRT and corporate income taxes

| | · | In Australia, current
income taxes include both PRRT and corporate income taxes. PRRT is a profit based tax applied at a rate of 40% on sales less eligible
expenditures, including operating expenses and capital expenditures.  Corporate income taxes are applied at a rate of 30%
on taxable income after eligible deductions, which include PRRT.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Australia is not expected
to incur any corporate income tax or PRRT for 2016. This is subject to change in response to commodity price fluctuations, the
timing of capital expenditures and other eligible in-country adjustments.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Combined corporate income taxes and PRRT
for the three months and full year ended December 31, 2015 were lower than the comparable periods as a result of decreased revenues
and increased capital spending in the 2015 periods. Q4 2015 combined taxes were lower compared to Q3 2015 as increased sales were
offset by increased capital spending.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



26


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis


UNITED STATES BUSINESS UNIT



Overview

| | · | Entered the United States in September
2014.
| | - | --------------------------------------------

| | · | Interests include approximately 90,700
acres of land (98% undeveloped) in the Powder River Basin of northeastern Wyoming.
| | - | -------------------------------------------------------------------------------------------------------------------------

| | · | Tight oil development targeting the Turner
Sand at a depth of approximately 1,500 metres.
| | - | -----------------------------------------------------------------------------------------



Operational and financial review



|                                   | Three Months Ended | % change |         |           | Year Ended | % change
|---------------------------------- | ------------------ | -------- | ------- | --------- | ---------- | --------
|United States business unit        | Dec 31,            | Sep 30,  | Dec 31, | Q4/15 vs. | Q4/15 vs.  |         
|($M except as indicated)           | 2015               | 2015     | 2014    | Q3/15     | Q4/14      |         
|Production                         |                    |          |         |           |            |         
|Crude oil (bbls/d)                 | 420                | 226      | 195     | 86%       | 115%       |         
|NGLs (bbls/d)                      | 29                 | -        | -       | 100%      | 100%       |         
|Natural gas (mmcf/d)               | 0.20               | -        | -       | 100%      | 100%       |         
|Total (boe/d)                      | 483                | 226      | 195     | 114%      | 148%       |         
|Activity                           |                    |          |         |           |            |         
|Capital expenditures               | 5,643              | 3,226    | 460     | 75%       | 1,127%     |         
|Acquisitions                       | (21)               | 12,785   | -       |           |            |         
|Gross wells drilled                | 2.00               | -        | -       |           |            |         
|Net wells drilled                  | 2.00               | -        | -       |           |            |         
|Sales                              | 1,864              | 1,075    | 1,330   | 73%       | 40%        |         
|Royalties                          | (551)              | (309)    | (366)   | 78%       | 51%        |         
|Operating expense                  | (271)              | (146)    | (241)   | 86%       | 12%        |         
|General and administration         | (897)              | (896)    | (959)   | -         | (6%)       |         
|Fund flows from operations         | 145                | (276)    | (236)   | 153%      | 161%       |         
|Netbacks ($/boe)                   |                    |          |         |           |            |         
|Sales                              | 41.94              | 51.60    | 74.08   | (19%)     | (43%)      |         
|Royalties                          | (12.40)            | (14.83)  | (20.38) | (16%)     | (39%)      |         
|Operating expense                  | (6.11)             | (6.98)   | (13.44) | (12%)     | (55%)      |         
|General and administration         | (20.18)            | (43.03)  | (53.44) | (53%)     | (62%)      |         
|Fund flows from operations netback | 3.25               | (13.24)  | (13.18) | 125%      | 125%       |         
|Reference prices                   |                    |          |         |           |            |         
|WTI (US $/bbl)                     | 42.18              | 46.43    | 73.15   | (9%)      | (42%)      |         
|WTI ($/bbl)                        | 56.32              | 60.80    | 83.08   | (7%)      | (32%)      |         
|Henry Hub (US $/mmbtu)             | 2.27               | 2.77     | 4.00    | (18%)     | (43%)      |         
|Henry Hub ($/mmbtu)                | 3.03               | 3.62     | 4.54    | (16%)     | (33%)      |         



Activity review

| | · | Vermilion drilled two (2.0 net) wells in
the East Finn prospect area in Q4 2015 with well completions planned for Q1 2016.
| | - | --------------------------------------------------------------------------------------------------------------------------

| | · | In Q4 2015, we initiated sales of associated
natural gas from our East Finn wells, enabled by the completion of construction of a gas gathering system in the area.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | During the year, we consolidated our ownership
interest in the eastern Powder River Basin of Wyoming to a 100% working interest through the US $9.6 million acquisition of the
remaining 30% interest that was previously outstanding. The acquisition encompassed an estimated 0.9 mmboe of 2P reserves and an
additional 22,000 net acres.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | In 2016, we plan to drill one (1.0 net)
well and tie-in an additional two (2.0 net) wells drilled in Q4 2015.
| | - | -------------------------------------------------------------------------------------------------------------



27


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis


Sales

| | · | The price of crude oil in the United States
is directly linked to WTI, subject to market conditions in the United States.
| | - | -------------------------------------------------------------------------------------------------------------------------



Royalties

| | · | Our production in the United States is
subject to federal and private royalties, severance tax, and ad valorem tax.
| | - | -------------------------------------------------------------------------------------------------------------------

| | · | Royalties as a percentage of sales for
the three months and year ended December 31, 2015 of approximately 29.6% was slightly higher than Q3 2015 (28.7%) and the 2014
periods (27.5%) due to nominally higher royalty rates on the well we brought online in August 2015.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Operating expense

| | · | Operating expense decreased quarter-over-quarter
by 12% from $6.98/boe to $6.11/boe.
| | - | ------------------------------------------------------------------------------------



General and administration

| | · | General and administration expense was
relatively consistent quarter-over-quarter. Full year 2015 expenditures were higher than 2014 due to the timing of the formation
of the US business unit in Q4 2014.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



28


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




CORPORATE



Overview

| | · | Our Corporate segment
includes costs related to our global hedging program, financing expenses, and general and administration expenses, primarily incurred
in Canada and not directly related to the operations of our business units.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Financial review



|                                              | Three Months Ended |          |          | Year Ended
|--------------------------------------------- | ------------------ | -------- | -------- | ----------
|                                              | Dec 31,            | Sep 30,  | Dec 31,  |           
|($M)                                          | 2015               | 2015     | 2014     |           
|General and administration recovery (expense) | 3,356              | 2,359    | 1,224    |           
|Current income taxes                          | 313                | (480)    | (642)    |           
|Interest expense                              | (16,584)           | (15,420) | (12,943) |           
|Realized gain on derivatives                  | 21,164             | 10,854   | 22,816   |           
|Realized foreign exchange (loss) gain         | (252)              | 309      | (179)    |           
|Realized other income                         | 243                | 227      | 202      |           
|Fund flows from operations                    | 8,240              | (2,151)  | 10,478   |           



General and administration

| | · | The increase in the recovery of general
and administration costs for the three months and year ended December 31, 2015 versus the comparable periods in the prior year
is due to a decrease in staff-related expenditures, general cost saving initiatives in response to declining crude oil prices,
and increased salary allocations to the various business unit segments.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Current income taxes

| | · | Taxes in our corporate segment relate to
holding companies that pay current taxes in foreign jurisdictions.
| | - | -----------------------------------------------------------------------------------------------------------



Interest expense

| | · | The increase in interest expense in Q4
2015 versus all comparable periods is primarily due to increased average borrowings under our revolving credit facility. In addition,
interest expense for the three months and year ended December 31, 2015 versus the comparable periods in 2014 was higher due to
interest expense related to a finance lease recognized in Q1 2015.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Hedging

| | · | The nature of our operations results in
exposure to fluctuations in commodity prices, interest rates and foreign currency exchange rates. We monitor and, when appropriate,
use derivative financial instruments to manage our exposure to these fluctuations. All transactions of this nature entered into
are related to an underlying financial position or to future crude oil and natural gas production. We do not use derivative financial
instruments for speculative purposes. We have elected not to designate any of our derivative financial instruments as accounting
hedges and thus account for changes in fair value in net earnings (loss) at each reporting period. We have not obtained collateral
or other security to support our financial derivatives as we review the creditworthiness of our counterparties prior to entering
into derivative contracts.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Our hedging philosophy is to hedge solely
for the purposes of risk mitigation. Our approach is to hedge centrally to manage our global risk (typically with an outlook of
12 to 18 months) up to 50% of net of royalty volumes through a portfolio of forward collars, swaps, and physical fixed price arrangements.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | We believe that our hedging philosophy
and approach increases the stability of revenues, cash flows and future dividends while also assisting us in the execution of our
capital and development plans.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | The realized gain in Q4 2015 related primarily
to amounts received on our TTF, WTI, and Dated Brent derivatives, partially offset by payments made on our foreign exchange derivatives.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | A listing of derivative positions as at
December 31, 2015 is included in “Supplemental Table 2” of this MD&A.
| | - | -------------------------------------------------------------------------------------------------------------

29


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis


FINANCIAL PERFORMANCE REVIEW



|                                | Year Ended
|------------------------------- | ----------
|                                | Dec 31,   
|($M except per share)           | 2015      
|Total assets                    | 4,209,220 
|Long-term debt                  | 1,162,998 
|Petroleum and natural gas sales | 939,586   
|Net earnings (loss)             | (217,302) 
|Net earnings (loss) per share   |           
|Basic                           | (1.98)    
|Diluted                         | (1.98)    
|Cash dividends ($/share)        | 2.58      



|                                | Three Months Ended
|------------------------------- | ------------------
|                                | Dec 31,           
|($M except per share)           | 2015              
|Petroleum and natural gas sales | 234,319           
|Net earnings (loss)             | (142,080)         
|Net earnings (loss) per share   |                   
|Basic                           | (1.28)            
|Diluted                         | (1.28)            



The following table shows a reconciliation
of the change in net earnings (loss):



|($M)                                              | Q4/15 vs. Q3/15 | Q4/15 vs. Q4/14 | 2015 vs. 2014
|------------------------------------------------- | --------------- | --------------- | -------------
|Net earnings (loss) - Comparative period          | (83,310)        | 58,642          | 269,326      
|Changes in:                                       |                 |                 |              
|Fund flows from operations                        | 7,006           | (49,087)        | (288,698)    
|Equity based compensation                         | (4,760)         | (3,140)         | (7,430)      
|Unrealized gain or loss on derivative instruments | (4,627)         | 10,236          | 16,177       
|Unrealized foreign exchange gain or loss          | (21,315)        | (2,371)         | 26,386       
|Unrealized other expense                          | 75              | 511             | 484          
|Accretion                                         | (125)           | (137)           | 2            
|Depletion and depreciation                        | 41,031          | 9,369           | (33,064)     
|Deferred tax                                      | (87,432)        | (34,480)        | 74,138       
|Impairment                                        | 11,377          | (131,623)       | (274,623)    
|Net loss - Current period                         | (142,080)       | (142,080)       | (217,302)    



The fluctuations in net earnings (loss) from
quarter-to-quarter and from year-to-year are caused by changes in both cash and non-cash based income and charges. Cash based items
are reflected in fund flows from operations and include: sales, royalties, operating expenses, transportation, general and administration
expense, current tax expense, interest expense, realized gains and losses on derivative instruments, and realized foreign exchange
gains and losses. Non-cash items include: equity based compensation expense, unrealized gains and losses on derivative instruments,
unrealized foreign exchange gains and losses, accretion, depletion and depreciation expense, and deferred taxes. In addition, non-cash
items may also include amounts resulting from acquisitions or charges resulting from impairment or impairment recoveries.



Equity based compensation

Equity based compensation expense relates to
non-cash compensation expense attributable to long-term incentives granted to directors, officers, and employees under the Vermilion
Incentive Plan (“VIP”). The expense is recognized over the vesting period based on the grant date fair value of awards,
adjusted for the ultimate number of awards that actually vest as determined by the Company’s achievement of performance conditions.



Equity based compensation expense for the three
months and year ended December 31, 2015 was higher versus the comparable periods in 2014 due to a higher average number of awards
outstanding and higher grant value.



30


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis


Unrealized gain or loss on derivative instruments

Unrealized gain or loss on derivative instruments
arise as a result of changes in forecasted future commodity prices. As Vermilion uses derivative instruments to manage the commodity
price exposure of our future crude oil and natural gas production, we will normally recognize unrealized gains on derivative instruments
when forecasted future commodity prices decline and vice-versa.



For the year ended December 31, 2015, we recognized
an unrealized gain on derivative instruments of $43.5 million, relating primarily to our TTF, Dated Brent, and WTI swaps and collars.
As at December 31, 2015, we have a net derivative asset position of $68.3 million.



Unrealized foreign exchange gain or loss

As a result of Vermilion’s international
operations, Vermilion conducts business in currencies other than the Canadian dollar and has monetary assets and liabilities (including
cash, receivables, payables, derivative assets and liabilities, and intercompany loans) denominated in such currencies. Vermilion’s
exposure to foreign currencies includes the US dollar, the Euro and the Australian dollar.



Unrealized foreign exchange gains and losses
are the result of translating monetary assets and liabilities held in non-functional currencies to the respective functional currencies
of Vermilion and its subsidiaries. Unrealized foreign exchange primarily results from the translation of Euro denominated financial
assets and US dollar denominated financial liabilities. As such, an appreciation in the Euro against the Canadian dollar will result
in an unrealized foreign exchange gain while an appreciation in the US dollar against the Canadian dollar will result in an unrealized
foreign exchange loss (and vice-versa).



For the three months ended December 31, 2015,
the Canadian dollar weakened against the US dollar and remained relatively flat against the Euro, leading to an unrealized foreign
exchange loss of $6.4 million. During the year ended December 31, 2015, the Canadian dollar weakened significantly versus the US
dollar, but was offset by a strengthening in the Canadian dollar against the Euro resulting in an unrealized foreign exchange gain
of $8.8 million.



Accretion

Fluctuations in accretion expense are primarily
the result of changes in discount rates applicable to the balance of asset retirement obligations and additions resulting from
drilling and acquisitions.



Q4 2015 accretion expense was relatively consistent
with all comparative periods.



Depletion and depreciation

Fluctuations in depletion and depreciation expense
are primarily the result of changes in produced crude oil and natural gas volumes.



Depletion and depreciation on a per boe basis
for Q4 2015 of $18.88 was lower as compared to $28.28 in Q3 2015 and $24.42 for Q4 2014. This decrease is primarily due to increased
production natural gas properties in Drayton Valley, Canada which have a lower per boe depletion expense. For the year ended December
31, 2015, depletion and depreciation on a per boe basis of $22.98 was relatively consistent with $23.31 for the comparable period
in 2014 as increased production from natural gas properties in the Netherlands and light crude oil properties in Saskatchewan,
Canada, which both have relatively higher per boe depletion expense, was offset with higher production from natural gas properties
in Drayton Valley, Canada, which have a relatively lower per boe depletion expense.



Deferred tax

Deferred tax expense (recovery) arises primarily
as a result of changes in the accounting basis and tax basis for capital assets and asset retirement obligations and changes in
available tax losses. The increase in deferred tax recovery largely pertains to the tax effect on the $274.6 million impairment
charge recorded in 2015, increased accounting basis depletion primarily associated with higher global production, partially offset
by a valuation allowance recorded on deferred tax assets. The valuation allowance relates to certain non-capital losses for which
there is uncertainty as to the Company’s ability to fully utilize such losses when applying forecasted commodity prices in
effect as at December 31, 2015.



Impairment

For the three months and year ended December
31, 2015, Vermilion recorded impairment charges of $131.6 million and $274.6 million, respectively, related to the light crude
oil play in Saskatchewan, Canada ($267.9 million in 2015) and the shallow coal bed methane gas properties in Alberta, Canada ($6.7
million in 2015). These impairment charges were a result of declines in the price forecasts for crude oil and natural gas in Canada
which decreased the expected future cash flows from the CGU.



31


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis


TAXES



Corporate income tax rates

Vermilion pays corporate income taxes in France,
the Netherlands, and Australia. In addition, Vermilion pays PRRT in Australia. PRRT is a profit based tax applied at a rate of
40% on sales less operating expenses, capital expenditures, and other eligible expenditures. PRRT is deductible in the calculation
of taxable income in Australia.



Taxable income was subject to corporate income tax at the
following rates:



|Jurisdiction  | 2015          | 2014 
|------------- | ------------- | -----
|Canada (1)    | 25.5% / 27.0% | 25.5%
|France        | 34.4%         | 34.4%
|Netherlands   | 46.0%         | 46.0%
|Germany       | 24.2%         | 22.8%
|Ireland       | 25.0%         | 25.0%
|Australia     | 30.0%         | 30.0%
|United States | 35.0%         | 35.0%



| | (1) | Alberta
                                         corporate income tax rates increased from 10% to 12% effective July 1, 2015.
| | --- | -----------------------------------------------------------------------------------------------------------------------------



In 2012, the France government enacted a new
3% tax on dividend distributions made by entities subject to corporate income tax in France. The tax applies to any dividends paid
on or after April 17, 2012 and is not recovered by any tax treaties or deductible for French corporate income tax purposes. Vermilion
did not pay any dividends from its French entities in 2015.



Tax pools

As at December 31, 2015, we had the following tax pools:



|($M)          | Oil & Gas Assets |  | Tax Losses(4) | Other  | Total    
|------------- | ---------------- |  | ------------- | ------ | ---------
|Canada        | 1,176,574 (1)    |  | 341,445       | 2,448  | 1,520,467
|France        | 430,735 (2)      |  | 14,171        | -      | 444,906  
|Netherlands   | 54,104 (3)       |  | -             | -      | 54,104   
|Germany       | 112,038 (3)      |  | 43,360        | 18,977 | 174,375  
|Ireland       | 1,028,986 (4)    |  | 429,987       | -      | 1,458,973
|Australia     | 265,743 (1)      |  | -             | -      | 265,743  
|United States | 28,950 (1)       |  | 15,767        | -      | 44,717   
|Total         | 3,097,130 (1)    |  | 844,730       | 21,425 | 3,963,285



| |  | 
| |  | 

| | (1) | Deduction calculated using various
                                         declining balance rates
| | --- | ---------------------------------------------------------------------------------------------------

| | (2) | Deduction calculated using a combination
                                         of straight-line over the assets life and unit of production method
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | Deduction calculated using a unit
                                         of production method
| | --- | -----------------------------------------------------------------------------------------------

| | (4) | Deduction for current development
                                         expenditures and tax losses at 100% against taxable income
| | --- | -------------------------------------------------------------------------------------------------------------------------------------



32


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




FINANCIAL POSITION REVIEW



Balance sheet strategy

We believe that our balance sheet supports our
defined growth initiatives and our focus is on managing and maintaining a conservative balance sheet. To ensure that our balance
sheet continues to support our defined growth initiatives, we regularly review whether forecasted fund flows from operations is
sufficient to finance planned capital expenditures, dividends, and abandonment and reclamation expenditures. To the extent that
forecasted fund flows from operations is not expected to be sufficient to fulfill such expenditures, we will evaluate our ability
to finance any excess with debt (including borrowing using the unutilized capacity of our existing revolving credit facility) or
issue equity.



To ensure that we maintain a conservative balance
sheet, we monitor the ratio of net debt to fund flows from operations and typically strive to maintain an internally targeted ratio
of approximately 1.0 to 1.3 in a normalized commodity price environment. When prices trend higher, we may target a lower ratio
and conversely, in a lower commodity price environment, the debt ratio may prove to be higher. At times, we will use our balance
sheet to finance acquisitions and, in these situations, we are prepared to accept a higher ratio in the short term but will implement
a strategy to reduce the ratio to acceptable levels within a reasonable period of time, usually considered to be no more than 12
to 24 months. This plan could potentially include an increase in hedging activities, a reduction in capital expenditures, an issuance
of equity or the utilization of excess fund flows from operations to reduce outstanding indebtedness.



In the current low commodity price environment,
Vermilion’s net debt to fund flows ratio is expected to be higher than the longer term target ratio. During this period,
Vermilion will remain focused on maintaining a strong balance sheet by aligning capital expenditures within forecasted fund flows
from operations, which is continually monitored for revised forward price estimates, as well as by hedging additional European
natural gas volumes to maintain a diversified commodity portfolio.



Long-term debt

Our long-term debt consists of our revolving
credit facility and our senior unsecured notes. The applicable annual interest rates and the balances recognized on our balance
sheet are as follows:



|                           | Annual Interest Rate |         |  | As at
|-------------------------- | -------------------- | ------- |  | -----
|                           | Dec 31,              | Dec 31, |  |      
|($M)                       | 2015                 | 2014    |  |      
|Revolving credit facility  | 3.1%                 | 3.1%    |  |      
|Senior unsecured notes (1) | 6.5%                 | 6.5%    |  |      
|Long-term debt             | 3.7%                 | 3.8%    |  |      



| | (1) | The
                                         senior unsecured notes, which matured on February 10, 2016, are included in the current
                                         portion of long-term debt as at December 31, 2015.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Revolving Credit Facility

On January 30, 2015, Vermilion increased its
credit facility from $1.5 billion to $1.75 billion. During Q2 2015, we negotiated a further expansion and extension of our existing
revolving credit facilities from $1.75 billion to $2 billion with a maturity of May 2019. This allowed Vermilion to redeem the
senior unsecured notes, which matured on February 10, 2016, with a portion of the credit facility. The facility bears interest
at rates applicable to demand loans plus applicable margins. The following table outlines the terms of our revolving credit facility:



|                              | As at        
|----------------------------- | -------------
|                              | Dec 31,      
|                              | 2015         
|Total facility amount         | $2.0 billion 
|Amount drawn                  | $1.2 billion 
|Letters of credit outstanding | $25.2 million
|Facility maturity date        | 31-May-19    



33


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis


In addition, the revolving credit facility is subject to the
following covenants:



|                                                       |       | As at  
|------------------------------------------------------ | ----- | -------
|                                                       |       | Dec 31,
|Financial covenant                                     | Limit | 2015   
|Consolidated total debt to consolidated EBITDA         | 4.0   | 2.23   
|Consolidated total senior debt to consolidated EBITDA  | 3.0   | 1.83   
|Consolidated total senior debt to total capitalization | 50%   | 36%    



Our covenants include financial measures defined
within our revolving credit facility agreement that are not defined under GAAP. These financial measures are defined by our revolving
credit facility agreement as follows:



| | · | Consolidated total debt: Includes all amounts
classified as “Long-term debt”, “Current portion of long-term debt”, and “Finance lease obligation”
on our balance sheet.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Consolidated total senior debt: Defined
as consolidated total debt excluding unsecured and subordinated debt.
| | - | -------------------------------------------------------------------------------------------------------------

| | · | Consolidated EBITDA: Defined as consolidated
net earnings before interest, income taxes, depreciation, accretion and certain other non-cash items.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Total capitalization: Includes all amounts
on our balance sheet classified as “Shareholders’ equity” plus consolidated total debt as defined above.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------



Vermilion was in compliance with its financial
covenants for all periods presented.



Senior Unsecured Notes

As at December 31, 2015, we had outstanding
senior unsecured notes that were senior unsecured obligations and ranked pari passu with all our unsecured and unsubordinated indebtedness.
The following table outlines the terms of these notes:



|Total issued and outstanding amount | $225.0 million   
|----------------------------------- | -----------------
|Interest rate                       | 6.5% per annum   
|Issued date                         | February 10, 2011
|Maturity date                       | February 10, 2016



Vermilion redeemed the full principal outstanding
of the notes on February 10, 2016 using available capacity under the revolving credit facility. The notes were initially recognized
at fair value net of transaction costs and were subsequently measured at amortized cost using an effective interest rate of 7.1%.



Net debt

Net debt is reconciled to its most directly
comparable GAAP measure, long-term debt, as follows:



|                                                | As at    
|----------------------------------------------- | ---------
|                                                | Dec 31,  
|($M)                                            | 2015     
|Long-term debt                                  | 1,162,998
|Current liabilities (1)                         | 503,731  
|Current assets                                  | (284,778)
|Net debt                                        | 1,381,951
|                                                |          
|Ratio of net debt to fund flows from operations | 2.7      



| | (1) | Includes
                                         the current portion of long-term debt, which, as at December 31, 2015, represented the
                                         senior unsecured notes that matured on February 10, 2016.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Long term
debt, including the current portion, as at December 31, 2015,increased
to $1.39 billion from $1.24 billion as at December 31, 2014 as a result of draws on the revolving credit facility during the current
year to fund capital expenditures, particularly relating to development expenditures in Canada, France, Ireland, and Australia.
The increase in long-term debt resulted in an increase to net debt from $1.27 billion to $1.38 billion. As a result of this increase
to long-term debt coupled with weak commodity prices, the ratio of net debt to fund flows from operations increased from 1.6 times
as at December 31, 2014 to 2.7 times for the year ended December 31, 2015.



34


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis


Shareholders’ capital

During the year ended December 31, 2015, we
maintained monthly dividends at $0.215 per share and declared dividends which totalled $283.6 million.



The following table outlines our dividend payment
history:



|Date                              | Monthly dividend per unit or share
|--------------------------------- | ----------------------------------
|January 2003 to December 2007     | $0.170                            
|January 2008 to December 2012     | $0.190                            
|January 2013 to December 31, 2013 | $0.200                            
|January 2014 to Present           | $0.215                            



Our policy with respect to dividends is to be
conservative and maintain a low ratio of dividends to fund flows from operations. During low commodity price cycles, we will initially
maintain dividends and allow the ratio to rise. Should low commodity price cycles remain for an extended period of time, we will
evaluate the necessity of changing the level of dividends, taking into consideration capital development requirements, debt levels
and acquisition opportunities. As a further step to preserve our financial flexibility and conservatively exercise our access to
capital, we amended our existing DRIP to include a Premium DividendTM Component in February 2015. The Premium DividendTM
Component, when combined with our continuing Dividend Reinvestment Component, increases our access to the lowest cost sources of
equity capital available. While the Premium DividendTM results in a modest amount of equity issuance, we believe it represents
the most prudent approach to preserving near-term balance sheet strength. We view implementation of a Premium DividendTM as
a short-term measure to maintain our financial flexibility while we continue to lower our unit costs and await further clarity
on the direction of commodity prices. Both components of our program can be reduced or eliminated at the company’s discretion,
offering considerable flexibility. We will actively monitor our ongoing needs and manage our continued use of each component as
circumstances dictate.



Although we currently expect to be able to maintain
our current dividend, fund flows from operations may not be sufficient during this period to fund cash dividends, capital expenditures
and asset retirement obligations. We will evaluate our ability to finance any shortfalls with debt, issuances of equity or by reducing
some or all categories of expenditures to ensure that total expenditures do not exceed available funds.



The following table reconciles the change in
shareholders’ capital:



|Shareholders’ Capital                                                                 | Number of Shares ('000s) |         | Amount ($M)
|------------------------------------------------------------------------------------- | ------------------------ | ------- | -----------
|Balance as at December 31, 2014                                                       |                          | 107,303 |            
|Issuance of shares pursuant to the dividend reinvestment and Premium DividendTM plans |                          | 3,338   |            
|Vesting of equity based awards                                                        |                          | 1,158   |            
|Share-settled dividends on vested equity based awards                                 |                          | 135     |            
|Shares issued pursuant to the employee savings and bonus plans                        |                          | 57      |            
|Balance as at December 31, 2015                                                       |                          | 111,991 |            



As at December 31, 2015, there were approximately
1.7 million VIP awards outstanding. As at February 25, 2016, there were approximately 113.0 million common shares issued and outstanding.



CONTRACTUAL OBLIGATIONS AND COMMITMENTS



As at December 31, 2015, we had the following contractual obligations
and commitments:



|($M)                                                 | Less than 1 year | 1 - 3 years | 3 - 5 years | After 5 years | Total    
|---------------------------------------------------- | ---------------- | ----------- | ----------- | ------------- | ---------
|Long-term debt                                       | 226,625          | -           | 1,171,620   | -             | 1,398,245
|Operating lease obligations                          | 12,535           | 22,049      | 16,617      | 9,288         | 60,489   
|Ship or pay agreement relating to the Corrib project | 8,215            | 8,893       | 7,292       | 40,446        | 64,846   
|Purchase obligations                                 | 17,897           | 4,071       | 3,156       | -             | 25,124   
|Drilling and service agreements                      | 23,205           | 2,480       | -           | -             | 25,685   
|Total contractual obligations and commitments        | 288,477          | 37,493      | 1,198,685   | 49,734        | 1,574,389



ASSET RETIREMENT OBLIGATIONS



As at December 31, 2015, asset retirement obligations
were $305.6 million compared to $350.8 million as at December 31, 2014.



The decrease in asset retirement obligations
is largely attributable to an overall increase in the discount rates applied to the abandonment obligations.



35


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis




RISKS AND UNCERTAINTIES



Crude oil and natural gas exploration, production,
acquisition and marketing operations involve a number of risks and uncertainties including financial risks and uncertainties. These
include fluctuations in commodity prices, exchange rates and interest rates as well as uncertainties associated with reserve and
resource volumes, sales volumes and government regulatory and income tax regime changes. These and other related risks and uncertainties
are discussed in additional detail below.



Commodity prices

Our operational results and financial condition
is dependent on the prices received for crude oil and natural gas production. Crude oil and natural gas prices have fluctuated
significantly during recent years and are determined by supply and demand factors, including weather and general economic conditions
as well as conditions in other crude oil and natural gas producing regions.



Exchange rates

Much of our revenue stream is priced in U.S.
dollars and as such an increase in the strength of the Canadian dollar relative to the U.S. dollar may result in the receipt of
fewer Canadian dollars with respect to our production. In addition, we incur expenses and capital costs in U.S. dollars, Euros
and Australian dollars and accordingly, the Canadian dollar equivalent of these expenditures as reported in our financial results
is impacted by the prevailing exchange rates at the time the transaction occurs. We monitor risks associated with exchange rates
and, when appropriate, use derivative financial instruments to manage our exposure to these risks.



Production and sales volumes

The operation of crude oil and natural gas wells
and facilities involves a number of operating and natural hazards which may result in blowouts, environmental damage and other
unexpected or dangerous conditions resulting in damage to us and possible liability to third parties. We maintain liability insurance,
where available, in amounts consistent with industry standards. Business interruption insurance may also be purchased for selected
operations, to the extent that such insurance is commercially viable. We may become liable for damages arising from such events
against which we cannot insure or against which we may elect not to insure because of high premium costs or other reasons. Costs
incurred to repair such damage or pay such liabilities may materially impact our financial results.



Continuing production from a property, and to
some extent the marketing of produced volumes, is largely dependent upon the ability of the operator of the property. To the extent
the operator fails to perform these functions properly, revenue may be reduced. Payments from production generally flow through
the operator and there is a risk of delay and additional expense in receiving such revenues if the operator becomes insolvent.
Although satisfactory title reviews are generally conducted in accordance with industry standards, such reviews do not guarantee
or certify that a defect in the chain of title may not arise to defeat our claim to certain properties. Such circumstances could
negatively affect our financial results.



An increase in operating costs or a decline
in our production level could have an adverse effect on our financial results. The level of production may decline at rates greater
than anticipated due to unforeseen circumstances, many of which are beyond our control. A significant decline in production could
result in materially lower revenues.



Interest rates

An increase in interest rates could result in
a significant increase in the amount we pay to service debt.



Reserve volumes

Our reserve volumes and related reserve values
support the carrying value of our crude oil and natural gas assets on the consolidated balance sheets and provide the basis to
calculate the depletion of those assets. There are numerous uncertainties inherent in estimating quantities of reserves and future
net revenues to be derived therefrom, including many factors beyond our control. These include a number of assumptions relating
to factors such as initial production rates, production decline rates, ultimate recovery of reserves, timing and amount of capital
expenditures, marketability of production, future prices of crude oil, NGLs and natural gas, operating expenses, well abandonment
and salvage values, royalties and any government levies that may be imposed over the producing life of the reserves. These assumptions
were based on estimated prices in use at the date the evaluation was prepared, and many of these assumptions are subject to change
and are beyond our control. Actual production and income derived therefrom will vary from these evaluations, and such variations
could be material.



Asset retirement obligations

Our asset retirement obligations are based on
environmental regulations and estimates of future costs and the timing of expenditures. Changes in environmental regulations, the
estimated costs associated with reclamation activities and the related timing may impact our financial position and results of
operations.



36


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis


Government regulation and income tax regime

Our operations are governed by many levels of
government, including municipal, state, provincial and federal governments, in Canada, France, the Netherlands, Australia, Germany,
Ireland and the United States. We are subject to laws and regulations regarding environment, health and safety issues, lease interests,
taxes and royalties, among others. Failure to comply with the applicable laws can result in significant increases in costs, penalties
and even losses of operating licences. The regulatory process involved in each of the countries in which we operate is not uniform
and regulatory regimes vary as to complexity, timeliness of access to, and response from, regulatory bodies and other matters specific
to each jurisdiction. If regulatory approvals or permits are delayed or not obtained, there can also be delays or abandonment of
projects and decreases in production and increases in costs, potentially resulting in us being unable to fully execute our strategy.
Governments may also amend or create new legislation and regulatory bodies may also amend regulations or impose additional requirements
which could result in increased capital, operating and compliance costs.



There can be no assurance that income tax laws
and government incentive programs relating to the crude oil and natural gas industry in Canada and the foreign jurisdictions in
which we operate, will not be changed in a manner which adversely affects the results of our operations.



A change in the royalty regime resulting in
an increase in royalties would reduce our net earnings and could make future capital expenditures or our operations uneconomic
and could, in the event of a material increase in royalties, make it more difficult to service and repay outstanding debt. Any
material increase in royalties would also significantly reduce the value of the associated assets.



FINANCIAL RISK MANAGEMENT



To mitigate the aforementioned risks
whenever possible, we seek to hire personnel with experience in specific areas. In addition, we provide continued training and
development to staff to further develop their skills. When appropriate, we use third party consultants with relevant experience
to augment our internal capabilities with respect to certain risks.



We consider our commodity price risk
management program as a form of insurance that protects our cash flow and rate of return. The primary objective of the risk management
program is to support our dividends and our internal capital development program. The level of commodity price risk management
that occurs is highly dependent on the amount of debt that is carried. When debt levels are higher, we will be more active in protecting
our cash flow stream through our commodity price risk management strategy.



When executing our commodity price risk
management programs, we use derivative financial instruments encompassing over-the-counter financial structures as well as fixed/collar
structures to economically hedge a part of our physical crude oil and natural gas production. We have strict controls and guidelines
in relation to these activities and contract principally with counterparties that have investment grade credit ratings.



CRITICAL ACCOUNTING ESTIMATES



The preparation of financial statements in accordance
with IFRS requires management to make estimates, judgments and assumptions that affect reported assets, liabilities, revenues and
expenses, gains and losses, and disclosures of any possible contingencies. These estimates and assumptions are developed based
on the best available information which management believed to be reasonable at the time such estimates and assumptions were made.
As such, these assumptions are uncertain at the time estimates are made and could change, resulting in a material impact on our
consolidated financial statements or financial performance. Estimates are reviewed by management on an ongoing basis, and as a
result, certain estimates may change from period to period due to the availability of new information or changes in circumstances.
Additionally, as a result of the unique circumstances of each jurisdiction in which we operate, the critical accounting estimates
may affect one or more jurisdictions.



The following discussion outlines what management
believes to be the most critical accounting policies involving the use of estimates and assumptions.



Depletion and depreciation

We classify our assets into depletion units,
which are groups of assets or properties that are within a specific production area and have similar economic lives. The depletion
units represent the lowest level of disaggregation for which we accumulate costs for the purposes of calculating and recording
depletion and depreciation.



The net carrying value of each depletion unit
is depleted using the unit of production method by reference to the ratio of production in the period to the total proven and probable
reserves, taking into account the future development costs necessary to bring the applicable reserves into production. As a result,
depletion and depreciation charges are based on estimates of total proven and probable reserves that we expect to recover in the
future. The reserve estimates are reviewed annually by management or when material changes occur to the underlying assumptions.



Asset retirement obligations

Our estimate of asset retirement obligations
are based on past experience and current economic factors which management believes are reasonable. The estimates include assumptions
of environmental regulations, legal requirements, technological advances, inflation and the timing of expenditures, all of which
impact our measurement of the present value of the obligations. Due to these estimates, the actual cost of the obligation may change
from period to period due to new information being available. Several or all of these estimates are subject to change and such
changes could have a material impact on our financial position and net earnings.





37


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis


Assessment of impairments

Impairment tests are performed at the level
of the cash generating unit (“CGU”), which are determined based on management’s judgment of the lowest level
at which there are identifiable cash inflows which are largely independent of the cash inflows of other groups of assets or properties.
The factors used to determine CGUs vary by country due to the unique operating and geographic circumstances in each jurisdiction.
However, in general, we will assess the following factors in determining whether a group of assets generate largely independent
cash inflows: geographic proximity of the assets within a group to one another, geographic proximity of the group of assets to
other groups of assets, homogeneity of the production from the group of assets and the sharing of infrastructure used to process
or transport production.



The calculation of the recoverable amount of
CGUs is based on market factors as well as estimates of reserves and resources and future costs required to develop reserves and
resources. Our reserve and resource estimates and the related future cash flows are subject to measurement uncertainty, and the
impact on the consolidated financial statements in future periods could be material. Considerable judgment is used in determining
the recoverable amount of petroleum and natural gas assets as well as exploration and evaluation assets, including determining
the quantity of reserves and resources, the time horizon to develop and produce such reserves and resources, and the estimated
revenues and expenditures from such production.



Taxes

Tax interpretations, regulations and legislation
in the various jurisdictions in which we operate are subject to change. Such changes can affect the timing of the reversal of temporary
tax differences, the tax rates in effect when such differences reverse and our ability to use tax losses and other credits in the
future. The determination of deferred tax amounts recognized in the consolidated financial statements was based on management’s
assessment of the tax positions, including consideration of their technical merits and communications with tax authorities. The
effect of a change in income tax rates or legislation on tax assets and liabilities is recognized in net earnings in the period
in which the change is enacted.



OFF BALANCE SHEET ARRANGEMENTS



We have certain lease agreements that
are entered into in the normal course of operations, including operating leases for which no asset or liability value has been
assigned to the consolidated balance sheet as at December 31, 2015.

We have not entered into any guarantee
or off balance sheet arrangements that would materially impact our financial position or results of operations.



ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED



The impacts of the adoption of the following
pronouncements are currently being evaluated.



IFRS 9 “Financial Instruments”

On July 24, 2014, the IASB issued the
final element of its comprehensive response to the financial crisis by issuing IFRS 9 “Financial Instruments”. The
improvements introduced by IFRS 9 includes a model for classification and measurement, a single, forward-looking ‘expected
loss’ impairment model and a substantially-reformed approach to hedge accounting. Vermilion will adopt the standard for reporting
periods beginning January 1, 2018.



IFRS 15 “Revenue from Contracts with
Customers”

On May 28, 2014, the IASB issued IFRS
15 “Revenue from Contracts with Customers”, a new standard that specifies recognition requirements for revenue as well
as requiring entities to provide the users of financial statements with more informative and relevant disclosures. The standard
replaces IAS 11 “Construction Contracts” and IAS 18 “Revenue” as well as a number of revenue-related interpretations.
Vermilion will adopt the standard for reporting periods beginning January 1, 2018.



IFRS 16 “Leases”

On January 13, 2016, the IASB issued
IFRS 16, “Leases”, a new standard which will replace IAS 17, “Leases”.  Under IFRS 16, a single recognition
and measurement model will apply for lessees which will require recognition of assets and liabilities for most leases. Vermilion
will adopt the standard for reporting periods beginning January 1, 2019.



38


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis


HEALTH, SAFETY AND ENVIRONMENT



We are committed to ensuring we conduct our
activities in a manner that will protect the health and safety of our employees, contractors, and the public.  Our health,
safety, and environment (“HSE”) vision is to fully integrate health, safety, and environment into our business, where
our culture is recognized as a model by industry and stakeholders, resulting in a workplace free of incidents. Our mantra is HSE:
Everywhere. Everyday. Everyone.



We maintain health, safety and environmental
practices and procedures that comply with or exceed regulatory requirements and industry standards.  It is a condition of
employment that our personnel work safely and in accordance with established regulations and procedures.



In 2015, we remained committed to the principles
of the Responsible Canadian EnergyTM program set out by the Canadian Association of Petroleum Producers.  Responsible
Canadian EnergyTM is an association-wide performance reporting program to demonstrate progress in environmental, health, safety,
and social performance.



We uphold our commitment to keep our people
safe and to reduce impacts to land, water and air, as policies and procedures demonstrating leadership in these areas, were maintained
and further developed in 2015.  Examples of our accomplishments during the year included:



| | - | Maintained clear priorities around 5 key focus areas of HSE Culture, Communication and Knowledge
Management, Technical Safety Management, Incident Prevention and Operational Stewardship & Sustainability;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | - | Completed and published our Corporate Sustainability Report;
| | - | ------------------------------------------------------------

| | - | Reported our CO2e emissions to the Carbon Disclosure Project, achieving a 100% score
and a CDLI ranking;
| | - | --------------------------------------------------------------------------------------------------------

| | - | Emphasized improving energy efficiency, greenhouse gas emissions reduction and water efficiency
optimization;
| | - | -------------------------------------------------------------------------------------------------------------

| | - | Further refined and expanded our enterprise wide corporate risk register;
| | - | -------------------------------------------------------------------------

| | - | Developed a robust organizational wide HSE leadership training program to improve hazard identification
and risk reduction;
| | - | ---------------------------------------------------------------------------------------------------------------------------

| | - | Implemented a fair culture policy to ensure transparency in our processes;
| | - | --------------------------------------------------------------------------

| | - | Developed a robust risk mitigation program around our top fatal risk and energy type exposures;
| | - | -----------------------------------------------------------------------------------------------

| | - | Developed a robust hazard identification and risk mitigation program specific to environmentally
sensitive areas;
| | - | -----------------------------------------------------------------------------------------------------------------

| | - | Audited our HSE and asset integrity management systems;
| | - | -------------------------------------------------------

| | - | Updated various key Corporate HSE Standards such as our process hazards analysis;
| | - | ---------------------------------------------------------------------------------

| | - | Reduced long-term environmental liabilities through decommissioning, abandoning and reclaiming
well leases and facilities;
| | - | --------------------------------------------------------------------------------------------------------------------------

| | - | Performed continuous auditing, management inspections and workforce observations to identify potential
hazards and apply risk reduction measures;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------

| | - | Developed, communicated and measured against leading and lagging HSE key performance indicators;
| | - | ------------------------------------------------------------------------------------------------

| | - | Further enhanced of our competency and training programs;
| | - | ---------------------------------------------------------

| | - | Managed our waste products by reducing, recycling and recovering; and
| | - | ---------------------------------------------------------------------

| | - | Continued risk management efforts in addition to detailed emergency-response planning.
| | - | --------------------------------------------------------------------------------------



We are a member of several organizations concerned
with environment, health and safety, including numerous regional co-operatives and synergy groups.  In the area of stakeholder
relations, we work to build long-term relationships with environmental stakeholders and communities.



CORPORATE GOVERNANCE



We are committed to a high standard of corporate
governance practices, a dedication that begins at the Board level and extends throughout the Company. We believe good corporate
governance is in the best interest of our shareholders, and that successful companies are those that deliver growth and a competitive
return along with a commitment to the environment, to the communities where they operate and to their employees.



We comply with the objectives and guidelines
relating to corporate governance adopted by the Canadian Securities Administrators and the Toronto Stock Exchange. In addition,
the Board monitors and considers the implementation of corporate governance standards proposed by various regulatory and non-regulatory
authorities in Canada. A discussion of corporate governance policies will be provided in our Management Proxy Circular, which will
be filed on SEDAR (www.sedar.com) and mailed to all shareholders on April 6, 2016.



A summary of the significant differences between
the governance practices of the Company and those required of U.S. domestic companies under the New York Stock Exchange listing
standards can be found in the Governance section of the Company’s website athttp://www.vermilionenergy.com/about/governance.cfm.



39


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis


DISCLOSURE CONTROLS AND PROCEDURES



Our officers have established and maintained
disclosure controls and procedures and evaluated the effectiveness of these controls in conjunction with our filings.



As of December 31, 2015, we have evaluated the
effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, the Chief Executive
Officer and Chief Financial Officer have concluded and certified that our disclosure controls and procedures are effective.



INTERNAL CONTROL OVER FINANCIAL REPORTING



A company's internal control over financial
reporting is a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control
over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions of the company; (2) provide reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition
of the company's assets that could have a material effect on the financial statements.



The Chief Executive Officer and the Chief Financial
Officer of Vermilion have assessed the effectiveness of Vermilion’s internal control over financial reporting as defined
in Rule 13a-15 under the US Securities Exchange Act of 1934 and as defined in Canada by National Instrument 52-109, Certification
of Disclosure in Issuers’ Annual and Interim Filings. The assessment was based on the framework in Internal Control –
Integrated Framework (2013)issued by the Committee of Sponsoring Organizations of the Treadway Commission.The Chief
Executive Officer and the Chief Financial Officer of Vermilion have concluded that Vermilion’s internal control over financial
reporting was effective as of December 31, 2015. The effectiveness of Vermilion’s internal control over financial reporting
as of December 31, 2015 has been audited by Deloitte LLP, as reflected in their report included in the 2015 audited annual financial
statements filed with the US Securities and Exchange Commission. No changes were made to Vermilion’s internal control over
financial reporting during the year ended December 31, 2015, that have materially affected, or are reasonably likely to materially
affect, the internal controls over financial reporting.

40


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis


Supplemental Table 1: Netbacks



The following table includes financial statement
information on a per unit basis by business unit. Natural gas sales volumes have been converted on a basis of six thousand cubic
feet of natural gas to one barrel of oil equivalent.



|                                          | Three
    Months Ended December 31, 2015 |                 | Year
    Ended December 31, 2015 |  |                | Three
                                         Months
        Ended
        December
        31,
        2014 |         | Year
                                         Ended
        December
        31,
        2014
|----------------------------------------- | ---------------------------------------- | --------------- | -------------------------------- |  | -------------- | ------------------------------------------------------------------------------------------------------------- | ------- | ---------------------------------------------------------------------------------------------
|                                          | Oil
    & NGLs                           | Natural
    Gas | Total                            |  | Oil
    & NGLs | Natural
    Gas                                                                                               | Total   |                                                                                              
|                                          | $/bbl                                    | $/mcf           | $/boe                            |  | $/bbl          | $/mcf                                                                                                         | $/boe   |                                                                                              
|Canada                                    |                                          |                 |                                  |  |                |                                                                                                               |         |                                                                                              
|Sales                                     | 44.03                                    | 2.57            | 28.94                            |  | 49.73          | 2.78                                                                                                          | 34.32   |                                                                                              
|Royalties                                 | (5.15)                                   | (0.12)          | (2.80)                           |  | (5.26)         | (0.07)                                                                                                        | (3.01)  |                                                                                              
|Transportation                            | (2.04)                                   | (0.16)          | (1.48)                           |  | (2.38)         | (0.17)                                                                                                        | (1.75)  |                                                                                              
|Operating                                 | (10.97)                                  | (1.40)          | (9.62)                           |  | (10.47)        | (1.41)                                                                                                        | (9.54)  |                                                                                              
|Operating
    netback                     | 25.87                                    | 0.89            | 15.04                            |  | 31.62          | 1.13                                                                                                          | 20.02   |                                                                                              
|General
    and administration            |                                          |                 | (1.44)                           |  |                |                                                                                                               | (1.81)  |                                                                                              
|Fund
    flows from operations netback    |                                          |                 | 13.60                            |  |                |                                                                                                               | 18.21   |                                                                                              
|France                                    |                                          |                 |                                  |  |                |                                                                                                               |         |                                                                                              
|Sales                                     | 54.88                                    | 2.81            | 54.20                            |  | 63.31          | 2.52                                                                                                          | 62.67   |                                                                                              
|Royalties                                 | (6.23)                                   | (0.32)          | (6.15)                           |  | (6.06)         | (0.33)                                                                                                        | (6.00)  |                                                                                              
|Transportation                            | (3.72)                                   | -               | (3.65)                           |  | (3.47)         | -                                                                                                             | (3.42)  |                                                                                              
|Operating                                 | (13.55)                                  | (1.81)          | (13.50)                          |  | (11.34)        | (1.31)                                                                                                        | (11.30) |                                                                                              
|Operating
    netback                     | 31.38                                    | 0.68            | 30.90                            |  | 42.44          | 0.88                                                                                                          | 41.95   |                                                                                              
|General
    and administration            |                                          |                 | (4.18)                           |  |                |                                                                                                               | (4.50)  |                                                                                              
|Other
    income                          |                                          |                 | -                                |  |                |                                                                                                               | 7.08    |                                                                                              
|Current
    income taxes                  |                                          |                 | 3.87                             |  |                |                                                                                                               | (5.29)  |                                                                                              
|Fund
    flows from operations netback    |                                          |                 | 30.59                            |  |                |                                                                                                               | 39.24   |                                                                                              
|Netherlands                               |                                          |                 |                                  |  |                |                                                                                                               |         |                                                                                              
|Sales                                     | 48.30                                    | 7.09            | 42.61                            |  | 49.98          | 7.79                                                                                                          | 46.77   |                                                                                              
|Royalties                                 | -                                        | (0.04)          | (0.26)                           |  | -              | (0.19)                                                                                                        | (1.12)  |                                                                                              
|Operating                                 | -                                        | (1.21)          | (7.17)                           |  | -              | (1.39)                                                                                                        | (8.24)  |                                                                                              
|Operating
    netback                     | 48.30                                    | 5.84            | 35.18                            |  | 49.98          | 6.21                                                                                                          | 37.41   |                                                                                              
|General
    and administration            |                                          |                 | (0.93)                           |  |                |                                                                                                               | (1.51)  |                                                                                              
|Current
    income taxes                  |                                          |                 | (3.35)                           |  |                |                                                                                                               | (4.40)  |                                                                                              
|Fund
    flows from operations netback    |                                          |                 | 30.90                            |  |                |                                                                                                               | 31.50   |                                                                                              
|Germany                                   |                                          |                 |                                  |  |                |                                                                                                               |         |                                                                                              
|Sales                                     | -                                        | 6.61            | 39.68                            |  | -              | 7.18                                                                                                          | 43.10   |                                                                                              
|Royalties                                 | -                                        | (0.78)          | (4.70)                           |  | -              | (1.12)                                                                                                        | (6.75)  |                                                                                              
|Transportation                            | -                                        | (0.34)          | (2.05)                           |  | -              | (0.57)                                                                                                        | (3.41)  |                                                                                              
|Operating                                 | -                                        | (3.22)          | (19.31)                          |  | -              | (1.90)                                                                                                        | (11.41) |                                                                                              
|Operating
    netback                     | -                                        | 2.27            | 13.62                            |  | -              | 3.59                                                                                                          | 21.53   |                                                                                              
|General
    and administration            |                                          |                 | (12.22)                          |  |                |                                                                                                               | (7.69)  |                                                                                              
|Current
    income taxes                  |                                          |                 | -                                |  |                |                                                                                                               | -       |                                                                                              
|Fund
    flows from operations netback    |                                          |                 | 1.40                             |  |                |                                                                                                               | 13.84   |                                                                                              
|Australia                                 |                                          |                 |                                  |  |                |                                                                                                               |         |                                                                                              
|Sales                                     | 58.74                                    | -               | 58.74                            |  | 70.22          | -                                                                                                             | 70.22   |                                                                                              
|Operating                                 | (17.08)                                  | -               | (17.08)                          |  | (22.29)        | -                                                                                                             | (22.29) |                                                                                              
|PRRT
    (1)                              | (1.29)                                   | -               | (1.29)                           |  | (2.97)         | -                                                                                                             | (2.97)  |                                                                                              
|Operating
    netback                     | 40.37                                    | -               | 40.37                            |  | 44.96          | -                                                                                                             | 44.96   |                                                                                              
|General
    and administration            |                                          |                 | (2.17)                           |  |                |                                                                                                               | (2.48)  |                                                                                              
|Corporate
    income taxes                |                                          |                 | 1.47                             |  |                |                                                                                                               | (3.12)  |                                                                                              
|Fund
    flows from operations netback    |                                          |                 | 39.67                            |  |                |                                                                                                               | 39.36   |                                                                                              
|United
    States                         |                                          |                 |                                  |  |                |                                                                                                               |         |                                                                                              
|Sales                                     | 44.83                                    | 0.52            | 41.94                            |  | 49.10          | 0.52                                                                                                          | 47.53   |                                                                                              
|Royalties                                 | (13.19)                                  | (0.30)          | (12.40)                          |  | (14.36)        | (0.30)                                                                                                        | (13.93) |                                                                                              
|Operating                                 | (6.56)                                   | -               | (6.11)                           |  | (8.52)         | -                                                                                                             | (8.23)  |                                                                                              
|Operating
    netback                     | 25.08                                    | 0.22            | 23.43                            |  | 26.22          | 0.22                                                                                                          | 25.37   |                                                                                              
|General
    and administration            |                                          |                 | (20.18)                          |  |                |                                                                                                               | (42.51) |                                                                                              
|Fund
    flows from operations netback    |                                          |                 | 3.25                             |  |                |                                                                                                               | (17.14) |                                                                                              
|Total
    Company                         |                                          |                 |                                  |  |                |                                                                                                               |         |                                                                                              
|Sales                                     | 51.64                                    | 4.55            | 41.04                            |  | 58.80          | 4.98                                                                                                          | 47.07   |                                                                                              
|Realized
    hedging gain                 | 2.69                                     | 0.84            | 3.71                             |  | 1.32           | 0.53                                                                                                          | 2.07    |                                                                                              
|Royalties                                 | (4.32)                                   | (0.16)          | (2.85)                           |  | (4.58)         | (0.24)                                                                                                        | (3.30)  |                                                                                              
|Transportation                            | (2.09)                                   | (0.23)          | (1.78)                           |  | (2.30)         | (0.30)                                                                                                        | (2.09)  |                                                                                              
|Operating                                 | (13.35)                                  | (1.52)          | (11.50)                          |  | (13.06)        | (1.46)                                                                                                        | (11.32) |                                                                                              
|PRRT
    (1)                              | (0.33)                                   | -               | (0.18)                           |  | (0.58)         | -                                                                                                             | (0.34)  |                                                                                              
|Operating
    netback                     | 34.24                                    | 3.48            | 28.44                            |  | 39.60          | 3.51                                                                                                          | 32.09   |                                                                                              
|General
    and administration            |                                          |                 | (2.18)                           |  |                |                                                                                                               | (2.68)  |                                                                                              
|Interest
    expense                      |                                          |                 | (2.90)                           |  |                |                                                                                                               | (3.00)  |                                                                                              
|Realized
    foreign exchange (loss) gain |                                          |                 | (0.04)                           |  |                |                                                                                                               | 0.03    |                                                                                              
|Other
    income                          |                                          |                 | 0.04                             |  |                |                                                                                                               | 1.64    |                                                                                              
|Corporate
    income taxes(1)             |                                          |                 | 0.55                             |  |                |                                                                                                               | (2.22)  |                                                                                              
|Fund
    flows from operations netback    |                                          |                 | 23.91                            |  |                |                                                                                                               | 25.86   |                                                                                              





| | (1) | Vermilion
                                         considers Australian PRRT to be an operating item and, accordingly, has included PRRT
                                         in the calculation of operating netbacks. Current income taxes presented above excludes
                                         PRRT.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



41


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis


Supplemental Table 2: Hedges



The following tables outline Vermilion’s outstanding risk management
positions as at December 31, 2015:



|                                      | Note | Volume        | Strike Price(s)        
|------------------------------------- | ---- | ------------- | -----------------------
|Crude Oil                             |      |               |                        
|WTI - Collar                          |      |               |                        
|July 2015 - March 2016                | 1    | 250 bbl/d     | 75.00 - 83.45 CAD $    
|July 2015 - June 2016                 | 2    | 500 bbl/d     | 75.50 - 85.08 CAD $    
|Dated Brent - Collar                  |      |               |                        
|July 2015 - June 2016                 | 3    | 1,000 bbl/d   | 80.50 - 93.49 CAD $    
|July 2015 - June 2016                 | 4    | 500 bbl/d     | 64.50 - 75.48 US $     
|October 2015 - June 2016              | 5    | 250 bbl/d     | 82.00 - 94.55 CAD $    
|January 2016 - June 2016              | 1    | 250 bbl/d     | 84.00 - 93.70 CAD $    
|                                      |      |               |                        
|North American Natural Gas            |      |               |                        
|AECO - Collar                         |      |               |                        
|November 2015 - March 2016            |      | 2,500 GJ/d    | 2.50 - 3.76 CAD $      
|November 2015 - October 2016          |      | 10,000 GJ/d   | 2.56 - 3.23 CAD $      
|January 2016 - December 2016          |      | 10,000 GJ/d   | 2.53 - 3.29 CAD $      
|April 2016 - October 2016             |      | 5,000 GJ/d    | 2.30 - 2.80 CAD $      
|AECO Basis - Fixed Price Differential |      |               |                        
|November 2015 - March 2016            |      | 2,500 mmbtu/d | Nymex HH less 0.47 US $
|Nymex HH - Collar                     |      |               |                        
|November 2015 - March 2016            | 6    | 5,000 mmbtu/d | 3.25 - 3.86 US $       



| | (1) | The contracted volumes increase to 500 boe/d for any monthly settlement periods above the contracted
ceiling price and are settled on the monthly average price (monthly average US$/bbl multiplied by the Bank of Canada monthly average
noon day rate).
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | The contracted volumes increase to 1,250 boe/d for any monthly settlement periods above the contracted
ceiling price and are settled on the monthly average price (monthly average US$/bbl multiplied by the Bank of Canada monthly average
noon day rate).
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | The contracted volumes increase to 2,500 boe/d for any monthly settlement periods above the contracted
ceiling price and are settled on the monthly average price (monthly average US$/bbl multiplied by the Bank of Canada monthly average
noon day rate).
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | The contracted volumes increase to 1,000 boe/d for any monthly settlement periods above the contracted
ceiling price.
| | --- | ---------------------------------------------------------------------------------------------------------------------

| | (5) | The contracted volumes increase to 750 boe/d for any monthly settlement periods above the contracted
ceiling price and are settled on the monthly average price (monthly average US$/bbl multiplied by the Bank of Canada monthly average
noon day rate).
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (6) | The contracted volumes increase to 10,000 mmbtu/d for any monthly settlement periods above the
contracted ceiling price.
| | --- | ------------------------------------------------------------------------------------------------------------------------



42


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis


Supplemental Table 2: Hedges (Continued)



|                                | Note | Volume                 | Strike Price(s)  
|------------------------------- | ---- | ---------------------- | -----------------
|European Natural Gas            |      |                        |                  
|NBP - Call                      |      |                        |                  
|October 2016 - March 2017       |      | 2,638 GJ/d             | 4.64 GBP £       
|NBP - Collar                    |      |                        |                  
|April 2016 - March 2017         |      | 2,638 GJ/d             | 3.79 - 4.53 GBP £
|January 2017 - December 2017    |      | 2,638 GJ/d             | 3.22 - 3.75 GBP £
|January 2018 - December 2018    |      | 2,638 GJ/d             | 2.99 - 3.63 GBP £
|NBP - Put                       |      |                        |                  
|April 2016 - September 2016     |      | 2,638 GJ/d             | 3.79 GBP £       
|NBP - Swap                      |      |                        |                  
|July 2015 - March 2016          |      | 2,592 GJ/d             | 6.42 EUR €       
|October 2015 - March 2016       |      | 10,368 GJ/d            | 6.54 EUR €       
|January 2016 - June 2016        |      | 5,184 GJ/d             | 6.24 EUR €       
|January 2016 - June 2016        |      | 2,592 GJ/d             | 6.82 US $        
|July 2016 - March 2017          |      | 2,592 GJ/d             | 5.43 EUR €       
|January 2017 - December 2017    | 1    | 2,638 GJ/d             | 4.00 GBP £       
|January 2018 - December 2018    | 2    | 2,638 GJ/d             | 3.83 GBP £       
|TTF - Call                      |      |                        |                  
|October 2016 - March 2017       |      | 2,592 GJ/d             | 6.03 EUR €       
|TTF - Collar                    |      |                        |                  
|January 2016 - December 2016    | 3    | 2,592 GJ/d             | 5.76 - 6.50 EUR €
|April 2016 - December 2016      | 4    | 12,960 GJ/d            | 5.58 - 6.21 EUR €
|April 2016 - March 2017         | 5    | 5,184 GJ/d             | 5.28 - 6.35 EUR €
|July 2016 - December 2016       |      | 2,592 GJ/d             | 5.00 - 5.63 EUR €
|July 2016 - March 2017          | 3    | 2,592 GJ/d             | 5.07 - 6.56 EUR €
|July 2016 - March 2018          | 3    | 2,592 GJ/d             | 5.32 - 6.54 EUR €
|October 2016 - December 2017    |      | 2,592 GJ/d             | 5.00 - 5.89 EUR €
|January 2017 - December 2017    | 6    | 7,776 GJ/d             | 5.00 - 6.15 EUR €
|January 2018 - December 2018    |      | 5,184 GJ/d             | 4.17 - 5.03 EUR €
|TTF - Put                       |      |                        |                  
|April 2016 - September 2016     |      | 2,592 GJ/d             | 5.21 EUR €       
|TTF - Swap                      |      |                        |                  
|January 2015 - March 2016       |      | 5,184 GJ/d             | 6.40 EUR €       
|January 2015 - June 2016        |      | 2,592 GJ/d             | 6.07 EUR €       
|February 2015 - March 2016      |      | 5,184 GJ/d             | 6.24 EUR €       
|April 2015 - March 2016         |      | 5,832 GJ/d             | 6.18 EUR €       
|October 2015 - March 2016       |      | 2,592 GJ/d             | 6.64 EUR €       
|January 2016 - June 2016        |      | 5,184 GJ/d             | 5.94 EUR €       
|April 2016 - December 2016      |      | 2,592 GJ/d             | 5.91 EUR €       
|July 2016 - June 2018           |      | 2,700 GJ/d             | 5.58 EUR €       
|October 2016 - December 2016    |      | 2,592 GJ/d             | 5.45 EUR €       
|January 2017 - December 2017    | 7    | 2,592 GJ/d             | 5.04 EUR €       
|                                |      |                        |                  
|Electricity                     |      |                        |                  
|AESO - Swap                     |      |                        |                  
|January 2016 - December 2016    |      | 93.6 MWh/d             | 38.58 CAD $      
|                                |      |                        |                  
|Interest Rate                   |      |                        |                  
|CDOR to fixed - Swap            |      |                        |                  
|September 2015 - September 2019 |      | 100,000,000 CAD $/year | 1.00 %           
|October 2015 - October 2019     |      | 100,000,000 CAD $/year | 1.10 %           



| | (1) | On the last business day of each month, the counterparty has the option to increase the contracted
volumes by an additional 2,638 GJ/d at the contracted price, for the following month.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | On the last business day of each month, the counterparty has the option to increase the contracted
volumes to 7,913 GJ/d at the contracted price, for the following month.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | The contracted volumes increase to 5,184 GJ/d for any monthly settlement periods above the contracted
ceiling price.
| | --- | --------------------------------------------------------------------------------------------------------------------

| | (4) | The contracted volumes increase to 15,552 GJ/d for any monthly settlement periods above the contracted
ceiling price.
| | --- | ---------------------------------------------------------------------------------------------------------------------

| | (5) | The contracted volumes increase to 10,368 GJ/d for any monthly settlement periods above the contracted
ceiling price.
| | --- | ---------------------------------------------------------------------------------------------------------------------

| | (6) | The contracted volumes increase to 18,144 GJ/d for any monthly settlement periods above the contracted
ceiling price.
| | --- | ---------------------------------------------------------------------------------------------------------------------

| | (7) | On the last business day of each month, the counterparty has the option to increase the contracted
volumes by an additional 5,184 GJ/d at the contracted price, for the following month.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



43


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis


Supplemental Table 3: Capital Expenditures



|                                            | Three Months Ended |         |         | Year Ended
|------------------------------------------- | ------------------ | ------- | ------- | ----------
|By classification                           | Dec 31,            | Sep 30, | Dec 31, |           
|($M)                                        | 2015               | 2015    | 2014    |           
|Drilling and development                    | 128,996            | 93,381  | 151,395 |           
|Exploration and evaluation                  | -                  | -       | 14,848  |           
|Capital expenditures                        | 128,996            | 93,381  | 166,243 |           
|Property acquisition                        | 6,227              | 22,155  | 1,652   |           
|Corporate acquisition                       | -                  | -       | -       |           
|Acquisitions                                | 6,227              | 22,155  | 1,652   |           
|                                            |                    |         |         |           
|                                            | Three Months Ended |         |         | Year Ended
|By category                                 | Dec 31,            | Sep 30, | Dec 31, |           
|($M)                                        | 2015               | 2015    | 2014    |           
|Land                                        | 819                | 763     | 1,457   |           
|Seismic                                     | 4,217              | 810     | 7,598   |           
|Drilling and completion                     | 58,327             | 39,712  | 69,691  |           
|Production equipment and facilities         | 55,662             | 44,589  | 77,272  |           
|Recompletions                               | 6,338              | 3,948   | 7,696   |           
|Other                                       | 3,633              | 3,559   | 2,529   |           
|Capital expenditures                        | 128,996            | 93,381  | 166,243 |           
|Acquisitions                                | 6,227              | 22,155  | 1,652   |           
|Total capital expenditures and acquisitions | 135,223            | 115,536 | 167,895 |           
|                                            |                    |         |         |           
|                                            | Three Months Ended |         |         | Year Ended
|By country                                  | Dec 31,            | Sep 30, | Dec 31, |           
|($M)                                        | 2015               | 2015    | 2014    |           
|Canada                                      | 33,723             | 45,286  | 87,113  |           
|France                                      | 24,164             | 17,511  | 37,189  |           
|Netherlands                                 | 18,810             | 5,297   | 10,022  |           
|Germany                                     | (441)              | 1,605   | 563     |           
|Ireland                                     | 12,493             | 20,694  | 20,932  |           
|Australia                                   | 40,852             | 7,966   | 11,616  |           
|United States                               | 5,622              | 16,011  | 460     |           
|Corporate                                   | -                  | 1,166   | -       |           
|Total capital expenditures and acquisitions | 135,223            | 115,536 | 167,895 |           

44


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis


Supplemental Table 4: Production



|                          |        | Q4/15  | Q3/15  | Q2/15  | Q1/15  | Q4/14  | Q3/14  | Q2/14  | Q1/14  | Q4/13  | Q3/13  | Q2/13  | Q1/13
|------------------------- | ------ | ------ | ------ | ------ | ------ | ------ | ------ | ------ | ------ | ------ | ------ | ------ | -----
|Canada                    |        |        |        |        |        |        |        |        |        |        |        |       
|Crude oil (bbls/d)        | 7,964  | 9,195  | 10,182 | 10,893 | 11,384 | 11,469 | 12,676 | 9,437  | 8,719  | 7,969  | 8,885  | 7,966 
|NGLs (bbls/d)             | 5,159  | 4,513  | 3,755  | 2,976  | 2,741  | 2,291  | 2,796  | 2,071  | 1,699  | 1,897  | 1,725  | 1,335 
|Natural gas (mmcf/d)      | 87.90  | 71.94  | 64.66  | 61.78  | 58.36  | 57.07  | 57.59  | 49.53  | 41.43  | 43.40  | 43.69  | 41.04 
|Total (boe/d)             | 27,773 | 25,698 | 24,713 | 24,165 | 23,851 | 23,272 | 25,070 | 19,763 | 17,322 | 17,099 | 17,892 | 16,140
|% of consolidated         | 45%    | 47%    | 48%    | 48%    | 49%    | 47%    | 49%    | 42%    | 43%    | 41%    | 42%    | 41%   
|France                    |        |        |        |        |        |        |        |        |        |        |        |       
|Crude oil (bbls/d)        | 12,537 | 12,310 | 12,746 | 11,463 | 11,133 | 11,111 | 11,025 | 10,771 | 11,131 | 11,625 | 10,390 | 10,330
|Natural gas (mmcf/d)      | 1.36   | 1.47   | 1.03   | -      | -      | -      | -      | -      | -      | 5.23   | 4.19   | 4.21  
|Total (boe/d)             | 12,763 | 12,555 | 12,917 | 11,463 | 11,133 | 11,111 | 11,025 | 10,771 | 11,131 | 12,496 | 11,088 | 11,032
|% of consolidated         | 21%    | 22%    | 25%    | 23%    | 22%    | 22%    | 21%    | 23%    | 27%    | 30%    | 26%    | 29%   
|Netherlands               |        |        |        |        |        |        |        |        |        |        |        |       
|NGLs (bbls/d)             | 110    | 109    | 112    | 63     | 81     | 63     | 96     | 69     | 62     | 48     | 50     | 96    
|Natural gas (mmcf/d)      | 56.34  | 53.56  | 32.43  | 36.41  | 31.35  | 38.07  | 40.35  | 43.15  | 37.53  | 28.78  | 38.52  | 36.91 
|Total (boe/d)             | 9,500  | 9,035  | 5,517  | 6,132  | 5,306  | 6,407  | 6,822  | 7,260  | 6,318  | 4,845  | 6,470  | 6,248 
|% of consolidated         | 16%    | 16%    | 11%    | 12%    | 11%    | 13%    | 13%    | 16%    | 15%    | 12%    | 15%    | 16%   
|Germany                   |        |        |        |        |        |        |        |        |        |        |        |       
|Natural gas (mmcf/d)      | 16.17  | 14.00  | 16.18  | 16.80  | 17.71  | 15.38  | 16.13  | 10.64  | -      | -      | -      | -     
|Total (boe/d)             | 2,695  | 2,333  | 2,696  | 2,801  | 2,952  | 2,563  | 2,689  | 1,773  | -      | -      | -      | -     
|% of consolidated         | 4%     | 4%     | 5%     | 6%     | 6%     | 5%     | 5%     | 4%     | -      | -      | -      | -     
|Ireland                   |        |        |        |        |        |        |        |        |        |        |        |       
|Natural gas (mmcf/d)      | 0.12   | -      | -      | -      | -      | -      | -      | -      | -      | -      | -      | -     
|Total (boe/d)             | 20     | -      | -      | -      | -      | -      | -      | -      | -      | -      | -      | -     
|% of consolidated         | -      | -      | -      | -      | -      | -      | -      | -      | -      | -      | -      | -     
|Australia                 |        |        |        |        |        |        |        |        |        |        |        |       
|Crude oil (bbls/d)        | 7,824  | 6,433  | 5,865  | 5,672  | 6,134  | 6,567  | 6,483  | 7,110  | 6,189  | 7,070  | 7,363  | 5,287 
|% of consolidated         | 13%    | 11%    | 11%    | 11%    | 12%    | 13%    | 12%    | 15%    | 15%    | 17%    | 17%    | 14%   
|United States             |        |        |        |        |        |        |        |        |        |        |        |       
|Crude oil (bbls/d)        | 420    | 226    | 123    | 153    | 195    | -      | -      | -      | -      | -      | -      | -     
|NGLs (bbls/d)             | 29     | -      | -      | -      | -      | -      | -      | -      | -      | -      | -      | -     
|Natural gas (mmcf/d)      | 0.20   | -      | -      | -      | -      | -      | -      | -      | -      | -      | -      | -     
|Total (boe/d)             | 483    | 226    | 123    | 153    | 195    | -      | -      | -      | -      | -      | -      | -     
|% of consolidated         | 1%     | -      | -      | -      | -      | -      | -      | -      | -      | -      | -      | -     
|Consolidated              |        |        |        |        |        |        |        |        |        |        |        |       
|Crude oil & NGLs (bbls/d) | 34,043 | 32,786 | 32,783 | 31,220 | 31,668 | 31,501 | 33,076 | 29,458 | 27,800 | 28,609 | 28,413 | 25,014
|% of consolidated         | 56%    | 58%    | 63%    | 62%    | 64%    | 63%    | 63%    | 63%    | 68%    | 69%    | 66%    | 65%   
|Natural gas (mmcf/d)      | 162.09 | 140.97 | 114.29 | 115.00 | 107.42 | 110.52 | 114.08 | 103.32 | 78.96  | 77.41  | 86.40  | 82.16 
|% of consolidated         | 44%    | 42%    | 37%    | 38%    | 36%    | 37%    | 37%    | 37%    | 32%    | 31%    | 34%    | 35%   
|Total (boe/d)             | 61,058 | 56,280 | 51,831 | 50,386 | 49,571 | 49,920 | 52,089 | 46,677 | 40,960 | 41,510 | 42,813 | 38,707



45


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis


Supplemental Table 4: Production (Continued)



|                          |        | 2015   | 2014   | 2013   | 2012   | 2011   | 2010
|------------------------- | ------ | ------ | ------ | ------ | ------ | ------ | ----
|Canada                    |        |        |        |        |        |       
|Crude oil (bbls/d)        | 9,550  | 11,248 | 8,387  | 7,659  | 4,701  | 2,778 
|NGLs (bbls/d)             | 4,108  | 2,476  | 1,666  | 1,232  | 1,297  | 1,427 
|Natural gas (mmcf/d)      | 71.65  | 55.67  | 42.39  | 37.50  | 43.38  | 43.91 
|Total (boe/d)             | 25,598 | 23,001 | 17,117 | 15,142 | 13,227 | 11,524
|% of consolidated         | 46%    | 47%    | 41%    | 40%    | 38%    | 36%   
|France                    |        |        |        |        |        |       
|Crude oil (bbls/d)        | 12,267 | 11,011 | 10,873 | 9,952  | 8,110  | 8,347 
|Natural gas (mmcf/d)      | 0.97   | -      | 3.40   | 3.59   | 0.95   | 0.92  
|Total (boe/d)             | 12,429 | 11,011 | 11,440 | 10,550 | 8,269  | 8,501 
|% of consolidated         | 23%    | 22%    | 28%    | 28%    | 23%    | 26%   
|Netherlands               |        |        |        |        |        |       
|NGLs (bbls/d)             | 99     | 77     | 64     | 67     | 58     | 35    
|Natural gas (mmcf/d)      | 44.76  | 38.20  | 35.42  | 34.11  | 32.88  | 28.31 
|Total (boe/d)             | 7,559  | 6,443  | 5,967  | 5,751  | 5,538  | 4,753 
|% of consolidated         | 14%    | 13%    | 15%    | 15%    | 16%    | 15%   
|Germany                   |        |        |        |        |        |       
|Natural gas (mmcf/d)      | 15.78  | 14.99  | -      | -      | -      | -     
|Total (boe/d)             | 2,630  | 2,498  | -      | -      | -      | -     
|% of consolidated         | 5%     | 5%     | -      | -      | -      | -     
|Ireland                   |        |        |        |        |        |       
|Natural gas (mmcf/d)      | 0.03   | -      | -      | -      | -      | -     
|Total (boe/d)             | 5      | -      | -      | -      | -      | -     
|% of consolidated         | -      | -      | -      | -      | -      | -     
|Australia                 |        |        |        |        |        |       
|Crude oil (bbls/d)        | 6,454  | 6,571  | 6,481  | 6,360  | 8,168  | 7,354 
|% of consolidated         | 12%    | 13%    | 16%    | 17%    | 23%    | 23%   
|United States             |        |        |        |        |        |       
|Crude oil (bbls/d)        | 231    | 49     | -      | -      | -      | -     
|NGLs (bbls/d)             | 7      | -      |        |        |        |       
|Natural gas (mmcf/d)      | 0.05   | -      | -      | -      | -      | -     
|Total (boe/d)             | 247    | 49     | -      | -      | -      | -     
|% of consolidated         | -      | -      | -      | -      | -      | -     
|Consolidated              |        |        |        |        |        |       
|Crude oil & NGLs (bbls/d) | 32,716 | 31,432 | 27,471 | 25,270 | 22,334 | 19,941
|% of consolidated         | 60%    | 63%    | 67%    | 67%    | 63%    | 62%   
|Natural gas (mmcf/d)      | 133.24 | 108.85 | 81.21  | 75.20  | 77.21  | 73.14 
|% of consolidated         | 40%    | 37%    | 33%    | 33%    | 37%    | 38%   
|Total (boe/d)             | 54,922 | 49,573 | 41,005 | 37,803 | 35,202 | 32,132

46


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis


Supplemental Table 5: Segmented Financial
Results



|                                            | Three
    Months Ended December 31, 2015
|------------------------------------------- | ----------------------------------------
|($M)                                        | Canada                                  
|Drilling
    and development                | 27,554                                  
|Oil
    and gas sales to external customers | 73,952                                  
|Royalties                                   | (7,146)                                 
|Revenue
    from external customers         | 66,806                                  
|Transportation
    expense                  | (3,784)                                 
|Operating
    expense                       | (24,575)                                
|General
    and administration              | (3,669)                                 
|PRRT                                        | -                                       
|Corporate
    income taxes                  | -                                       
|Interest
    expense                        | -                                       
|Realized
    gain on derivative instruments | -                                       
|Realized
    foreign exchange loss          | -                                       
|Realized
    other income                   | -                                       
|Fund
    flows from operations              | 34,778                                  



|                                            | Year
    Ended December 31, 2015
|------------------------------------------- | --------------------------------
|($M)                                        | Canada                          
|Total
    assets                            | 1,609,180                       
|Drilling
    and development                | 201,508                         
|Oil
    and gas sales to external customers | 320,613                         
|Royalties                                   | (28,144)                        
|Revenue
    from external customers         | 292,469                         
|Transportation
    expense                  | (16,326)                        
|Operating
    expense                       | (89,085)                        
|General
    and administration              | (16,888)                        
|PRRT                                        | -                               
|Corporate
    income taxes                  | -                               
|Interest
    expense                        | -                               
|Realized
    gain on derivative instruments | -                               
|Realized
    foreign exchange gain          | -                               
|Realized
    other income                   | -                               
|Fund
    flows from operations              | 170,170                         



NON-GAAP FINANCIAL MEASURES



This MD&A includes references to
certain financial measures which do not have standardized meanings prescribed by IFRS and are not disclosed in our audited consolidated
financial statements. As such, these financial measures are considered non-GAAP financial measures and therefore may not be comparable
with similar measures presented by other issuers.



Fund flows from operations per basic
and diluted share:Management assesses fund flows from operations on a per share basis as we believe this provides a measure
of our operating performance after taking into account the issuance and potential future issuance of Vermilion common shares. Fund
flows from operations per basic share is calculated by dividing fund flows from operations by the basic weighted average shares
outstanding as defined under IFRS. Fund flows from operations per diluted share is calculated by dividing fund flows from operations
by the sum of basic weighted average shares outstanding and incremental shares issuable under our equity based compensation plans
as determined using the treasury stock method.



Free cash flow:Represents fund
flows from operations in excess of capital expenditures.  We consider free cash flow to be a key measure as it is used to
determine the funding available for investing and financing activities, including payment of dividends, repayment of long-term
debt, reallocation to existing business units, and deployment into new ventures.



Net dividends:We define net dividends
as dividends declared less proceeds received for the issuance of shares pursuant to the dividend reinvestment plan. Management
monitors net dividends and net dividends as a percentage of fund flows from operations to assess our ability to pay dividends.



Payout:We define payout as net dividends
plus drilling and development, exploration and evaluation, dispositions and asset retirement obligations settled. Management uses
payout to assess the amount of cash distributed back to shareholders and re-invested in the business for maintaining production
and organic growth.



47


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis


Fund flows from operations (excluding Corrib)
and Payout (excluding Corrib):Management excludes expenditures relating to the Corrib project in assessing fund flows from
operations (a non-GAAP financial measure) and payout in order to assess our ability to generate cash and finance organic growth
from our current producing assets.



Diluted shares outstanding:Is the sum
of shares outstanding at the period end plus outstanding awards under the VIP, based on current estimates of future performance
factors and forfeiture rates.



Cash dividends per share:Represents
cash dividends declared per share.



Total returns:Includes cash dividends
per share and the change in Vermilion’s share price on the Toronto Stock Exchange.



The following tables reconcile fund flows from
operations (excluding Corrib), net dividends, payout, and diluted shares outstanding to their most directly comparable GAAP measures
as presented in our financial statements:



|                                              |          | Three Months Ended |          |         | Year Ended
|--------------------------------------------- | -------- | ------------------ | -------- | ------- | ----------
|                                              |          | Dec 31,            | Sep 30,  | Dec 31, |           
|($M)                                          | 2015     | 2015               | 2014     |         |           
|Cash flows from operating activities          | 164,863  | 122,230            | 229,146  |         |           
|Changes in non-cash operating working capital | (33,343) | 5,082              | (49,865) |         |           
|Asset retirement obligations settled          | 4,921    | 2,123              | 6,247    |         |           
|Fund flows from operations                    | 136,441  | 129,435            | 185,528  |         |           
|Expenses related to Corrib                    | 2,252    | 2,429              | 2,299    |         |           
|Fund flows from operations (excluding Corrib) | 138,693  | 131,864            | 187,827  |         |           



|                                                             |                                  | Three
    Months Ended |             |             | Year
    Ended
|------------------------------------------------------------ | -------------------------------- | ---------------------- | ----------- | ----------- | --------------
|                                                             |                                  | Dec
    31,            | Sep
    30, | Dec
    31, |               
|($M)                                                         | 2015                             | 2015                   | 2014        |             |               
|Dividends
    declared                                       | 71,965                           | 71,244                 | 69,119      |             |               
|Issuance
    of shares pursuant to the dividend reinvestment |                                  |                        |             |             |               
|                                                             | and
    Premium DividendTM plans | (46,764)               | (44,590)    | (20,980)    |               
|Net
    dividends                                            | 25,201                           | 26,654                 | 48,139      |             |               
|Drilling
    and development                                 | 128,996                          | 93,381                 | 151,395     |             |               
|Exploration
    and evaluation                               | -                                | -                      | 14,848      |             |               
|Asset
    retirement obligations settled                     | 4,921                            | 2,123                  | 6,247       |             |               
|Payout                                                       | 159,118                          | 122,158                | 220,629     |             |               
|Corrib
    drilling and development                          | (12,493)                         | (20,694)               | (20,932)    |             |               
|Payout
    (excluding Corrib)                                | 146,625                          | 101,464                | 199,697     |             |               



|                                              | As at  
|--------------------------------------------- | -------
|                                              | Dec 31,
|('000s of shares)                             | 2015   
|Shares outstanding                            | 111,991
|Potential shares issuable pursuant to the VIP | 3,033  
|Diluted shares outstanding                    | 115,024



48


Vermilion Energy Inc.Exhibit 99.2  - 2015 Management’s Discussion and Analysis


CORPORATE INFORMATION





|DIRECTORS
        
        Lorenzo
        Donadeo 1
        Calgary, Alberta
        
        Larry
        J. Macdonald 2, 4, 5, 6
        Chairman
        & CEO, Point Energy Ltd.
        Calgary,
        Alberta
        
        Claudio
        A. Ghersinich 3, 6
        Executive
        Director, Carrera Investments Corp.
        Calgary, Alberta
        
        Joseph
        F. Killi 3, 4
        Chairman,
        Parkbridge Lifestyle Communities Inc.
        Vice Chairman, Realex Properties Corp.
        Calgary,
        Alberta
        Loren M. Leiker 6
        Houston,
        Texas
        William
        F. Madison 5, 6
        Sugar Land, Texas
        Timothy R. Marchant 5, 6
        Calgary, Alberta
        
        Sarah
        E. Raiss 4, 5
        Calgary,
        Alberta
        
        Kevin J.
        Reinhart 3, 4
        Calgary, Alberta
        
        Catherine
        L. Williams 3, 4
        Calgary, Alberta
        1Chairman
        of the Board
        2Lead Director
        3	Audit Committee
        4	Governance and Human Resources Committee
        5	Health, Safety and Environment Committee
        6	Independent Reserves Committee
        
        ANNUAL
        GENERAL MEETING
        
        May 6, 2016
        10:00 AM MST
        The Ballroom
        Metropolitan
        Centre
        333 –
        4th Avenue S.W.
        Calgary,
        Alberta | OFFICERS
        AND KEY PERSONNELCANADA
        Anthony Marino, P.Eng.
        President & Chief Executive Officer
        John
        D. Donovan, FCA
        Executive
        Vice President Business Development
        
        Curtis
        W. Hicks, CA
        Executive
        Vice President & Chief Financial Officer
        
        Mona
        Jasinski, M.B.A., ICD.D., C.H.R.P.
        Executive
        Vice President, People and Culture
        Michael Kaluza, P.Eng.
        Executive
        Vice President & Chief Operating Officer
        
        Dion
        Hatcher, P.Eng.
        Vice
        President Canada Business Unit
        
        Terry
        Hergott, CMA
        Vice
        President Marketing
        
        Daniel
        Goulet, P.Eng.
        Director
        Corporate HSE
        
        Bryce
        Kremnica, P.Eng.
        Director
        Field Operations – Canada Business Unit
        
        Dean
        N. Morrison, CFA
        Director
        Investor Relations
        
        Mike
        Prinz
        Director
        Information Technology & Information Systems
        
        Jenson
        Tan, P.Eng.
        Director
        New Ventures
        Robert (Bob) J. Engbloom, LL.B
        Corporate
        Secretary
        
        UNITED
        STATES
        Daniel
        G. Anderson
        Managing
        Director – U.S. Business Unit
        
        Timothy
        R. Morris
        Director,
        U.S. Business Development – U.S. Business Unit
        EUROPE
        Gerard
        Schut, P.Eng.
        Vice
        President European Operations
        
        Darcy
        Kerwin, P.Eng.
        Managing
        Director - France Business Unit
        
        Scott
        Seatter, P.Eng.
        Managing
        Director - Netherlands Business Unit
        
        Albrecht
        Moehring
        Managing
        Director - Germany Business Unit
        
        Bryan
        Sralla
        Managing
        Director - Central & Eastern Europe Business Unit
        
        AUSTRALIA
        Bruce
        D. Lake, P.Eng.
        Managing
        Director - Australia Business Unit | AUDITORS
        Deloitte LLP
        Calgary,
        Alberta
        
        BANKERS
        The Toronto-Dominion Bank
        Bank
        of Montreal
        Canadian
        Imperial Bank of Commerce
        
        Royal
        Bank of Canada
        
        The
        Bank of Nova Scotia
        
        National
        Bank of Canada
        Alberta Treasury Branches
        HSBC
        Bank Canada
        La
        Caisse Centrale Desjardins du Québec
        Wells
        Fargo Bank N.A., Canadian Branch
        Bank of America N.A., Canada Branch
        BNP
        Paribas, Canada Branch
        Citibank
        N.A., Canadian Branch - Citibank Canada
        JPMorgan
        Chase Bank, N.A., Toronto Branch
        Union
        Bank, Canada Branch
        Canadian
        Western Bank
        
        Goldman
        Sachs Lending Partners LLC
        
        EVALUATION
        ENGINEERS
        GLJ Petroleum Consultants Ltd.
        Calgary,
        Alberta
        
        LEGAL
        COUNSEL
        Norton Rose Fulbright Canada LLP
        Calgary,
        Alberta
        
        TRANSFER
        AGENT
        Computershare Trust Company of Canada
        
        STOCK
        EXCHANGE LISTINGS
        The Toronto Stock Exchange (“VET”)
        The
        New York Stock Exchange (“VET”)
        
        INVESTOR
        RELATIONS CONTACT
        Dean Morrison, CFA
        Director
        Investor Relations
        403-269-4884 TEL
        403-476-8100 FAX
        1-866-895-8101 IR TOLL FREE
        investor_relations@vermilionenergy.com
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49