----

| ·   | capital expenditures; |
|--------------------|-----------------------|

| ·   | business strategy and objectives; |
|--------------------|-----------------------------------|

| ·   | reserve quantities and the discounted present value of future net cash flows from such reserves; |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | net revenue; |
|--------------------|--------------|

| ·   | future production levels; |
|--------------------|---------------------------|

| ·   | exploration plans; |
|--------------------|--------------------|

| ·   | development plans; |
|--------------------|--------------------|

| ·   | acquisition and disposition plans and the timing thereof; |
|--------------------|-----------------------------------------------------------|

| ·   | operating and other costs; |
|--------------------|----------------------------|

| ·   | royalty rates; |
|--------------------|----------------|

| ·   | Vermilion's additional future payment in connection with the Corrib acquisition; |
|--------------------|----------------------------------------------------------------------------------|

| ·   | the timing of first commercial gas from the Corrib field; |
|--------------------|-----------------------------------------------------------|

| ·   | the decision of the Corrib joint venture consortium to drill an exploratory well at the Corrib field and the timing thereof; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------|

| ·   | estimate of Vermilion’s share of the expected gas rates from the Corrib field. |
|--------------------|--------------------------------------------------------------------------------------|

| · | the ability of the Trust to obtain equipment, services and supplies in a timely manner to carry out its activities in Canada and internationally; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the ability of the Trust to market oil and natural gas successfully to current and new customers; |
|--------|---------------------------------------------------------------------------------------------------|

| · | the timing and costs of pipeline and storage facility construction and expansion and the ability to secure adequate product transportation; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

| · | the timely receipt of required regulatory approvals; |
|--------|------------------------------------------------------|

| · | the ability of the Trust to obtain financing on acceptable terms; |
|--------|-------------------------------------------------------------------|

| · | currency, exchange and interest rates; and |
|--------|--------------------------------------------|

| · | future oil and gas prices. |
|--------|----------------------------|

| · | 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 and natural gas and market demand; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | risks and uncertainties involving geology of oil and gas deposits; |
|--------|--------------------------------------------------------------------|

| · | risks inherent in the Trust's marketing operations, including credit risk; |
|--------|----------------------------------------------------------------------------|

| · | the uncertainty of reserves estimates and reserves life; |
|--------|----------------------------------------------------------|

| · | the uncertainty of estimates and projections relating to production, costs and expenses; |
|--------|------------------------------------------------------------------------------------------|

| · | potential delays or changes in plans with respect to exploration or development projects or capital expenditures; |
|--------|-------------------------------------------------------------------------------------------------------------------|

| · | the Trust's ability to enter into or renew leases; |
|--------|----------------------------------------------------|

| · | fluctuations in oil and gas prices, foreign currency exchange rates and interest rates; |
|--------|-----------------------------------------------------------------------------------------|

| · | health, safety and environmental risks; |
|--------|-----------------------------------------|

| · | uncertainties as to the availability and cost of financing; |
|--------|-------------------------------------------------------------|

----

| · | the ability of the Trust to add production and reserves through development and exploration activities; |
|--------|---------------------------------------------------------------------------------------------------------|

| · | general economic and business conditions; |
|--------|-------------------------------------------|

| · | the possibility that government policies or laws may change or governmental approvals may be delayed or withheld; |
|--------|-------------------------------------------------------------------------------------------------------------------|

| · | uncertainty in amounts and timing of royalty payments; |
|--------|--------------------------------------------------------|

| · | risks associated with existing and potential future law suits and regulatory actions against the Trust; and |
|--------|-------------------------------------------------------------------------------------------------------------|

| · | other risks and uncertainties described elsewhere in this document or in the Trust's other filings with Canadian securities authorities. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

|                                                     |                            | 2009   |      |   | 2008   |   |
|----------------------------------------------------------|---------------------------------|--------|-----------|--------|--------|--------|
| ASSETS                                                   |                            |   |      |   |   |   |
| Current                                                  |                            |   |      |   |   |   |
| Cash and cash equivalents (Notes 2 and 18)               |                            | $      | 99,066    |   |   | $      | 67,231 |   |
| Short-term investments (Note 2)                          |                            |   | 15,895    |   |   |   | 9,491 |   |
| Accounts receivable                                      |                            |   | 117,051   |   |   |   | 123,794 |   |
| Crude oil inventory                                      |                            |   | 5,235     |   |   |   | 12,167 |   |
| Derivative instruments (Note 13)                         |                            |   | 8,217     |   |   |   | 11,638 |   |
| Prepaid expenses and other                               |                            |   | 11,422    |   |   |   | 15,852 |   |
|                                                     |                            |   | 256,886   |   |   |   | 240,173 |   |
| Derivative instruments (Note 13)                         |                            |   | 7,896     |   |   |   | 3,566 |   |
| Future income taxes (Note 8)                             |                            |   | 119,714   |   |   |   | - |   |
| Long-term investments (Notes 4 and 16)                   |                            |   | 4,342     |   |   |   | 63,752 |   |
| Goodwill                                                 |                            |   | 19,840    |   |   |   | 19,840 |   |
| Reclamation fund (Note 6)                                |                            |   | 69,003    |   |   |   | 63,399 |   |
| Capital assets (Notes 4 and 5)                           |                            |   | 1,606,995 |   |   |   | 1,407,629 |   |
|                                                     |                            | $      | 2,084,676 |   |   | $      | 1,798,359 |   |
| LIABILITIES                                              |                            |   |      |   |   |   |   |   |
| Current                                                  |                            |   |      |   |   |   |   |   |
| Accounts payable and accrued liabilities                 |                            | $      | 197,633   |   |   | $      | 179,312 |   |
| Distributions payable to unitholders                     |                            |   | 15,109    |   |   |   | 13,340 |   |
| Derivative instruments (Note 13)                         |                            |   | 1,772     |   |   |   | - |   |
| Income taxes payable                                     |                            |   | 2,366     |   |   |   | 57,623 |   |
| Future income taxes (Note 8)                             |                            |   | 683       |   |   |   | - |   |
|                                                     |                            |   | 217,563   |   |   |   | 250,275 |   |
| Long-term debt (Note 7)                                  |                            |   | 159,723   |   |   |   | 197,651 |   |
| Amount due pursuant to acquisition (Note 4)              |                            |   | 111,402   |   |   |   | - |   |
| Asset retirement obligations (Note 6)                    |                            |   | 237,110   |   |   |   | 265,101 |   |
| Future income taxes (Note 8)                             |                            |   | 218,764   |   |   |   | 245,799 |   |
|                                                     |                            |   | 944,562   |   |   |   | 958,826 |   |
| Non-controlling interest - exchangeable shares (Note 10) |                            |   | 100,824   |   |   |   | 84,523 |   |
| UNITHOLDERS’ EQUITY                                |                            |   |      |   |   |   |   |   |
| Unitholders’ capital (Note 9)                      |                            |   | 711,667   |   |   |   | 444,353 |   |
| Contributed surplus (Note 9)                             |                            |   | 30,413    |   |   |   | 29,698 |   |
| Retained earnings                                        |                            |   | 297,210   |   |   |   | 280,959 |   |
|                                                     |                            |   | 1,039,290 |   |   |   | 755,010 |   |
|                                                     |                            | $      | 2,084,676 |   |   | $      | 1,798,359 |   |
|                                                     |                            |
|                                                     |                            |
| APPROVED BY THE BOARD                                    |                            |
|                                                     |                            |
| (“W. Kenneth Davidson”)                      | (“Lorenzo Donadeo”) |   |
|                                                     |                            |   |
| W. Kenneth Davidson, Director                            | Lorenzo Donadeo, Director       |   |

----

|                                                            |   | 2009   |       |   | 2008   |   |
|-----------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| REVENUE                                                         |   |   |       |   |   |   |
| Petroleum and natural gas revenue                               |   | $      | 639,751    |   |   | $      | 1,001,905 |   |
| Royalties                                                       |   |   | (97,632    | )      |   |   | (130,828 | ) |
|                                                            |   |   | 542,119    |   |   |   | 871,077 |   |
| EXPENSES AND OTHER (INCOME) EXPENSE                             |   |   |       |   |   |   |   |   |
| Operating                                                       |   |   | 139,606    |   |   |   | 143,538 |   |
| Transportation                                                  |   |   | 18,939     |   |   |   | 23,545 |   |
| Unit based compensation (Note 11)                               |   |   | 18,196     |   |   |   | 18,388 |   |
| (Gain) on derivative instruments (Note 13)                      |   |   | (4,526     | )      |   |   | (2,477 | ) |
| Interest                                                        |   |   | 13,268     |   |   |   | 16,331 |   |
| General and administration                                      |   |   | 31,192     |   |   |   | 24,837 |   |
| Foreign exchange (gain) loss                                    |   |   | (39,894    | )      |   |   | 47,110 |   |
| Other (income) expense                                          |   |   | (8,021     | )      |   |   | 5,261 |   |
| Depletion, depreciation and accretion                           |   |   | 248,726    |   |   |   | 255,473 |   |
|                                                            |   |   | 417,486    |   |   |   | 532,006 |   |
| EARNINGS BEFORE INCOME TAXES AND OTHER ITEMS                    |   |   | 124,633    |   |   |   | 339,071 |   |
|                                                            |   |   |       |   |   |   |   |   |
| INCOME TAXES (NOTE 8)                                           |   |   |       |   |   |   |   |   |
| Future                                                          |   |   | (30,963    | )      |   |   | 4,003 |   |
| Current                                                         |   |   | 29,429     |   |   |   | 83,804 |   |
|                                                            |   |   | (1,534     | )      |   |   | 87,807 |   |
| OTHER ITEMS                                                     |   |   |       |   |   |   |   |   |
| Non-controlling interest - exchangeable shares (Note 10)        |   |   | 17,977     |   |   |   | 22,526 |   |
| (Gain) related to equity method investment (Note 4)             |   |   | (77,308    | )      |   |   | (451 | ) |
|                                                            |   |   | (59,331    | )      |   |   | 22,075 |   |
| NET EARNINGS AND COMPREHENSIVE INCOME                           |   |   | 185,498    |   |   |   | 229,189 |   |
| Retained earnings, beginning of year                            |   |   | 280,959    |   |   |   | 217,209 |   |
| Distributions declared (Note 9)                                 |   |   | (166,385   | )      |   |   | (158,674 | ) |
| Repurchase of units (Note 9)                                    |   |   | -          |   |   |   | (931 | ) |
| Unit-settled distributions on vested unit based awards (Note 9) |   |   | (2,862     | )      |   |   | (5,834 | ) |
|                                                            |   |   |       |   |   |   |   |   |
| RETAINED EARNINGS, END OF YEAR                                  |   | $      | 297,210    |   |   | $      | 280,959 |   |
|                                                            |   |   |       |   |   |   |   |   |
| NET EARNINGS PER TRUST UNIT (NOTE 12)                           |   |   |       |   |   |   |   |   |
| Basic                                                           |   | $      | 2.56       |   |   | $      | 3.30 |   |
| Diluted                                                         |   | $      | 2.53       |   |   | $      | 3.23 |   |
|                                                            |   |   |       |   |   |   |   |   |
| WEIGHTED AVERAGE TRUST UNITS OUTSTANDING (NOTE 12)              |   |   |       |   |   |   |   |   |
| Basic                                                           |   |   | 72,405,606 |   |   |   | 69,548,183 |   |
| Diluted                                                         |   |   | 80,569,607 |   |   |   | 78,018,769 |   |

----

|                                                                                                                                                                                             |   | 2009   |     |   | 2008   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| OPERATING                                                                                                                                                                                        |   |   |     |   |   |   |
| Net earnings                                                                                                                                                                                     |   | $      | 185,498  |   |   | $      | 229,189 |   |
| Adjustments:                                                                                                                                                                                     |   |   |     |   |   |   |   |   |
| Depletion, depreciation and accretion                                                                                                                                                            |   |   | 248,726  |   |   |   | 255,473 |   |
| Change in unrealized gains and losses and accruals relating to              derivative contracts (Note 13)                 |   |   | 863      |   |   |   | (13,102 | ) |
| Unit based compensation                                                                                                                                                                          |   |   | 18,196   |   |   |   | 18,388 |   |
| (Gain) related to equity method investment                                                                                                                                                       |   |   | (77,308  | )      |   |   | (451 | ) |
| Unrealized foreign exchange (gain) loss                                                                                                                                                          |   |   | (40,374  | )      |   |   | 52,579 |   |
| Non-controlling interest - exchangeable shares                                                                                                                                                   |   |   | 17,977   |   |   |   | 22,526 |   |
| Change in unrealized gains and losses and accruals included in other (income) expense              relating to investments |   |   | (8,052   | )      |   |   | 5,361 |   |
| Proceeds from held for trading investments                                                                                                                                                       |   |   | 2,674    |   |   |   | - |   |
| Future income taxes                                                                                                                                                                              |   |   | (30,963  | )      |   |   | 4,003 |   |
|                                                                                                                                                                                             |   |   | 317,237  |   |   |   | 573,966 |   |
| Asset retirement costs incurred (Note 6)                                                                                                                                                         |   |   | (10,139  | )      |   |   | (10,200 | ) |
| Changes in non-cash operating working capital (Note 14)                                                                                                                                          |   |   | (76,782  | )      |   |   | 96,369 |   |
| Cash flows from operating activities                                                                                                                                                             |   |   | 230,316  |   |   |   | 660,135 |   |
|                                                                                                                                                                                             |   |   |     |   |   |   |   |   |
| INVESTING                                                                                                                                                                                        |   |   |     |   |   |   |   |   |
| Drilling and development of petroleum and natural gas properties                                                                                                                                 |   |   | (194,666 | )      |   |   | (186,836 | ) |
| Acquisition of petroleum and natural gas properties                                                                                                                                              |   |   | (159,536 | )      |   |   | (46,466 | ) |
| Corporate acquisition, net of cash acquired                                                                                                                                                      |   |   | -        |   |   |   | (1,764 | ) |
| Purchase of short-term investments                                                                                                                                                               |   |   | (6,404   | )      |   |   | (9,491 | ) |
| Long-term investment (Note 4)                                                                                                                                                                    |   |   | 136,479  |   |   |   | (627 | ) |
| Contributions to reclamation fund (Note 6)                                                                                                                                                       |   |   | -        |   |   |   | (10,378 | ) |
| Changes in non-cash investing working capital (Note 14)                                                                                                                                          |   |   | (1,631   | )      |   |   | (179 | ) |
| Cash flows used in investing activities                                                                                                                                                          |   |   | (225,758 | )      |   |   | (255,741 | ) |
|                                                                                                                                                                                             |   |   |     |   |   |   |   |   |
| FINANCING                                                                                                                                                                                        |   |   |     |   |   |   |   |   |
| Decrease in long-term debt                                                                                                                                                                       |   |   | (37,053  | )      |   |   | (258,836 | ) |
| Issue of trust units for cash (Note 9)                                                                                                                                                           |   |   | 240,178  |   |   |   | 3,740 |   |
| Issue of trust units pursuant to the distribution reinvestment plan                                                                                                                              |   |   | -        |   |   |   | 18,453 |   |
| Cash distributions                                                                                                                                                                               |   |   | (164,616 | )      |   |   | (158,128 | ) |
| Repurchase of units                                                                                                                                                                              |   |   | -        |   |   |   | (1,213 | ) |
| Cash flows from (used in) financing activities                                                                                                                                                   |   |   | 38,509   |   |   |   | (395,984 | ) |
| Foreign exchange (loss) gain on cash held in foreign currencies                                                                                                                                  |   |   | (11,232  | )      |   |   | 10,953 |   |
|                                                                                                                                                                                             |   |   |     |   |   |   |   |   |
| Net change in cash and cash equivalents                                                                                                                                                          |   |   | 31,835   |   |   |   | 19,363 |   |
| Cash and cash equivalents, beginning of year                                                                                                                                                     |   |   | 67,231   |   |   |   | 47,868 |   |
| Cash and cash equivalents, end of year (Note 18)                                                                                                                                                 |   | $      | 99,066   |   |   | $      | 67,231 |   |
|                                                                                                                                                                                             |   |   |     |   |   |   |   |   |
| Supplementary information - cash payments                                                                                                                                                        |   |   |     |   |   |   |   |   |
| Interest paid                                                                                                                                                                                    |   | $      | 12,301   |   |   | $      | 14,905 |   |
| Income taxes paid                                                                                                                                                                                |   | $      | 84,686   |   |   | $      | 27,699 |   |

----

----

----

|   | - | Sales, other revenues, royalties and all other expenses are translated at an appropriately weighted average exchange rate. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------|

----

----

|   | Capital assets              |   | $      | 304,564 |   |
|--------|-----------------------------|--------|--------|---------|--------|
|   | Future income tax assets    |   |   | 67,299  |   |
|   | Asset retirement obligation |   |   | (9,788  | )      |
|   | Working capital             |   |   | (57,507 | )      |
|   | Total consideration         |   | $      | 304,568 |   |

|   | Cash                                                    |   | $      | 136,832 |   |
|--------|---------------------------------------------------------|--------|--------|---------|--------|
|   | Present value of estimated future payment due to vendor |   |   | 167,736 |   |
|   | Total consideration                                     |   | $      | 304,568 |   |

|   | Capital assets              |   | $      | 46,057 |   |
|--------|-----------------------------|--------|--------|--------|--------|
|   | Asset retirement obligation |   |   | (1,931 | )      |
|   | Total consideration         |   | $      | 44,126 |   |

----

|   |    2009                             |   |   Cost |      |   | Accumulated Depletion, Depreciation and Amortization |   |      |  NetBook Value |   |
|--------|----------------------------------------------------|--------|------------------|-----------|--------|------------------------------------------------------|--------|-----------|---------------------|--------|
|   | Petroleum and natural gas properties and equipment |   | $                | 2,929,311 |   |                                                 | $      | 1,325,568 |                |   | $ | 1,603,743 |   |
|   | Furniture and equipment                            |   |             | 12,450    |   |                                                 |   | 9,198     |                |   |   | 3,252 |   |
|   |                                               |   | $                | 2,941,761 |   |                                                 | $      | 1,334,766 |                |   | $ | 1,606,995 |   |

|   |    2008                             |   |   Cost |      |   | Accumulated Depletion, Depreciation and Amortization |   |      |  NetBook Value |   |
|--------|----------------------------------------------------|--------|------------------|-----------|--------|------------------------------------------------------|--------|-----------|---------------------|--------|
|   | Petroleum and natural gas properties and equipment |   | $                | 2,502,539 |   |                                                 | $      | 1,098,127 |                |   | $ | 1,404,412 |   |
|   | Furniture and equipment                            |   |             | 11,561    |   |                                                 |   | 8,344     |                |   |   | 3,217 |   |
|   |                                               |   | $                | 2,514,100 |   |                                                 | $      | 1,106,471 |                |   | $ | 1,407,629 |   |

|   | CDN$/BOE                    |   | Canada |   |   | France |   |   | Netherlands |   |   | Australia |   |   | Ireland |   |
|--------|-----------------------------|--------|--------|--------|--------|--------|--------|--------|-------------|--------|--------|-----------|--------|--------|---------|--------|
|   | 2010                        |   | $      | 48.68  |   |   | $      | 73.17  |        |   | $      | 52.22     |   |   | $       | 82.63  |   |   | $ | - |   |
|   | 2011                        |   | $      | 52.92  |   |   | $      | 75.98  |        |   | $      | 61.65     |   |   | $       | 85.79  |   |   | $ | - |   |
|   | 2012                        |   | $      | 54.35  |   |   | $      | 78.81  |        |   | $      | 60.57     |   |   | $       | 88.95  |   |   | $ | - |   |
|   | 2013                        |   | $      | 55.15  |   |   | $      | 81.64  |        |   | $      | 60.99     |   |   | $       | 92.11  |   |   | $ | 61.16 |   |
|   | 2014                        |   | $      | 56.31  |   |   | $      | 84.35  |        |   | $      | 63.08     |   |   | $       | 95.27  |   |   | $ | 63.17 |   |
|   | 2015                        |   | $      | 57.46  |   |   | $      | 85.87  |        |   | $      | 64.36     |   |   | $       | 97.20  |   |   | $ | 64.41 |   |
|   | 2016                        |   | $      | 59.56  |   |   | $      | 87.40  |        |   | $      | 65.67     |   |   | $       | 99.18  |   |   | $ | 65.67 |   |
|   | 2017                        |   | $      | 62.61  |   |   | $      | 89.01  |        |   | $      | 67.00     |   |   | $       | 101.19 |   |   | $ | 66.95 |   |
|   | 2018                        |   | $      | 65.77  |   |   | $      | 90.68  |        |   | $      | 68.37     |   |   | $       | 103.25 |   |   | $ | 68.27 |   |
|   | 2019                        |   | $      | 67.65  |   |   | $      | 92.36  |        |   | $      | 69.75     |   |   | $       | 105.35 |   |   | $ | 69.60 |   |
|   | Average increase thereafter |   |   | 2.0    | %      |   |   | 2.0    | %           |   |   | 2.0       | %      |   |    | 2.0    | % |   |   | 2.0 | % |

----

|   |                                     |   | 2009   |    |   | 2008   |   |
|--------|------------------------------------------|--------|--------|---------|--------|--------|--------|
|   | Carrying amount, beginning of year       |   | $      | 265,101 |   |   | $      | 163,374 |   |
|   | Increase in liabilities in the period    |   |   | 10,173  |   |   |   | 2,487 |   |
|   | Disposition of liabilities in the period |   |   | (10,139 | )      |   |   | (10,200 | ) |
|   | Change in estimate                       |   |   | (24,456 | )      |   |   | 66,576 |   |
|   | Accretion expense                        |   |   | 20,255  |   |   |   | 14,468 |   |
|   | Foreign exchange                         |   |   | (23,824 | )      |   |   | 28,396 |   |
|   | Carrying amount, end of year             |   | $      | 237,110 |   |   | $      | 265,101 |   |

|   |                                           |   | 2009   |   |   | 2008   |   |
|--------|------------------------------------------------|--------|--------|--------|--------|--------|--------|
|   | Cash and short term investments, at fair value |   | $      | 22,028 |   |   | $      | 21,700 |   |
|   | Equity and debt securities, at fair value      |   |   | 46,975 |   |   |   | 41,699 |   |
|   |                                           |   | $      | 69,003 |   |   | $      | 63,399 |   |

----

|   |                                    |   | 2009   |     |   | 2008   |   |
|--------|-----------------------------------------|--------|--------|----------|--------|--------|--------|
|   | Future income tax liabilities:          |   |   |     |   |   |   |
|   | Capital assets                          |   | $      | (223,918 | )      |   | $      | (264,189 | ) |
|   | Derivative contracts                    |   |   | (4,346   | )      |   |   | (4,672 | ) |
|   | Partnership income deferral             |   |   | -        |   |   |   | (18,120 | ) |
|   | Asset retirement obligation             |   |   | (41,602  | )      |   |   | (4,630 | ) |
|   | Basis difference of investments         |   |   | (1,090   | )      |   |   | - |   |
|   | Other                                   |   |   | -        |   |   |   | (3,678 | ) |
|   | Unrealized foreign exchange             |   |   | (11,305  | )      |   |   | (193 | ) |
|   | Future income tax assets:               |   |   |     |   |   |   |   |   |
|   | Capital assets                          |   |   | 67,403   |   |   |   | - |   |
|   | Non-capital losses                      |   |   | 66,145   |   |   |   | 49,491 |   |
|   | Partnership loss deferral               |   |   | 12,449   |   |   |   | - |   |
|   | Basis difference of investments         |   |   | -        |   |   |   | 62 |   |
|   | Other                                   |   |   | 1,298    |   |   |   | - |   |
|   | Share issue costs                       |   |   | 2,011    |   |   |   | 130 |   |
|   | Asset retirement obligation             |   |   | 33,222   |   |   |   | - |   |
|   | Net future income tax (liability)       |   | $      | (99,733  | )      |   | $      | (245,799 | ) |
|   | Comprised of:                           |   |   |     |   |   |   |   |   |
|   | Non-current future income tax asset     |   | $      | 119,714  |   |   | $      | - |   |
|   | Current future income tax liability     |   |   | (683     | )      |   |   | - |   |
|   | Non-current future income tax liability |   |   | (218,764 | )      |   |   | (245,799 | ) |
|   | Net future income tax (liability)       |   | $      | (99,733  | )      |   | $      | (245,799 | ) |

|   |                                                      |   | 2009   |    |   | 2008   |   |
|--------|-----------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|   | Earnings before income taxes and non-controlling interest |   | $      | 201,941 |   |   | $      | 339,522 |   |
|   | Canadian corporate tax rate                               |   |   | 29.00   | %      |   |   | 29.50 | % |
|   | Expected tax expense                                      |   |   | 58,563  |   |   |   | 100,159 |   |
|   | Increase (decrease) in taxes resulting from:              |   |   |    |   |   |   |   |   |
|   | Income attributable to the unitholders                    |   |   | (48,252 | )      |   |   | (46,809 | ) |
|   | Tax incentive programs                                    |   |   | (5,645  | )      |   |   | - |   |
|   | Foreign tax rate differentials 1                          |   |   | 4,390   |   |   |   | 2,735 |   |
|   | Unit compensation expense                                 |   |   | 5,277   |   |   |   | 5,425 |   |
|   | Amended returns and pool estimate variances               |   |   | 137     |   |   |   | 1,722 |   |
|   | Foreign exchange                                          |   |   | (11,624 | )      |   |   | 12,525 |   |
|   | Statutory rate changes                                    |   |   | 791     |   |   |   | - |   |
|   | Other                                                     |   |   | 1,526   |   |   |   | 6,226 |   |
|   | Adjustment for capitalized interest                       |   |   | 800     |   |   |   | - |   |
|   | Adjustment to provisions for tax positions taken          |   |   | 3,340   |   |   |   | 5,824 |   |
|   | Non-taxable portion of capital gains                      |   |   | (10,837 | )      |   |   | - |   |
|   | Provision for income taxes                                |   | $      | (1,534  | )      |   | $      | 87,807 |   |

----

|   | Number of Units                                                                        |   |   | Amount     |   |
|--------|----------------------------------------------------------------------------------------|--------|--------|------------|--------|
|   | Trust Units                                                                            |   |   |       |   |   |   |
|   | Unlimited number of trust units authorized to be issued                                |   |   |       |   |   |   |
|   | Balance as at December 31, 2007                                                        |   |   | 67,335,427 |   |   | $ | 380,941 |   |
|   | Distribution reinvestment plan                                                         |   |   | 521,839    |   |   |   | 18,453 |   |
|   | Issued on conversion of exchangeable shares (Note 10)                                  |   |   | 600,697    |   |   |   | 17,766 |   |
|   | Unit rights exercised and issuance of units on vesting of trust unit award plan grants |   |   | 1,630,943  |   |   |   | 3,740 |   |
|   | Transfer from contributed surplus for unit based awards                                |   |   | -          |   |   |   | 17,304 |   |
|   | Trust units issued for bonus plan                                                      |   |   | 18,555     |   |   |   | 597 |   |
|   | Unit-settled distributions on vested unit based awards                                 |   |   | 150,908    |   |   |   | 5,834 |   |
|   | Unit buyback                                                                           |   |   | (45,600    | )      |   |   | (282 | ) |
|   | Balance as at December 31, 2008                                                        |   |   | 70,212,769 |   |   | $ | 444,353 |   |
|   | Issued on conversion of exchangeable shares (Note 10)                                  |   |   | 132,569    |   |   |   | 4,048 |   |
|   | Unit rights exercised and issuance of units on vesting of trust unit award plan grants |   |   | 945,982    |   |   |   | 2,817 |   |
|   | Transfer from contributed surplus for unit based awards                                |   |   | -          |   |   |   | 16,846 |   |
|   | Trust units issued for bonus plan                                                      |   |   | 23,790     |   |   |   | 635 |   |
|   | Unit-settled distributions on vested unit based awards                                 |   |   | 116,918    |   |   |   | 2,862 |   |
|   | Unit issuance                                                                          |   |   | 8,091,000  |   |   |   | 240,106 |   |
|   | Balance as at December 31, 2009                                                        |   |   | 79,523,028 |   |   | $ | 711,667 |   |

|   |                                                         |   | 2009   |    |   | 2008   |   |
|--------|--------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|   | Contributed Surplus                                          |   |   |    |   |   |   |
|   | Opening balance                                              |   | $      | 29,698  |   |   | $      | 29,211 |   |
|   | Unit compensation expense (excluding bonus plan)             |   |   | 17,561  |   |   |   | 17,791 |   |
|   | Transfer to unitholders’ capital for unit based awards |   |   | (16,846 | )      |   |   | (17,304 | ) |
|   | Ending balance                                               |   | $      | 30,413  |   |   | $      | 29,698 |   |

----

|   |                                  |   | 2009   |      |   | 2008   |   |
|--------|---------------------------------------|--------|--------|-----------|--------|--------|--------|
|   | Exchangeable Shares                   |   |   |      |   |   |   |
|   | Opening number of exchangeable shares |   |   | 4,085,605 |   |   |   | 4,457,473 |   |
|   | Exchanged for trust units             |   |   | (76,352   | )      |   |   | (371,868 | ) |
|   | Ending balance                        |   |   | 4,009,253 |   |   |   | 4,085,605 |   |
|   | Ending exchange ratio                 |   |   | 1.80065   |   |   |   | 1.66196 |   |
|   | Trust units issuable upon conversion  |   |   | 7,219,261 |   |   |   | 6,790,112 |   |

|   |                                                                 |   | 2009   |    |   | 2008   |   |
|--------|----------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|   | Non-controlling interest, beginning of year                          |   |   | 84,523  |   |   | $      | 68,576 |   |
|   | Reduction of book value for conversion to trust units                |   |   | (1,676  | )      |   |   | (6,579 | ) |
|   | Current period net earnings attributable to non-controlling interest |   |   | 17,977  |   |   |   | 22,526 |   |
|   | Non-controlling interest, end of year                                |   |   | 100,824 |   |   | $      | 84,523 |   |

|   | 2009            |   |        | 2008     |   |
|--------|-----------------|--------|-------------|----------|--------|
|   |            |   |        |     |   | Grant Date |   |   |   |   |   | Grant Date |   |
|   |            |   | Number of   |     |   | Weighted Average |   |   | Number of |   |   | Weighted Average |   |
|   |            |   | Unit Rights |     |   | Exercise Price |   |   | Unit Rights |   |   | Exercise Price |   |
|   | Opening balance |   |        | 339,850  |   |   | $ | 18.40 |   |   |   | 1,148,616 |   |   | $ | 14.55 |   |
|   | Exercised       |   |        | (339,850 | )      |   | $ | 18.40 |   |   |   | (808,766 | ) |   | $ | 12.93 |   |
|   | Closing balance |   |        | -        |   |   | $ | - |   |   |   | 339,850 |   |   | $ | 18.40 |   |

----

|   | 2009                           |   |   | 2008         |   |
|--------|--------------------------------|--------|--------|--------------|--------|
|   | Risk-free interest rate        |   |   | 1.4          | %      |   |   | 2.7 | % |
|   | Range of expected volatilities |   |   | 15.6% - 47.5 | %      |   |   | 12.0% - 45.1 | % |
|   | Expected life of award (years) |   |   | 2.80         |   |   |   | 2.64 |   |
|   | Fair value per award           |   | $      | 30.72        |   |   | $ | 41.96 |   |

|   | 2009            |   |   | 2008      |   |
|--------|-----------------|--------|--------|-----------|--------|
|   | Opening balance |   |   | 1,208,255 |   |   |   | 1,102,495 |   |
|   | Granted         |   |   | 663,113   |   |   |   | 533,493 |   |
|   | Vested          |   |   | (382,239  | )      |   |   | (407,113 | ) |
|   | Forfeited       |   |   | (71,815   | )      |   |   | (20,620 | ) |
|   | Closing balance |   |   | 1,417,314 |   |   |   | 1,208,255 |   |

----

|   |                                                                         |   | 2009   |       |   | 2008   |   |
|--------|------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|   | Net earnings                                                                 |   | $      | 185,498    |   |   | $      | 229,189 |   |
|   | Non-controlling interest - exchangeable shares                               |   |   | 17,977     |   |   |   | 22,526 |   |
|   | Net earnings for diluted net earnings per trust unit calculation             |   | $      | 203,475    |   |   | $      | 251,715 |   |
|   |                                                                         |   |   |       |   |   |   |   |   |
|   | Basic weighted average trust units outstanding                               |   |   | 72,405,606 |   |   |   | 69,548,183 |   |
|   | Dilutive impact of trust units issuable on conversion of exchangeable shares |   |   | 7,279,431  |   |   |   | 7,108,202 |   |
|   | Dilutive impact of unit rights incentive and trust unit award plans          |   |   | 884,570    |   |   |   | 1,362,384 |   |
|   | Diluted weighted average trust units outstanding                             |   |   | 80,569,607 |   |   |   | 78,018,769 |   |

|   | Risk Management:  Oil | Funded Cost  |   | bbls/d |   |   | US $/bbl |   |
|--------|---------------------------------|--------------|--------|--------|--------|--------|----------|--------|
|   | Collar - WTI                    |         |   |   |   |   |     |   |
|   | 2010                            | US $0.00/bbl |   |   | 1,500  |   |     | $      | 70.00 - $ 97.80 |   |
|   | 2010                            | US $1.00/bbl |   |   | 1,500  |   |     | $      | 72.00 - $ 99.00 |   |
|   | 2010                            | US $1.00/bbl |   |   | 1,500  |   |     | $      | 72.00 - $100.65 |   |
|   | 2010                            | US $1.50/bbl |   |   | 750    |   |     | $      | 70.00 - $ 97.40 |   |
|   | 2010                            | US $1.50/bbl |   |   | 750    |   |     | $      | 69.00 - $ 90.15 |   |
|   | Call Spread - BRENT             |         |   |   |   |   |     |   |   |   |
|   | 2010                            | US $4.94/bbl |   |   | 1,100  |   |     | $      | 65.00 - $ 85.00 |   |
|   | 2011                            | US $6.08/bbl |   |   | 960    |   |     | $      | 65.00 - $ 85.00 |   |
|   | 2010                            | US $5.64/bbl |   |   | 700    |   |     | $      | 65.00 - $ 85.00 |   |
|   | 2011                            | US $5.15/bbl |   |   | 600    |   |     | $      | 65.00 - $ 85.00 |   |

----

|   | Risk Management:  Natural Gas |   | Funded Cost |    |   | GJ/d   |   |   | $/bbl  |   |
|--------|-----------------------------------------|--------|-------------|---------|--------|--------|--------|--------|--------|--------|
|   | SWAP - AECO                             |   |        |    |   |   |   |   |   |   |
|   | January 2010 to October 2011            |   | $           | 0.00/GJ |   |   |   | 700    |   |   | $ | 5.13 |   |
|   | Put – AECO                        |   |        |    |   |   |   |   |   |   |   |   |   |
|   | January 2010 to March 2010              |   | $           | 0.17/GJ |   |   |   | 10,000 |   |   | $ | 4.50 |   |
|   | January 2010 to March 2010              |   | $           | 0.17/GJ |   |   |   | 4,000  |   |   | $ | 4.50 |   |
|   | April 2010 to October 2010              |   | $           | 0.35/GJ |   |   |   | 10,000 |   |   | $ | 4.50 |   |
|   | Collar – AECO                     |   |        |    |   |   |   |   |   |   |   |   |   |
|   | April 2010 to October 2010              |   | $           | 0.25/GJ |   |   |   | 2,000  |   |   | $ | 4.70 - $ 7.35 |   |

|   |                                                                                 |   | 2009   |    |   | 2008   |   |
|--------|--------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|   | Fair value of contracts, beginning of year                                           |   | $      | 15,204  |   |   | $      | 2,102 |   |
|   | Opening unrealized (gain) loss on contracts settled during the year                  |   |   | (11,959 | )      |   |   | 7,414 |   |
|   | Realized gain (loss) on contracts settled during the year                            |   |   | 5,389   |   |   |   | (10,625 | ) |
|   | Unrealized gain during the period on contracts outstanding at the end of the year    |   |   | 11,096  |   |   |   | 5,688 |   |
|   | Net (receipt from) payment to counterparties on contract settlements during the year |   |   | (5,389  | )      |   |   | 10,625 |   |
|   | Fair value of contracts, end of year                                                 |   |   | 14,341  |   |   |   | 15,204 |   |
|   | Comprised of:                                                                        |   |   |    |   |   |   |   |   |
|   | Current derivative asset                                                             |   |   | 8,217   |   |   |   | 11,638 |   |
|   | Current derivative liability                                                         |   |   | (1,772  | )      |   |   | - |   |
|   | Non-current derivative asset                                                         |   |   | 7,896   |   |   |   | 3,566 |   |
|   | Fair value of contracts, end of year                                                 |   | $      | 14,341  |   |   | $      | 15,204 |   |

|   |                                                                                |   | 2009   |    |   | 2008   |   |
|--------|-------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|   | Realized (gain) loss on contracts settled during the year                           |   | $      | (5,389  | )      |   | $      | 10,625 |   |
|   | Opening unrealized gain (loss) on contracts settled during the year                 |   |   | 11,959  |   |   |   | (7,414 | ) |
|   | Unrealized (gain) during the period on contracts outstanding at the end of the year |   |   | (11,096 | )      |   |   | (5,688 | ) |
|   | (Gain) on derivative instruments for the year                                       |   | $      | (4,526  | )      |   | $      | (2,477 | ) |

----

|   |                                                              |   | 2009   |    |   | 2008   |   |
|--------|-------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|   | Accounts receivable                                               |   | $      | 6,743   |   |   | $      | (3,901 | ) |
|   | Crude oil inventory                                               |   |   | 6,932   |   |   |   | (1,134 | ) |
|   | Prepaid expenses and other                                        |   |   | 3,555   |   |   |   | (4,182 | ) |
|   | Accounts payable and accrued liabilities and income taxes payable |   |   | (96,790 | )      |   |   | 106,323 |   |
|   | Foreign exchange                                                  |   |   | 1,147   |   |   |   | (916 | ) |
|   | Changes in non-cash working capital                               |   |   | (78,413 | )      |   |   | 96,190 |   |
|   |                                                              |   |   |    |   |   |   |   |   |
|   | Changes in non-cash operating working capital                     |   | $      | (76,782 | )      |   | $      | 96,369 |   |
|   | Changes in non-cash investing working capital                     |   |   | (1,631  | )      |   |   | (179 | ) |
|   | Changes in non-cash working capital                               |   | $      | (78,413 | )      |   | $      | 96,190 |   |

|   |                              |   | 2009   |      |   | 2008   |   |
|--------|-----------------------------------|--------|--------|-----------|--------|--------|--------|
|   | Petroleum and natural gas revenue |   |   |      |   |   |   |
|   | Canada                            |   | $      | 152,087   |   |   | $      | 307,793 |   |
|   | France                            |   |   | 203,142   |   |   |   | 318,320 |   |
|   | Netherlands                       |   |   | 68,087    |   |   |   | 114,656 |   |
|   | Australia                         |   |   | 216,435   |   |   |   | 261,136 |   |
|   | Ireland                           |   |   | -         |   |   |   | - |   |
|   |                              |   | $      | 639,751   |   |   | $      | 1,001,905 |   |
|   | Net earnings                      |   |   |      |   |   |   |   |   |
|   | Canada                            |   | $      | 25,635    |   |   | $      | 62,905 |   |
|   | France                            |   |   | 69,497    |   |   |   | 53,857 |   |
|   | Netherlands                       |   |   | 21,319    |   |   |   | 31,132 |   |
|   | Australia                         |   |   | 73,380    |   |   |   | 81,295 |   |
|   | Ireland                           |   |   | (4,333    | )      |   |   | - |   |
|   |                              |   | $      | 185,498   |   |   | $      | 229,189 |   |
|   | Capital expenditures              |   |   |      |   |   |   |   |   |
|   | Canada                            |   | $      | 75,973    |   |   | $      | 103,725 |   |
|   | France                            |   |   | 62,457    |   |   |   | 53,905 |   |
|   | Netherlands                       |   |   | 26,338    |   |   |   | 13,019 |   |
|   | Australia                         |   |   | 6,739     |   |   |   | 62,653 |   |
|   | Ireland                           |   |   | 182,695   |   |   |   | - |   |
|   |                              |   | $      | 354,202   |   |   | $      | 233,302 |   |
|   | Total assets                      |   |   |      |   |   |   |   |   |
|   | Canada                            |   | $      | 711,435   |   |   | $      | 779,634 |   |
|   | France                            |   |   | 575,426   |   |   |   | 587,979 |   |
|   | Netherlands                       |   |   | 180,803   |   |   |   | 136,403 |   |
|   | Australia                         |   |   | 250,780   |   |   |   | 294,343 |   |
|   | Ireland                           |   |   | 366,232   |   |   |   | - |   |
|   |                              |   | $      | 2,084,676 |   |   | $      | 1,798,359 |   |

----

|   |                                                                              |   | 2009   |   |   | 2008   |   |
|--------|-----------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|   | Portfolio investments, at fair value                                              |   | $      | 4,342  |   |   | $      | 4,579 |   |
|   | Investment in Verenex, equity method (fair value - $nil, 2008 - $128.5 - million) |   |   | -      |   |   |   | 59,173 |   |
|   |                                                                              |   | $      | 4,342  |   |   | $      | 63,752 |   |

|   |               |   | 2010 |   |   | 2011   |   |   | 2012   |   |   | 2013  |   |   | 2014 |   |   | Thereafter |   |   | Total  |   |
|--------|--------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|-------|--------|--------|------|--------|--------|------------|--------|--------|--------|--------|
|   | Payments by period |   | $    | 4,439  |   |   | $      | 5,864  |   |   | $      | 6,845 |   |   | $    | 6,845  |   |       | $      | 6,845  |   |   | $ | 52,366 |   |   | $ | 83,204 |   |

----

|   |                                                             |   | 2009   |     |   | 2008   |   |
|--------|------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
|   | Long-term debt                                                   |   | $      | 159,723  |   |   | $      | 197,651 |   |
|   | Current liabilities                                              |   |   | 217,563  |   |   |   | 250,275 |   |
|   | Current assets                                                   |   |   | (256,886 | )      |   |   | (240,173 | ) |
|   | Net debt [1]                                                     |   | $      | 120,400  |   |   | $      | 207,753 |   |
|   | Cash flows from operating activities                             |   | $      | 230,316  |   |   | $      | 660,135 |   |
|   | Changes in non-cash operating working capital                    |   |   | 76,782   |   |   |   | (96,369 | ) |
|   | Asset retirement costs incurred                                  |   |   | 10,139   |   |   |   | 10,200 |   |
|   | Fund flows from operations [2]                                   |   | $      | 317,237  |   |   | $      | 573,966 |   |
|   | Ratio of net debt to fund flows from operations ([1] ÷ [2]) |   |   | 0.4      |   |   |   | 0.4 |   |

|   | Class ofFinancialInstruments | Location onConsolidatedBalance Sheet                                           | AccountingDesignation | Related Incomeor Expense Accounton Statement of Earnings                                                                                                       |   | Carrying Amount andFair Value of Asset (Liability)as at: |     | Fair Value Measurement Hierarchy |
|--------|------------------------------|--------------------------------------------------------------------------------|-----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|----------|----------------------------------|
|   |                         |                                                                           |                  |                                                                                                                                                           |   | Dec 31, 2009                                             |     |                             | Dec 31, 2008 |   |   |
|   | Cash                         | Cash and cash equivalents                                                      | HFT-B                 | Gains and losses on foreign exchange are included in foreign exchange loss (gain)                                                                              |   | $                                                        | 99,066   |                             |   | $ | 67,231 |   | Level 1 |
|   | Short-term investments       | Short-term investments                                                         | HFT-A                 | Gains and losses on foreign exchange are included in foreign exchange loss (gain)                                                                              |   | $                                                        | 15,895   |                             |   | $ | 9,491 |   | Level 1 |
|   | Receivables                  | Accounts receivable                                                            | LAR                   | Gains and losses on foreign exchange are included in foreign exchange loss (gain).  Impairments are recognized as general and administration expense |   | $                                                        | 117,051  |                             |   | $ | 123,794 |   | Not applicable |
|   | Derivative assets            | Derivative instruments                                                         | HFT-B                 | Loss (gain) on derivative instruments                                                                                                                          |   | $                                                        | 16,113   |                             |   | $ | 15,204 |   | Level 2 |
|   | Derivative liabilities       | Derivative instruments                                                         | HFT-B                 | Loss (gain) on derivative instruments                                                                                                                          |   | $                                                        | (1,772   | )                                |   | $ | - |   | Level 2 |
|   | Reclamation fundinvestments  | Reclamation fund                                                               | HFT-A                 | Other income or expense                                                                                                                                   |   | $                                                        | 69,003   |                             |   | $ | 63,399 |   | Level 1 |
|   | Portfolio investments        | Long-term investments 1                                                        | HFT-A                 | Other income or expense                                                                                                                                        |   | $                                                        | 4,342    |                             |   | $ | 4,579 |   | Level 1 |
|   | Payables                     | Accounts payable and accrued liabilities. Distributions payable to unitholders | OTH                   | Gains and losses on foreign exchange are included in foreign exchange loss (gain)                                                                              |   | $                                                        | (212,742 | )                                |   | $ | (192,652 | ) | Not applicable |
|   | Long-term debt               | Long-term debt                                                                 | OTH                   | Interest                                                                                                                                                       |   | $                                                        | (159,723 | )                                |   | $ | (197,651 | ) | Not applicable |
|   | Long-term debt               | Amount due pursuant to acquisition                                             | OTH                   | None                                                                                                                                                           |   | $                                                        | (111,402 | )                                |   |   | - |   | Not applicable |

----

----

----

|   |                                 |   |           |    |   | Later than one      |   |   | Later than three     |   |   | Later than one     |   |
|--------|--------------------------------------|--------|----------------|---------|--------|---------------------|--------|--------|----------------------|--------|--------|--------------------|--------|
|   |                                 |   | Not later      |    |   | month and not later |   |   | months and not later |   |   | year and not later |   |
|   | Due in (from balance sheet date)     |   | than one month |    |   | than three months   |   |   | than one year        |   |   | than five years    |   |
|   | December 31, 2009:                   |   |           |    |   |                |   |   |                 |   |   |               |   |
|   | Non-derivative financial liabilities |   |           | 117,911 |   |                |   | 84,911 |                 |   |   | 9,920              |   |   |   | 302,691 |   |
|   | December 31, 2008:                   |   |           |    |   |                |   |   |                 |   |   |               |   |   |   |   |   |
|   | Non-derivative financial liabilities |   |           | 123,718 |   |                |   | 63,805 |                 |   |   | 5,129              |   |   |   | 197,651 |   |

|   |  Risk                             |  Description of change in risk variable                                                                                                                                                                                                                                                                                                   | Effect on net earnings before  tax increase (decrease) |
|--------|----------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------|
|   | Currency risk – Euro to Canadian | Increase in strength of the Canadian dollar against the Euro by 5% over the relevant closing rates on December 31, 2009.Decrease in strength of the Canadian dollar against the Euro by 5% over the relevant closing rates on December 31, 2009.                                                                                               | $ $                                                         | (3,283) 3,283 |
|   |                                   |                                                                                                                                                                                                                                                                                                                                           |                                                             |   |
|   | Currency risk – US $ to Canadian | Increase in strength of the Canadian dollar against the US $ by 5% over the relevant closing rates on December 31, 2009.Decrease in strength of the Canadian dollar against  the US $ by 5% over the relevant closing rates on December 31, 2009.                                                                                    | $ $                                                         | 1,495 (1,495) |
|   |                                   |                                                                                                                                                                                                                                                                                                                                           |                                                             |   |
|   | Currency risk – AUD to Canadian  | Increase in strength of the Canadian dollar against the AUD $ by 5% over the relevant closing rates on December 31, 2009.Decrease in strength of the Canadian dollar against the AUD $ by 5% over the relevant closing rates on December 31, 2009.                                                                                             | $ $                                                         | (1,190) 1,190 |
|   |                                   |                                                                                                                                                                                                                                                                                                                                           |                                                             |   |
|   | Commodity price risk                   | Increase in relevant oil reference price at December 31, 2009 by US $5.00/bbl within option pricing models used to determine the fair value of derivative positions. Decrease in relevant oil reference price at December 31, 2009 by US $5.00/bbl within option pricing models used to determine the fair value of derivative positions. | $  $                                                   | 1,788  (2,264) |

----

|   |  Risk                             |  Description of change in risk variable                                                                                                                                                                                                                                                                                                   | Effect on net earnings before  tax increase (decrease) |
|--------|----------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------|
|   | Currency risk – Euro to Canadian | Increase in strength of the Canadian dollar against the Euro by 10% over the relevant closing rates on December 31, 2008. Decrease in strength of the Canadian dollar against the Euro by 5% over the relevant closing rates on December 31, 2008.                                                                                        | $ $                                                         | (3,527) 1,763 |
|   |                                   |                                                                                                                                                                                                                                                                                                                                           |                                                             |   |
|   | Currency risk – US $ to Canadian | Increase in strength of the Canadian dollar against the US $ by 10% over the relevant closing rates on December 31, 2008. Decrease in strength of the Canadian dollar against  the US $ by 5% over the relevant closing rates on December 31, 2008.                                                                             | $ $                                                         | (5,584) 2,792 |
|   |                                   |                                                                                                                                                                                                                                                                                                                                           |                                                             |   |
|   | Currency risk – AUD to Canadian  | Increase in strength of the Canadian dollar against the AUD $ by 10% over the relevant closing rates on December 31, 2008. Decrease in strength of the Canadian dollar against the AUD $ by 5% over the relevant closing rates on December 31, 2008.                                                                                      | $ $                                                         | (1,234) 617 |
|   |                                   |                                                                                                                                                                                                                                                                                                                                           |                                                             |   |
|   | Commodity price risk                   | Increase in relevant oil reference price at December 31, 2008 by US $5.00/bbl within option pricing models used to determine the fair value of derivative positions. Decrease in relevant oil reference price at December 31, 2008 by US $5.00/bbl within option pricing models used to determine the fair value of derivative positions. | $  $                                                   | 146  (59) |

----

|   |                                                                  |   | 2009   |       |   | 2008   |   |
|--------|-----------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|   | Net earnings and comprehensive income as reported under Canadian GAAP |   | $      | 185,498    |   |   | $      | 229,189 |   |
|   | Differences having the effect of increasing (decreasing) net earnings |   |   |       |   |   |   |   |   |
|   | Unit based compensation (a)                                           |   |   | (10,427    | )      |   |   | (9,715 | ) |
|   | Non-controlling interest adjustment (c)                               |   |   | 17,977     |   |   |   | 22,526 |   |
|   | Depletion, depreciation and accretion (c and d)                       |   |   | (284,736   | )      |   |   | (503,598 | ) |
|   | Equity method accounting adjustments (e)                              |   |   | (28,626    | )      |   |   | (8 | ) |
|   | Deferred tax consequences of U.S. GAAP adjustments                    |   |   | 73,702     |   |   |   | 144,372 |   |
|   | Net (loss) and comprehensive (loss) under U.S. GAAP                   |   |   | (46,612    | )      |   |   | (117,234 | ) |
|   | Deficit, beginning of year, under U.S. GAAP                           |   |   | (1,377,857 | )      |   |   | (1,697,655 | ) |
|   | Distributions declared (Canadian and U.S. GAAP)                       |   |   | (166,385   | )      |   |   | (158,674 | ) |
|   | Temporary equity adjustment to deficit (b and f)                      |   |   | (519,696   | )      |   |   | 595,706 |   |
|   | Deficit, end of year, under U.S. GAAP                                 |   | $      | (2,110,550 | )      |   | $      | (1,377,857 | ) |
|   | Net (loss) per trust unit under U.S. GAAP                             |   |   |       |   |   |   |   |   |
|   | Basic                                                                 |   | $      | (0.58      | )      |   | $      | (1.53 | ) |
|   | Diluted                                                               |   | $      | (0.58      | )      |   | $      | (1.53 | ) |
|   | Weighted average trust units outstanding                              |   |   |       |   |   |   |   |   |
|   | Basic (c)                                                             |   |   | 79,685,037 |   |   |   | 76,656,385 |   |
|   | Diluted (c)                                                           |   |   | 79,685,037 |   |   |   | 76,656,385 |   |

|   | CONSOLIDATED BALANCE SHEETS |   | 2009     |      |   | 2009      |   |      | 2008     |   |   | 2008      |   |
|--------|-----------------------------|--------|----------|-----------|--------|-----------|--------|-----------|----------|--------|--------|-----------|--------|
|   |                        |   | CDN GAAP |      |   | U.S. GAAP |   |      | CDN GAAP |   |   | U.S. GAAP |   |
|   | ASSETS                      |   |     |      |   |      |   |      |     |   |   |      |   |
|   | Current                     |   |     |      |   |      |   |      |     |   |   |      |   |
|   | Cash and cash equivalents   |   | $        | 99,066    |   |      | $      | 99,066    |     |   | $      | 67,231    |   |   | $ | 67,231 |   |
|   | Short-term investments      |   |     | 15,895    |   |      |   | 15,895    |     |   |   | 9,491     |   |   |   | 9,491 |   |
|   | Accounts receivable         |   |     | 117,051   |   |      |   | 117,051   |     |   |   | 123,794   |   |   |   | 123,794 |   |
|   | Crude oil inventory         |   |     | 5,235     |   |      |   | 5,235     |     |   |   | 12,167    |   |   |   | 12,167 |   |
|   | Derivative instruments      |   |     | 8,217     |   |      |   | 8,217     |     |   |   | 11,638    |   |   |   | 11,638 |   |
|   | Prepaid expenses and other  |   |     | 11,422    |   |      |   | 11,422    |     |   |   | 15,852    |   |   |   | 15,852 |   |
|   |                        |   |     | 256,886   |   |      |   | 256,886   |     |   |   | 240,173   |   |   |   | 240,173 |   |
|   | Derivative instruments      |   |     | 7,896     |   |      |   | 7,896     |     |   |   | 3,566     |   |   |   | 3,566 |   |
|   | Future income taxes         |   |     | 119,714   |   |      |   | 297,132   |     |   |   | -         |   |   |   | - |   |
|   | Long-term investments (e)   |   |     | 4,342     |   |      |   | 4,342     |     |   |   | 63,752    |   |   |   | 92,378 |   |
|   | Goodwill                    |   |     | 19,840    |   |      |   | 19,840    |     |   |   | 19,840    |   |   |   | 19,840 |   |
|   | Reclamation fund            |   |     | 69,003    |   |      |   | 69,003    |     |   |   | 63,399    |   |   |   | 63,399 |   |
|   | Capital assets (c and d)    |   |     | 1,606,995 |   |      |   | 780,868   |     |   |   | 1,407,629 |   |   |   | 869,403 |   |
|   |                        |   | $        | 2,084,676 |   |      | $      | 1,435,967 |     |   | $      | 1,798,359 |   |   | $ | 1,288,759 |   |

----

|   | CONSOLIDATED BALANCE SHEETS (Continued)           |   | 2009     |      |   | 2009      |   |       | 2008     |   |   | 2008      |   |
|--------|---------------------------------------------------|--------|----------|-----------|--------|-----------|--------|------------|----------|--------|--------|-----------|--------|
|   |                                              |   | CDN GAAP |      |   | U.S. GAAP |   |       | CDN GAAP |   |   | U.S. GAAP |   |
|   | LIABILITIES                                       |   |     |      |   |      |   |       |     |   |   |      |   |
|   | Current                                           |   |     |      |   |      |   |       |     |   |   |      |   |
|   | Accounts payable and accrued liabilities          |   | $        | 197,633   |   |      | $      | 197,633    |     |   | $      | 179,312   |   |   | $ | 179,312 |   |
|   | Unit based compensation liability (a)             |   |     | -         |   |      |   | 23,772     |     |   |   | -         |   |   |   | 17,756 |   |
|   | Distributions payable to unitholders              |   |     | 15,109    |   |      |   | 15,109     |     |   |   | 13,340    |   |   |   | 13,340 |   |
|   | Derivative instruments                            |   |     | 1,772     |   |      |   | 1,772      |     |   |   | -         |   |   |   | - |   |
|   | Income taxes payable                              |   |     | 2,366     |   |      |   | 2,366      |     |   |   | 57,623    |   |   |   | 57,623 |   |
|   | Future income taxes                               |   |     | 683       |   |      |   | 683        |     |   |   | -         |   |   |   | - |   |
|   |                                              |   |     | 217,563   |   |      |   | 241,335    |     |   |   | 250,275   |   |   |   | 268,031 |   |
|   | Long-term debt                                    |   |     | 159,723   |   |      |   | 159,723    |     |   |   | 197,651   |   |   |   | 197,651 |   |
|   | Amount due pursuant to acquisition                |   |     | 111,402   |   |      |   | 111,402    |     |   |   | -         |   |   |   | - |   |
|   | Asset retirement obligations                      |   |     | 237,110   |   |      |   | 237,110    |     |   |   | 265,101   |   |   |   | 265,101 |   |
|   | Unit based compensation liability (a)             |   |     | -         |   |      |   | 9,737      |     |   |   | -         |   |   |   | 9,210 |   |
|   | Future income taxes                               |   |     | 218,764   |   |      |   | 174,586    |     |   |   | 245,799   |   |   |   | 98,698 |   |
|   |                                              |   |     | 944,562   |   |      |   | 933,893    |     |   |   | 958,826   |   |   |   | 838,691 |   |
|   | Non-controlling interest - exchangeableshares (c) |   |     | 100,824   |   |      |   | -          |     |   |   | 84,523    |   |   |   | - |   |
|   | Temporary equity (a, b and c)                     |   |     | -         |   |      |   | 2,612,624  |     |   |   | -         |   |   |   | 1,827,925 |   |
|   |                                              |   |     |      |   |      |   |       |     |   |   |      |   |   |   |   |   |
|   | UNITHOLDERS’ EQUITY                         |   |     |      |   |      |   |       |     |   |   |      |   |   |   |   |   |
|   | Unitholders’ capital (b)                    |   |     | 711,667   |   |      |   | -          |     |   |   | 444,353   |   |   |   | - |   |
|   | Contributed surplus                               |   |     | 30,413    |   |      |   | -          |     |   |   | 29,698    |   |   |   | - |   |
|   | Retained earnings (deficit)                       |   |     | 297,210   |   |      |   | (2,110,550 | )        |   |   | 280,959   |   |   |   | (1,377,857 | ) |
|   |                                              |   |     | 1,039,290 |   |      |   | (2,110,550 | )        |   |   | 755,010   |   |   |   | (1,377,857 | ) |
|   |                                              |   | $        | 2,084,676 |   |      | $      | 1,435,967  |     |   | $      | 1,798,359 |   |   | $ | 1,288,759 |   |

|   | a) | Unit based compensation |
|--------|----|-------------------------|

|   | Under U.S. GAAP, the Trust’s unit based compensation plans are accounted for as liability plans whereas under Canadian GAAP the plans are considered equity plans.  Under equity plan accounting, a fair value is determined for a unit based compensation award at the date of grant.  Liability plan accounting requires that the fair value associated with a unit based award be remeasured at each reporting date until settlement with the corresponding changes in fair value reflected in net earnings. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In the case of unit rights incentive plan awards, the Trust considers that settlement has occurred after the employee has been subject to the risks and rewards of trust unit ownership for a reasonable period of time after the unit right has been exercised.  For trust unit awards, settlement is considered to have occurred after the employee has been subject to the risks and rewards of trust unit ownership for a reasonable period of time after the trust unit has vested.  For both types of awards, the fair value of the award is reclassified to temporary equity upon settlement. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | All remaining unit rights incentive plan awards were exercised in 2009 and accordingly, the fair value of the remaining liability associated with these awards was calculated using the intrinsic value method. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The fair value of trust unit awards was determined using a Monte Carlo simulation model integrating historical market performance data in relation to the Trust and certain peer entities and incorporating management’s estimates as follows: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                             |   | 2009   |   |   | 2008   |   |
|--------|----------------------------------|--------|--------|--------|--------|--------|--------|
|   | Risk free interest rate          |   |   | 1.43   | %      |   |   | 1.21 | % |
|   | Estimated annual forfeiture rate |   |   | 13.26  | %      |   |   | 7.75 | % |

----

|   | b) | Temporary equity |
|--------|----|------------------|

|   | As trust units are redeemable on demand for cash and as exchangeable shares can only be redeemed for trust units under the terms of the Trust Indenture, U.S. GAAP requires that trust units and exchangeable shares be carried at their redemption value outside of permanent equity.  Changes in the redemption value are reflected as adjustments to retained earnings.  Under Canadian GAAP, the trust units are considered permanent equity. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Non-controlling interest adjustment |
|--------|----|-------------------------------------|

|   | Under Canadian GAAP, exchangeable shares are classified as non-controlling interest to reflect a minority ownership in a subsidiary of the Trust.  As these exchangeable shares will ultimately be converted into trust units (see Note 10), they are classified as temporary equity under U.S. GAAP.  Accordingly, non-controlling interest net income as recorded under Canadian GAAP is eliminated.  Increases to capital assets recorded during the year ended December 31, 2009 of $3.2 million (2008 - $14.8 million) related to the conversion of exchangeable shares, as well as the related future income taxes and depletion and depreciation effects, have been eliminated. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Under U.S. GAAP, the exchangeable shares are included in the calculation of basic weighted average trust units outstanding whereas under Canadian GAAP they are only incorporated into diluted weighted average trust units outstanding. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | Ceiling test |
|--------|----|--------------|

|   | Under U.S. GAAP full cost accounting, the carrying value of petroleum and natural gas properties and related facilities, net of deferred income taxes, is limited to the present value of after tax future net revenue from proven reserves, discounted at 10% (based on the average of the first of the month price for the 12-month period prior to the balance sheet date), plus the cost of properties not being amortized (for example, major development projects) net of the income tax effects related to the difference between book and tax basis.  Under Canadian GAAP, an impairment loss occurs when the carrying amount of the Trust’s property, plant and equipment exceeds the estimated undiscounted future net cash flows associated with the Trust’s proved reserves.  If an impairment loss is determined to have occurred, the costs carried on the balance sheet in excess of the discounted future net cash flows associated with the Trust’s proved and probable reserves are charged to income.  The application of the impairment test under U.S. GAAP at December 31, 2009 resulted in a writedown of capitalized costs of $363.2 million on a before-tax basis which is reflected as additional depletion expense.  The application of the impairment test under U.S. GAAP at December 31, 2008 resulted in a writedown of capitalized costs of $504.6 million on a before-tax basis. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | Equity method accounting adjustments |
|--------|----|--------------------------------------|

|   | On December 21, 2009, Vermilion completed the sale of its 18.8 million shares of Verenex at $7.29 per share resulting in net proceeds to the Trust of $136.5 million.  The gain associated with this sale transaction was $80.5 million under Canadian GAAP.  Due to differences in the carrying value of its investment in Verenex related to previous dilutions gains and historical depletion adjustments, the gain associated with this sale was $51.8 million under U.S. GAAP. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f) | Repurchase of units |
|--------|----|---------------------|

|   | During the year ended December 31, 2008 the Trust acquired and then cancelled 45,600 of its own units pursuant to a normal course issuer bid.  Under Canadian GAAP, an adjustment to retained earnings is required to reflect the difference between the consideration paid by the Trust and the book value of the related trust units.  As the trust units are reflected as temporary equity under U.S. GAAP and are carried at the redemption value, there was no difference between the book value of the trust units acquired and the consideration paid by the Trust and accordingly no retained earnings adjustment was required under U.S. GAAP. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | g) | Effect on statements of cash flows |
|--------|----|------------------------------------|

|   | The Trust presents a subtotal before changes in non-cash operating working capital and asset retirement costs incurred in the consolidated statement of cash flows. This subtotal would not be presented in a cash flow statement prepared in accordance with U.S. GAAP. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h) | Recently adopted U.S. Accounting Standards |
|--------|----|--------------------------------------------|

| ·   | In June 2009, the Financial Accounting Standards Board (“FASB”) issued authoritative accounting guidance which established the FASB Accounting Standards Codification (“Codification” or “ASC”) as the source of authoritative accounting principles recognized by the FASB to be applied by non-governmental entities.  All guidance contained in the Codification carries an equal level of authority. The authoritative accounting guidance recognized that rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under federal securities laws are also sources of authoritative GAAP for SEC registrants. The Trust adopted the provisions of the authoritative accounting guidance on July 1, 2009.  The adoption did not have a material impact on the Trust’s consolidated financial statements. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On January 1, 2009 the Trust adopted FASB ASC 805, “Business Combinations”. ASC 805 establishes principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree.  ASC 805 also provides guidance for recognizing and measuring the goodwill acquired in the business combination and determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. ASC 805 also provides guidance for recognizing changes in an acquirer’s existing income tax valuation allowances and tax uncertainty accruals that result from a business combination transaction as adjustments to income tax expense. ASC 805 had no material impact on the Trust’s consolidated financial statements as the Trust did not enter into any business combinations during the year. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In April 2009, the FASB issued updated guidance related to business combinations, which is included in ASC 805-20, Business Combinations, “Identifiable Assets, Liabilities and Any Non-controlling Interest”.  ASC 805-20 amends and clarifies ASC 805 to address application issues regarding initial recognition and measurement, subsequent measurement and accounting and disclosure of assets and liabilities arising from contingencies in a business combination. In circumstances where the acquisition date fair value for a contingency cannot be determined during the measurement period and it is concluded that it is probable that an asset or liability exists as of the acquisition date and the amount can be reasonably estimated, a contingency is recognized as of the acquisition date based on the estimated amount. ASC 805-20 became effective for the Trust on January 1, 2009.  ASC 805-20 had no material impact on the Trust’s consolidated financial statements as the Trust did not enter into any business combinations during the year. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Effective January 1, 2009 the Trust prospectively adopted the new reserve requirements that arose from the completion of the SEC’s project, “Modernization of Oil and Gas Reporting”.  The new rules include provisions that permit the use of new technologies to establish proved reserves if those technologies have been demonstrated empirically to lead to reliable conclusions about reserves volumes.  Additionally, oil and gas reserves are reported using an average price based upon the prior 12-month period rather than year-end prices.  The new rules affect the reserve estimate used in the calculation of DD&A and the ceiling test for U.S. GAAP purposes. The application of the ceiling test under U.S. GAAP at December 31, 2009 utilizing these revised requirements resulted in a writedown of capitalized costs (See note (d), above). |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | On January 1, 2009 the Trust adopted FASB ASC 810-10-65, “Transition Related to FASB Statements No. 160, Non-controlling Interests in Consolidated Financial Statements—an amendment of ARB No. 51, and No. 164, Not-for-Profit Entities: Mergers and Acquisitions” which establishes accounting and reporting standards that require the ownership interest in subsidiaries held by parties other than the parent be clearly identified and presented in the consolidated balance sheets within equity, but separate from the parent's equity; the amount of consolidated net income attributable to the parent and the non-controlling interest be clearly identified and presented on the face of the consolidated statement of earnings; and changes in a parent's ownership interest while the parent retains its controlling financial interest in its subsidiary be accounted for consistently. The adoption of this standard did not have a material impact on the Trust’s consolidated financial statements. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In 2009, the Trust adopted FASB ASC 855, “Subsequent Events”.  ASC 855 establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or available to be issued. The adoption of ASC 855 did not have a material impact on the Trust’s consolidated financial statements. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i) | Recently issued U.S. Accounting Standards |
|--------|----|-------------------------------------------|

| ·   | On June 12 2009, the FASB issued SFAS 167 “Amendments to FASB Interpretation No. 46(R)”.  The statement amends the consolidation guidance that applies to variable interest entities, which is effective for fiscal years beginning after November 15, 2009.  The amendments will significantly affect the overall consolidation analysis under ASC 810-10.  The new guidance requires revised evaluations of whether entities represent variable interest entities, ongoing assessments of control over such entities, and additional disclosures for variable interests. The Trust is assessing the impact these new rules will have on its consolidated financial statements. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In February 2010, the FASB issued Accounting Standards Update (“ASU”) 2010-09 “Subsequent Events (Topic 855)”.  This ASU defines the term “SEC filer” and requires that SEC filers evaluate subsequent events through the date the financial statements are issued.  The Trust does not anticipate that this ASU will have a material impact on its consolidated financial statements. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| DIRECTORS Larry J. Macdonald 1, 2, 3, 4, 5Chairman & CEO, Point Energy Ltd.Calgary, Alberta W. Kenneth Davidson 2, 3Toronto, Ontario Lorenzo DonadeoCalgary, Alberta Claudio A. Ghersinich 2, 4, 5Executive Director, Carrera Investments Corp.Calgary, Alberta Joseph F. Killi 2, 3Chairman,Parkbridge Lifestyle Communities Inc.Vice Chairman, Realex Properties Corp.Calgary, Alberta William F. Madison 2, 4, 5Sugar Land, Texas Timothy R. Marchant 3, 4, 5Calgary, Alberta 1           Chairman of the Board2           Audit Committee3           Governance and Human Resources Committee4           Health, Safety and Environment Committee5           Independent Reserves Committee ANNUAL GENERAL MEETING May 7, 2010 at 10:00 a.m.The BallroomMetropolitan Centre333 – 4th Avenue S.W.Calgary, Alberta | OFFICERS AND KEY PERSONNEL CANADALorenzo Donadeo, P.Eng.President & Chief Executive Officer John D. Donovan, F.C.A.Executive Vice President Business Development Curtis W. Hicks, C.A.Executive Vice President & CFO G. R. (Bob) Mac Dougall, P.Eng.Executive Vice President & COO Paul L. BeiqueVice President Capital Markets Mona Jasinski, M.B.A., C.H.R.P.Vice President People Raj C. Patel, P.Eng.Vice President Marketing Daniel Goulet, P.Eng.Director Production and Operations Cameron A. Hercus, MScDirector Exploitation and New Growth Dean N. Morrison, CFADirector Investor Relations Robert (Bob) J. Engbloom, LL.BCorporate Secretary EUROPEPeter Sider, P.Eng.Vice President European Operations David Burghardt, P.Eng.Director Exploitation Scott Ferguson, P.Eng.Director European Operations AUSTRALIABruce D. Lake, P.Eng.Managing DirectorVermilion Oil & Gas Australia Pty Ltd.   | AUDITORSDeloitte & Touche LLPCalgary, Alberta BANKERSThe Toronto-Dominion BankCalgary, Alberta Bank of MontrealCalgary, Alberta BNP Paribas (Canada)Toronto, Ontario Royal Bank of CanadaCalgary, Alberta The Bank of Nova ScotiaCalgary, Alberta Alberta Treasury BranchesCalgary, Alberta Canadian Imperial Bank of CommerceCalgary, Alberta Citibank N.A., Canadian BranchCalgary, Alberta EVALUATION ENGINEERSGLJ Petroleum Consultants Ltd.Calgary, Alberta LEGAL COUNSELMacleod Dixon LLPCalgary, Alberta TRANSFER AGENTComputershare Trust Company of Canada STOCK EXCHANGE LISTINGThe Toronto Stock ExchangeSymbol: VET.UN INVESTOR RELATIONS CONTACTPaul L. BeiqueVice President Capital Markets HEAD OFFICE2800, 400 – 4TH Avenue S.W.Calgary, Alberta  T2P 0J4403.269.4884 TEL403.264.6306 FAX1.866.895.8101 TOLL FREEinvestor_relations@vermilionenergy.comwww.vermilionenergy.com |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|