EXHIBIT 99.2










Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2


ABBREVIATIONS



|$M     | thousand dollars                                                                                                                                                                       
|------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|$MM    | million dollars                                                                                                                                                                        
|AECO   | the daily average benchmark price for natural gas at the AECO ‘C’ hub in southeast Alberta                                                                                             
|bbl(s) | barrel(s)                                                                                                                                                                              
|bbls/d | barrels per day                                                                                                                                                                        
|bcf    | billion cubic feet                                                                                                                                                                     
|boe    | barrel of oil equivalent, including: crude oil, natural gas liquids and natural gas (converted on the basis of one boe for six mcf of natural                                          
|gas)   |                                                                                                                                                                                        
|boe/d  | barrel of oil equivalent per day                                                                                                                                                       
|GJ     | gigajoules                                                                                                                                                                             
|HH     | Henry Hub, a reference price paid for natural gas in US dollars at Erath, Louisiana                                                                                                    
|mbbls  | thousand barrels                                                                                                                                                                       
|mboe   | thousand barrel of oil equivalent                                                                                                                                                      
|mcf    | thousand cubic feet                                                                                                                                                                    
|mcf/d  | thousand cubic feet per day                                                                                                                                                            
|mmboe  | million barrel of oil equivalent                                                                                                                                                       
|mmcf   | million cubic feet                                                                                                                                                                     
|mmcf/d | million cubic feet per day                                                                                                                                                             
|MWh    | megawatt hour                                                                                                                                                                          
|NGLs   | natural gas liquids                                                                                                                                                                    
|PRRT   | Petroleum Resource Rent Tax, a profit based tax levied on petroleum projects in Australia                                                                                              
|TTF    | the day-ahead price for natural gas in the Netherlands, quoted in MWh of natural gas, at the Title Transfer Facility Virtual Trading Point operated by Dutch TSO Gas Transport Services
|WTI    | West Texas Intermediate, the reference price paid for crude oil of standard grade in US dollars at Cushing, Oklahoma                                                                   



2


Vermilion Energy Inc.2014 Management's Discussion and Analysis - Exhibit 99.2


DISCLAIMER



Certain statements included or incorporated
by reference in this document may constitute forward looking statements or financial outlooks under applicable securities legislation.
Such forward looking statements or information typically contain statements with words such as "anticipate", "believe",
"expect", "plan", "intend", "estimate", "propose", or similar words suggesting
future outcomes or statements regarding an outlook. Forward looking statements or information in this document may include, but
are not limited to: capital expenditures; business strategies and objectives; operational and financial performance; estimated
reserve quantities and the discounted present value of future net cash flows from such reserves; petroleum and natural gas sales;
future production levels (including the timing thereof) and rates of average annual production growth; estimated contingent resources
and prospective resources; exploration and development plans; acquisition and disposition plans and the timing thereof; operating
and other expenses, including the payment and amount of future dividends; royalty and income tax rates; the timing of regulatory
proceedings and approvals; and the timing of first commercial natural gas and the estimate of Vermilion’s share of the expected
natural gas production from the Corrib field.



Such forward looking statements or information
are based on a number of assumptions all or any of which may prove to be incorrect. In addition to any other assumptions identified
in this document, assumptions have been made regarding, among other things: the ability of Vermilion to obtain equipment, services
and supplies in a timely manner to carry out its activities in Canada and internationally; the ability of Vermilion to market crude
oil, natural gas liquids and natural gas successfully to current and new customers; the timing and costs of pipeline and storage
facility construction and expansion and the ability to secure adequate product transportation; the timely receipt of required regulatory
approvals; the ability of Vermilion to obtain financing on acceptable terms; foreign currency exchange rates and interest rates;
future crude oil, natural gas liquids and natural gas prices; and management’s expectations relating to the timing and results
of exploration and development activities.



Although Vermilion believes that the expectations
reflected in such forward looking statements or information are reasonable, undue reliance should not be placed on forward looking
statements because Vermilion can give no assurance that such expectations will prove to be correct. Financial outlooks are provided
for the purpose of understanding Vermilion’s financial position and business objectives and the information may not be appropriate
for other purposes. Forward looking statements or information are based on current expectations, estimates and projections that
involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Vermilion
and described in the forward looking statements or information. These risks and uncertainties include but are not limited to: the
ability of management to execute its business plan; the risks of the oil and gas industry, both domestically and internationally,
such as operational risks in exploring for, developing and producing crude oil, natural gas liquids and natural gas; risks and
uncertainties involving geology of crude oil, natural gas liquids and natural gas deposits; risks inherent in Vermilion's marketing
operations, including credit risk; the uncertainty of reserves estimates and reserves life and estimates of resources and associated
expenditures; the uncertainty of estimates and projections relating to production and associated expenditures; potential delays
or changes in plans with respect to exploration or development projects; Vermilion's ability to enter into or renew leases on acceptable
terms; fluctuations in crude oil, natural gas liquids and natural gas prices, foreign currency exchange rates and interest rates;
health, safety and environmental risks; uncertainties as to the availability and cost of financing; the ability of Vermilion to
add production and reserves through exploration and development activities; the possibility that government policies or laws may
change or governmental approvals may be delayed or withheld; uncertainty in amounts and timing of royalty payments; risks associated
with existing and potential future law suits and regulatory actions against Vermilion; and other risks and uncertainties described
elsewhere in this document or in Vermilion's other filings with Canadian securities regulatory authorities.



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



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



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



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



3


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2


MANAGEMENT’S DISCUSSION AND ANALYSIS



The following is Management’s Discussion and Analysis (“MD&A”), dated February 27, 2015, of Vermilion Energy
Inc.’s (“Vermilion”, “we”, “our”, “us” or the “Company”) operating
and financial results as at and for the three months and year ended December 31, 2014 compared with the corresponding periods in
the prior year.



This discussion
should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2014 and 2013,
together with the accompanying notes. Additional information relating to Vermilion, including its Annual Information Form, is
available on SEDAR at www.sedar.com or on Vermilion’s website at www.vermilionenergy.com.



The audited consolidated financial statements
for the year ended December 31, 2014 and comparative information have been prepared in Canadian dollars, except where another currency
has been indicated, and in accordance with International Financial Reporting Standards (“IFRS” or, alternatively, “GAAP”)
as issued by the International Accounting Standards Board.



This MD&A includes references to certain
financial measures which do not have standardized meanings prescribed by IFRS. As such, these financial measures are considered
additional GAAP or non-GAAP financial measures and therefore are unlikely to be comparable with similar financial measures presented
by other issuers. These additional GAAP and non-GAAP financial measures include:



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



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



For a full description of these and other
non-GAAP financial measures and a reconciliation of these measures to their most directly comparable GAAP measures, please refer
to “ADDITIONAL AND NON-GAAP FINANCIAL MEASURES”.



VERMILION’S BUSINESS



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



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



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

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

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

| | · | Germany business unit: Relates to our 25%
contractual participation interest in a four-partner consortium in Germany.
| | - | ---------------------------------------------------------------------------------------------------------------------

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

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

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

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





4


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




NEW COUNTRY ENTRIES



In February 2014, we acquired a 25% contractual
participation interest in a four-partner consortium in Germany from GDF Suez S.A. The acquisition enables us to participate in
the exploration and development, production and transportation of natural gas from the assets held by the consortium. The assets
are comprised of four gas producing fields across eleven production licenses and are characterized by a low effective decline rate
of approximately 11% annually. The acquired assets include both exploration and production licenses that comprise a total of 204,000
gross acres, of which 85% is in the exploration license. The acquisition represented Vermilion’s entry into the German exploration
and production business, a producing region with a long history of oil and gas development activity, low political risk, and strong
marketing fundamentals. The acquisition provides us with entry into this sizable market, in the form of free cash flow generating,
low-decline assets with near-term development inventory in addition to longer-term, low-permeability gas prospectivity. Entry into
Germany is in keeping with our European focus, and increases our exposure to the strong fundamentals and pricing of European natural
gas markets. We believe that our conventional and unconventional expertise, coupled with new access to proprietary technical data,
will position us strongly for future development and expansion opportunities in both Germany and the greater European region.



On November 10, 2014, we announced an acquisition
of assets in the Powder River Basin of northeastern Wyoming for $11.1 million. The assets cover approximately 68,000 acres of land
(98% undeveloped) with current working interest production of approximately 200 bbls/d (100% crude oil). The land base includes
53,000 net acres at an average operated working interest of 70% in a promising tight oil project in the Turner Sand at a depth
of approximately 1,500 metres. The acquisition represented a low-cost entry into the prolific Powder River Basin and Vermilion’s
entry into the sizable United States exploration and production market. Looking ahead we see continued opportunity for expansion,
with an active asset market in North America where technology continues to unlock new opportunities for development. We have established
an office in Denver, Colorado as the operating headquarters for our new United States business unit and have hired to staff this
subsidiary.



2014 REVIEW AND 2015 GUIDANCE



We first issued 2014 capital expenditure
guidance of $555 million on November 7, 2013. We subsequently increased our 2014 capital expenditure guidance to $590 million on
March 18, 2014, to reflect an additional $35 million of 2014 development capital expected to be incurred in association with our
acquisition of Elkhorn Resources Inc.



Concurrent with the release of our first
quarter 2014 financial and operating results on May 2, 2014, we further updated our 2014 capital expenditure guidance to $635 million,
reflecting the expected full-year rise in the cost to Vermilion, in Canadian dollar terms, of both actual and anticipated international
capital expenditures as a result of the devaluation of the Canadian dollar against both the U.S. dollar and the Euro, and the addition
of approximately $15 million of anticipated spending associated with drilling activities. We also increased our original production
guidance from 47,500-48,500 boe/d to 48,000-49,000 boe/d.



Based on the continued strength of our operations
during the second quarter of 2014, we further increased our full-year 2014 production and capital expenditure guidance to 48,500-49,500
boe/d and $650 million, respectively. The increase in capital expenditures was attributed to increased Mannville development drilling
and higher than anticipated costs associated with the Duvernay development program.



Concurrent with the release of our third
quarter 2014 financial and operating results on November 10, 2014, we further revised our 2014 full year production guidance from
the previous range of 48,500-49,500 boe/d to a range of 49,000-49,500 boe/d and announced the expectation of achieving production
near the upper end of the range for 2014.



We provided updated 2014 capital expenditure
guidance concurrent with the release of our initial 2015 production and capital expenditure guidance on December 8, 2014. The increase
in 2014 capital expenditures resulted from a shift in capital priorities, previously unplanned spending and foreign exchange movements.



5


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




The following table summarizes our 2014
actual results compared to guidance and our 2015 guidance:



|                         |                   | Date | Capital Expenditures ($MM) | Production (boe/d)
|------------------------ | ----------------- | ---- | -------------------------- | ------------------
|2014 - Guidance          |                   |      |                           
|2014 Guidance            | November 7, 2013  | 555  | 45,000 to 46,000          
|2014 - Guidance Updates  |                   |      |                           
|2014 Guidance - Update   | March 18, 2014    | 590  | 47,500 to 48,500          
|2014 Guidance - Update   | May 2, 2014       | 635  | 48,000 to 49,000          
|2014 Guidance - Update   | July 31, 2014     | 650  | 48,500 to 49,500          
|2014 Guidance - Update   | November 10, 2014 | 650  | 49,000 to 49,500          
|2014 Guidance - Update   | December 8, 2014  | 675  | 49,000 to 49,500          
|2014 - Actual Production |                   |      |                           
|2014 Actual              | February 27, 2015 | 688  | 49,573                    
|2015 - Guidance          |                   |      |                           
|2015 Guidance            | December 8, 2014  | 525  | 55,000 to 57,000          
|2015 Guidance            | February 27, 2015 | 415  | 55,000 to 57,000          



SHAREHOLDER RETURN



Vermilion strives to provide investors with
reliable and growing dividends in addition to sustainable, global production growth. The following table, as of December 31, 2014,
reflects our trailing one, three, and five year performance:



|Total return(1)                                                 | Trailing One Year | Trailing Three Year | Trailing Five Year
|--------------------------------------------------------------- | ----------------- | ------------------- | ------------------
|Dividends per Vermilion share                                   | $2.58             | $7.26               | $11.82            
|Capital appreciation per Vermilion share                        | -$5.35            | $11.63              | $24.58            
|Total return per Vermilion share                                | -4.4%             | 41.6%               | 112.3%            
|Annualized total return per Vermilion share                     | -4.4%             | 12.3%               | 16.2%             
|Annualized total return on the S&P TSX High Income Energy Index | -13.6%            | -3.3%               | 1.3%              



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





6


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




CONSOLIDATED RESULTS OVERVIEW



|                      |                                               | Three
    Months Ended |             | %
    change |  |               | Year
    Ended |  | %
    change
|--------------------- | --------------------------------------------- | ---------------------- | ----------- | ------------ |  | ------------- | -------------- |  | ------------
|                      |                                               | Dec
    31,            | Sep
    30, | Dec
    31,  |  | Q4/14
    vs. | Q4/14
    vs.  |  |             
|                      |                                               | 2014                   | 2014        | 2013         |  | Q3/14         | Q4/13          |  |             
|Production            |                                               |                        |             |              |  |               |                |  |             
|                      | Crude oil (bbls/d)                            | 28,846                 | 29,147      | 26,039       |  | (1%)          | 11%            |  |             
|                      | NGLs (bbls/d)                                 | 2,822                  | 2,354       | 1,761        |  | 20%           | 60%            |  |             
|                      | Natural
    gas (mmcf/d)                      | 107.42                 | 110.52      | 78.96        |  | (3%)          | 36%            |  |             
|                      | Total
    (boe/d)                             | 49,571                 | 49,920      | 40,960       |  | (1%)          | 21%            |  |             
|                      | Build
    (draw) in inventory (mbbl)          | (238)                  | 104         | (10)         |  |               |                |  |             
|Financial
    metrics |                                               |                        |             |              |  |               |                |  |             
|                      | Fund flows from
    operations ($M)           | 185,528                | 197,898     | 163,660      |  | (6%)          | 13%            |  |             
|                      | Per
    share ($/basic share)                 | 1.73                   | 1.85        | 1.61         |  | (6%)          | 7%             |  |             
|                      | Net earnings
    ($M)                         | 58,642                 | 53,903      | 101,510      |  | 9%            | (42%)          |  |             
|                      | Per
    share ($/basic share)                 | 0.55                   | 0.50        | 1.00         |  | 10%           | (45%)          |  |             
|                      | Cash flows from
    operating activities ($M) | 229,146                | 235,010     | 177,003      |  | (2%)          | 29%            |  |             
|                      | Net debt ($M)                                 | 1,265,650              | 1,243,438   | 749,685      |  | 2%            | 69%            |  |             
|                      | Cash dividends
    ($/share)                  | 0.645                  | 0.645       | 0.600        |  | -             | 8%             |  |             
|Activity              |                                               |                        |             |              |  |               |                |  |             
|                      | Capital expenditures
    ($M)                 | 166,243                | 190,033     | 148,478      |  | (13%)         | 12%            |  |             
|                      | Acquisitions
    ($M)                         | 1,652                  | 40,847      | 29,103       |  | (96%)         | (94%)          |  |             
|                      | Gross wells drilled                           | 26.00                  | 26.00       | 21.00        |  |               |                |  |             
|                      | Net
    wells drilled                         | 16.58                  | 20.31       | 16.65        |  |               |                |  |             



Operational review



| | · | Recorded consolidated average production
of 49,571 boe/d during Q4 2014, which was consistent with Q3 2014.
| | - | -----------------------------------------------------------------------------------------------------------

| | · | Increased consolidated average production
for the three months and year ended December 31, 2014 by 21% versus the comparable periods in 2013, primarily due to growth in
Canada, the Netherlands, and incremental production from our acquisitions in Germany, southeast Saskatchewan and the United States.
In Canada, production growth of 38% and 34% for the three months and year ended December 31, 2014, respectively, versus the comparable
periods in 2013, resulted from our continued development of the Cardium and Mannville plays in Alberta coupled with incremental
production from southeast Saskatchewan following our acquisition in April 2014 of Elkhorn Resources Inc. In the Netherlands, production
growth of 8% for the year ended December 31, 2014 versus the comparable period in 2013 resulted from incremental production from
our acquisition in the Netherlands in Q4 2013, increased volumes following completion of the Middenmeer Treatment Centre retrofit
in the latter part of 2013, and ongoing recompletion and production optimization activities. These production increases were partially
offset by decreased production in France due primarily to the temporary shut-in of natural gas production from the Vic Bilh field
for the entirety of 2014.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Activity during the quarter included capital
expenditures totalling $166.2 million, incurred primarily in Canada, France, and Ireland. In Canada, capital expenditures totalling
$85.4 million were 12% lower than the $97.4 million incurred in Q3 2014 and related to the drilling of 15.16 net wells compared
to 16.86 net wells in Q3 2014. In France, capital expenditures of $37.2 million related to workovers, seismic activity, various
facility projects, and the drilling of one (0.5 net) well in the Tamaris field. In Ireland, $20.9 million of capital expenditures
were incurred related to offshore workover and pipeline operations, as well as outfitting the 4.9 km tunnel.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Acquisition expenditures for the quarter
totalling $1.7 million related to crown land sales, primarily in southeast Saskatchewan.
| | - | ---------------------------------------------------------------------------------------------------------------------------------



Financial review



Net earnings

| | · | Net earnings for Q4 2014 were $58.6 million
($0.55/basic share) as compared to $53.9 million ($0.50/basic share) for Q3 2014. Quarter-over-quarter net earnings were relatively
consistent as lower petroleum and natural gas sales (“sales”) and operating income were offset by gains on derivative
instruments (including $17.2 million of unrealized gains due to lower forecasted pricing for 2015 and the impact on the valuation
of our crude oil and natural gas derivative positions).
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Net earnings for the three months and year
ended December 31, 2014 were 42% and 18% lower versus the respective comparable periods in 2013 due to a decrease in realized prices
and foreign exchange losses, partially offset by the aforementioned gains on derivative instruments. For the three months ended
December 31, 2014, revenue decreased by 6% driven by lower commodity prices. Revenue increased by 11% for the year ended December
31, 2014 as the decrease in realized prices was offset by incremental production and a decrease in crude inventory as compared
to the same periods in 2013. Unrealized foreign exchange losses of $4.0 million and $17.6 million for the three months and year
ended December 31, 2014 were the result of the Euro weakening versus the Canadian dollar and the resulting impact on our Euro denominated
financial assets. In addition, both periods were affected by the absence of the $47.4 million impairment recovery recognized in
2013.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




Cash flows from operating activities

| | · | Cash flows from operations decreased 2%
as compared to Q3 2014 as lower sales were offset by higher realized gains on derivative instruments and timing differences pertaining
to working capital.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Cash flow from operations increased by
29% and 12% for the three months and year ended December 31, 2014 compared to the same periods in 2013. For the three months ended
December 31, 2014, the increase primarily related to timing differences pertaining to working capital, partially offset by lower
revenues due to lower commodity prices. For the year ended December 31, 2014, the increase primarily related to increased revenues
driven by incremental production related to our Germany and Saskatchewan acquisitions, partially offset by timing differences pertaining
to working capital.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Fund flows from operations

| | · | Generated fund flows from operations of
$185.5 million during Q4 2014, a decrease of $12.4 million (6%) versus Q3 2014. This quarter-over-quarter decrease was the result
of lower sales partially offset by increased realized derivative gains and decreases in corporate income taxes and general and
administration expenses. Lower sales were driven by weaker commodity pricing coupled with a decrease in Netherlands production,
as production in that country is managed to optimize facility use and regulate declines.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Fund flows from operations increased by
13% and 21% for the three months and year ended December 31, 2014, respectively, versus the comparable periods in 2013. These increases
were primarily the result of increased sales volumes in Canada coupled with incremental production following our Q1 2014 acquisition
in Germany, our Q2 2014 acquisition in southeast Saskatchewan, and a draw in Australia inventory in both periods.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Net debt

| | · | As a result of funding our 2014 acquisitions
in Germany, Canada, and the United States, net debt increased to $1.27 billion or 1.6 times fund flows from operations for the
year ended December 31, 2014.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Dividends

| | · | Declared dividends of $0.215 per common share
per month during 2014, totalling $0.645 per common share for the quarter and $2.58 per common share for the year ended December
31, 2014. Dividends were higher in the 2014 periods versus the comparable periods in 2013 due to our increase in dividends per
share starting with the January 31, 2014 dividend paid on February 18, 2014.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





8


Vermilion Energy Inc.2014 Management's Discussion and Analysis - Exhibit 99.2




COMMODITY
PRICES



|                                            | Three
    Months Ended | %
    change |             |               | Year
    Ended |  | %
    change
|------------------------------------------- | ---------------------- | ------------ | ----------- | ------------- | -------------- |  | ------------
|                                            | Dec
    31,            | Sep
    30,  | Dec
    31, | Q4/14
    vs. | Q4/14
    vs.  |  |             
|                                            | 2014                   | 2014         | 2013        | Q3/14         | Q4/13          |  |             
|Average reference
    prices                |                        |              |             |               |                |  |             
|WTI (US $/bbl)                              | 73.15                  | 97.17        | 97.46       | (25%)         | (25%)          |  |             
|Edmonton Sweet
    index (US $/bbl)         | 66.79                  | 89.24        | 82.53       | (25%)         | (19%)          |  |             
|Dated Brent (US
    $/bbl)                  | 76.27                  | 101.85       | 109.27      | (25%)         | (30%)          |  |             
|AECO ($/GJ)                                 | 3.41                   | 3.81         | 3.35        | (10%)         | 2%             |  |             
|TTF ($/GJ)                                  | 8.69                   | 7.26         | 10.65       | 20%           | (18%)          |  |             
|TTF
    (€/GJ)                              | 6.12                   | 5.04         | 7.45        | 21%           | (18%)          |  |             
|Average foreign
    currency exchange rates |                        |              |             |               |                |  |             
|CDN $/US $                                  | 1.14                   | 1.09         | 1.05        | 5%            | 9%             |  |             
|CDN
    $/Euro                              | 1.42                   | 1.44         | 1.43        | (1%)          | (1%)           |  |             
|Average realized
    prices ($/boe)         |                        |              |             |               |                |  |             
|Canada                                      | 51.27                  | 64.85        | 61.10       | (21%)         | (16%)          |  |             
|France                                      | 79.25                  | 107.99       | 112.84      | (27%)         | (30%)          |  |             
|Netherlands                                 | 52.07                  | 45.73        | 67.88       | 14%           | (23%)          |  |             
|Germany                                     | 49.19                  | 36.43        | -           | 35%           | 100%           |  |             
|Australia                                   | 90.37                  | 119.07       | 124.63      | (24%)         | (27%)          |  |             
|United States                               | 74.08                  | -            | -           | 100%          | 100%           |  |             
|Consolidated                                | 63.79                  | 76.80        | 86.04       | (17%)         | (26%)          |  |             
|Production
    mix (% of production)        |                        |              |             |               |                |  |             
|% priced with
    reference to WTI          | 28%                    | 28%          | 25%         |               |                |  |             
|% priced with
    reference to AECO         | 20%                    | 18%          | 17%         |               |                |  |             
|% priced with
    reference to TTF          | 16%                    | 18%          | 15%         |               |                |  |             
|%
    priced with reference to Dated Brent  | 36%                    | 36%          | 43%         |               |                |  |             



Reference prices



| | · | The growing global surplus of crude oil
put considerable downside pressure on global crude oil prices in the fourth quarter of 2014, with Dated Brent falling 25% quarter-over-quarter
and 9% year-over-year.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | North American crude oil prices were not
immune to the global oversupply situation as both WTI and Edmonton Sweet index declined by 25% quarter-over-quarter and 5% year-over-year.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Natural gas prices at AECO suffered a 10%
quarter-over-quarter decline as weather-driven demand was not sufficient to tighten the fundamental balance; however, on a year-over-year
basis, AECO increased by 42%.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | European natural gas prices recovered from
a weaker summer. Aided by both seasonality and concerns over winter supplies from Russia, TTF saw a 20% quarter-over-quarter gain,
but with ample gas-in-storage and little weather demand during the early stages of the winter season, the TTF price was down 17%
year-over-year.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | A weak crude oil market and general strengthening
of the US dollar saw the Canadian dollar weaken throughout the quarter, but against the Euro, the Canadian dollar was relatively
unchanged.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Realized prices



| | · | Consolidated realized price decreased by
17% for Q4 2014 as compared to Q3 2014 and 26% as compared to Q4 2013. These decreases were primarily the result of weaker crude
oil prices, partially offset by stronger TTF pricing and a weaker Canadian dollar versus the US dollar during Q4 2014 versus the
comparable quarters.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Consolidated realized price for the year
ended December 31, 2014 decreased by 7% as compared to the prior year. This decrease was driven by weaker crude oil and TTF pricing,
partially offset by stronger AECO pricing and a weaker Canadian dollar.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





9


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




FUND FLOWS FROM OPERATIONS



|                                                   | Three
    Months Ended |         |                  | Year
    Ended
|-------------------------------------------------- | ---------------------- | ------- | ---------------- | --------------
|                                                   | Dec
    31, 2014       |         | Sep
    30, 2014 |               
|                                                   | $M                     | $/boe   |                  | $M            
|Petroleum
    and natural gas sales                | 306,073                | 63.79   |                  | 344,688       
|Royalties                                          | (25,963)               | (5.41)  |                  | (29,000)      
|Petroleum
    and natural gas revenues             | 280,110                | 58.38   |                  | 315,688       
|Transportation
    expense                         | (9,489)                | (1.98)  |                  | (10,979)      
|Operating
    expense                              | (59,881)               | (12.48) |                  | (56,227)      
|General
    and administration                     | (13,236)               | (2.76)  |                  | (16,262)      
|PRRT                                               | (13,568)               | (2.83)  |                  | (13,834)      
|Corporate
    income taxes                         | (8,304)                | (1.73)  |                  | (17,454)      
|Interest
    expense                               | (12,943)               | (2.70)  |                  | (12,918)      
|Realized
    gain (loss) on derivative instruments | 22,816                 | 4.76    |                  | 8,837         
|Realized
    foreign exchange (loss) gain          | (179)                  | (0.03)  |                  | 812           
|Realized
    other income                          | 202                    | 0.04    |                  | 235           
|Fund
    flows from operations                     | 185,528                | 38.67   |                  | 197,898       



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



|($M)                                            | Q4/14 vs. Q3/14 | Q4/14 vs. Q4/13 | 2014 vs. 2013
|----------------------------------------------- | --------------- | --------------- | -------------
|Fund flows from operations – Comparative period | 197,898         | 163,660         | 667,526      
|Sales volume variance:                          |                 |                 |              
|Canada                                          | 3,545           | 35,366          | 136,832      
|France                                          | 5,839           | 6,706           | (9,302)      
|Netherlands                                     | (4,524)         | (6,216)         | 11,132       
|Germany                                         | 1,297           | 13,359          | 41,962       
|Australia                                       | 29,803          | 20,345          | (1,564)      
|United States                                   | 1,330           | 1,330           | 1,330        
|Pricing variance on sold volumes:               |                 |                 |              
|WTI                                             | (26,146)        | (20,454)        | (4,007)      
|AECO                                            | (3,758)         | 215             | 22,959       
|Dated Brent                                     | (52,457)        | (61,872)        | (26,662)     
|TTF                                             | 6,456           | (7,814)         | (26,887)     
|Changes in:                                     |                 |                 |              
|Royalties                                       | 3,037           | (8,347)         | (40,064)     
|Transportation                                  | 1,490           | (408)           | (13,437)     
|Operating expense                               | (3,654)         | (11,741)        | (37,264)     
|General and administration                      | 3,026           | 718             | (11,817)     
|PRRT                                            | 266             | 3,605           | (3,775)      
|Corporate income taxes                          | 9,150           | 34,761          | 64,798       
|Interest                                        | (25)            | (2,894)         | (11,472)     
|Realized derivatives                            | 13,979          | 24,116          | 43,794       
|Realized foreign exchange                       | (991)           | 1,115           | 1,045        
|Realized other income                           | (33)            | (22)            | (262)        
|Fund flows from operations – Current Period     | 185,528         | 185,528         | 804,865      



10


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




Fund flows from operations of $185.5 million
during Q4 2014 represented a decrease of $12.4 million (6%) versus Q3 2014. This quarter-over-quarter decrease was the result of
a $38.6 million decrease in sales, partially offset by a $14.0 million increase in hedging proceeds (following weaker commodity
prices during the quarter) and a $9.2 million decrease in corporate income taxes. The decrease in sales included $75.9 million
of pricing variance primarily due to a decrease in crude oil prices, partially offset by $37.3 million of sales volume variance
primarily due to higher volumes in Australia (due to inventory draws in the period). The decrease in corporate income taxes was
due to lower taxable income resulting from decreased sales.



On a year-over-year basis, fund flows from
operations increased 13% and 21% for the three months and year ended December 31, 2014, respectively, versus the comparable periods
in 2013. These increases were primarily the result of favorable sales volume variances in Canada coupled with incremental production
following our Q1 2014 acquisition in Germany. The impact of increased AECO pricing, hedging proceeds and lower income taxes also
contributed favorably to fund flows from operations. These favorable increases were partially offset by weaker crude oil and TTF
pricing.



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





11


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




CANADA BUSINESS UNIT



Overview

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

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

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

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

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

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



Operational review



|                                |                               | Three
    Months Ended |             | %
    change |       |               | Year
    Ended |  | %
    change
|------------------------------- | ----------------------------- | ---------------------- | ----------- | ------------ | ----- | ------------- | -------------- |  | ------------
|                                |                               | Dec
    31,            | Sep
    30, | Dec
    31,  |       | Q4/14
    vs. | Q4/14
    vs.  |  |             
|Canada
    business unit        | 2014                          | 2014                   | 2013        |              | Q3/14 | Q4/13         |                |  | 2014        
|Production                      |                               |                        |             |              |       |               |                |  |             
|                                | Crude
    oil (bbls/d)        | 11,384                 | 11,469      | 8,719        |       | (1%)          | 31%            |  |             
|                                | NGLs
    (bbls/d)             | 2,741                  | 2,291       | 1,699        |       | 20%           | 61%            |  |             
|                                | Natural
    gas (mmcf/d)      | 58.36                  | 57.07       | 41.43        |       | 2%            | 41%            |  |             
|                                | Total
    (boe/d)             | 23,851                 | 23,272      | 17,322       |       | 2%            | 38%            |  |             
|Production
    mix (% of total) |                               |                        |             |              |       |               |                |  |             
|                                | Crude
    oil                 | 48%                    | 49%         | 50%          |       |               |                |  |             
|                                | NGLs                          | 11%                    | 10%         | 10%          |       |               |                |  |             
|                                | Natural
    gas               | 41%                    | 41%         | 40%          |       |               |                |  |             
|Activity                        |                               |                        |             |              |       |               |                |  |             
|                                | Capital
    expenditures ($M) | 85,442                 | 97,393      | 77,245       |       | (12%)         | 11%            |  |             
|                                | Acquisitions
    ($M)         | 1,671                  | 27,883      | 1,603        |       |               |                |  |             
|                                | Gross
    wells drilled       | 23.00                  | 22.00       | 21.00        |       |               |                |  |             
|                                | Net
    wells drilled         | 15.16                  | 16.86       | 16.65        |       |               |                |  |             



Production

| | · | The year-over-year increase in full year
average production volumes was primarily attributable to strong organic production growth in each of our Cardium light crude oil
resource play and Mannville condensate-rich gas play as well as incremental production volumes from our southeast Saskatchewan
assets acquired in April 2014.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Cardium production averaged more than 10,000
boe/d in Q4 2014 and more than 10,800 boe/d in 2014. The 20% increase in average annual production volumes was driven by better-than-forecasted
production from long-reach wells and improved completion design.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Mannville production averaged more than
4,300 boe/d in Q4 2014, a 17% increase quarter-over-quarter. Full year 2014 production averaged in excess of 3,900 boe/d.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Production from our southeast Saskatchewan
assets averaged approximately 3,000 boe/d in Q4 2014, an increase of 15% over Q3 2014. Full year 2014 production averaged approximately
1,900 boe/d taking into account a closing date for the acquisition of April 29, 2014.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



12


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




Activity review

| | · | Vermilion drilled a total of 18 (13.6 net)
operated wells during Q4 2014 and 53 (44.8 net) operated wells during 2014.
| | - | ----------------------------------------------------------------------------------------------------------------------



Cardium

| | - | We drilled 13 (9.9 net) operated wells and brought 10 (7.0 net) operated wells on production during
Q4 2014. During 2014, we drilled 30 (25.9 net) operated wells and brought 30 (27.0 net) operated wells on production, of which
17 were long-reach wells with horizontal lengths greater than one mile.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | - | Since 2009, we have drilled or participated in 278 (198.8 net) wells.
| | - | ---------------------------------------------------------------------

| | - | Operating netbacks averaged approximately $62.50/boe in 2014.
| | - | -------------------------------------------------------------

| | - | In 2015, we plan to drill or participate in approximately eight (3.0 net) wells and complete, equip
and tie-in an additional 8.2 net wells which were drilled in 2014.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------



Mannville

| | - | During Q4 2014, we drilled four (3.0 net) operated wells and brought three (2.5 net) operated wells
on production. In 2014, we drilled 10 (7.7 net) operated wells and brought eight (6.2 net) operated wells on production.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | - | In 2015, we expect to drill or participate in approximately 28 (16.0 net) wells and complete, equip
and tie-in an additional 1.0 net well which was drilled in 2014.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------



Duvernay

| | - | During the second half of 2014 we drilled two (1.3 net) horizontal wells. One (0.3 net) well was
completed and brought on production during Q3 2014. The second well was completed and brought on production during Q4 2014.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Saskatchewan

| | - | We drilled one (0.7 net) operated Midale well and brought three (2.6 net) operated wells on production
during Q4 2014.
| | - | ----------------------------------------------------------------------------------------------------------------------

| | - | In 2014, we drilled or participated in 12 (10.4 net) Midale wells.
| | - | ------------------------------------------------------------------

| | - | In 2015, we plan to drill or participate in five (4.1 net) wells in Saskatchewan.
| | - | ---------------------------------------------------------------------------------





13


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




Financial review



|                         |                                    | Three Months Ended | % change |           |           | Year Ended |  | % change
|------------------------ | ---------------------------------- | ------------------ | -------- | --------- | --------- | ---------- |  | --------
|Canada business unit     | Dec 31,                            | Sep 30,            | Dec 31,  | Q4/14 vs. | Q4/14 vs. |            |  | Dec 31, 
|($M except as indicated) | 2014                               | 2014               | 2013     | Q3/14     | Q4/13     |            |  | 2014    
|                         | Sales                              | 112,494            | 138,853  | 97,367    | (19%)     | 16%        |  |         
|                         | Royalties                          | (15,626)           | (19,034) | (11,039)  | (18%)     | 42%        |  |         
|                         | Transportation expense             | (3,455)            | (4,048)  | (4,102)   | (15%)     | (16%)      |  |         
|                         | Operating expense                  | (19,315)           | (19,074) | (13,218)  | 1%        | 46%        |  |         
|                         | General and administration         | (2,840)            | (4,523)  | (2,478)   | (37%)     | 15%        |  |         
|                         | Fund flows from operations         | 71,258             | 92,174   | 66,530    | (23%)     | 7%         |  |         
|Netbacks ($/boe)         |                                    |                    |          |           |           |            |  |         
|                         | Sales                              | 51.27              | 64.85    | 61.10     | (21%)     | (16%)      |  |         
|                         | Royalties                          | (7.12)             | (8.89)   | (6.93)    | (20%)     | 3%         |  |         
|                         | Transportation expense             | (1.57)             | (1.89)   | (2.57)    | (17%)     | (39%)      |  |         
|                         | Operating expense                  | (8.80)             | (8.91)   | (8.29)    | (1%)      | 6%         |  |         
|                         | General and administration         | (1.29)             | (2.11)   | (1.60)    | (39%)     | (19%)      |  |         
|                         | Fund flows from operations netback | 32.49              | 43.05    | 41.71     | (25%)     | (22%)      |  |         
|Reference prices         |                                    |                    |          |           |           |            |  |         
|                         | WTI (US $/bbl)                     | 73.15              | 97.17    | 97.46     | (25%)     | (25%)      |  |         
|                         | Edmonton Sweet index (US $/bbl)    | 66.79              | 89.24    | 82.53     | (25%)     | (19%)      |  |         
|                         | Edmonton Sweet index ($/bbl)       | 75.85              | 97.21    | 86.64     | (22%)     | (12%)      |  |         
|                         | AECO ($/GJ)                        | 3.41               | 3.81     | 3.35      | (10%)     | 2%         |  |         



Sales

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

| | · | Sales per boe decreased by 21% quarter-over-quarter
as a result of a 25% decrease in Edmonton Sweet index pricing and a 10% decrease in AECO pricing. This decrease coupled with relatively
consistent production volumes resulted in a 19% decrease in sales.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | On a year-over-year basis, sales per boe
decreased by 16% for the three months ended December 31, 2014 and increased by 5% for the year ended December 31, 2014 versus the
same periods in 2013. Sales increased for the current year periods despite the decline in the Edmonton Sweet index price that occurred
in the latter half of 2014 due to higher production, including incremental production from our Saskatchewan acquisition and production
growth in the Cardium and Mannville resource plays, and higher AECO pricing.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Royalties

| | · | Royalty expense as a percentage of sales
increased to 13.9% and 12.2% for the three months and year ended December 31, 2014 (versus 11.3% and 10.7% for the comparable periods
in 2013). The increase is associated with wells coming off of incentive royalty rates after reaching specified production thresholds,
increased natural gas prices, and slightly higher average royalty rates associated with Vermilion’s Saskatchewan production.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | On a quarter-over-quarter basis, royalties
as a percentage of sales for Q4 2014 was unchanged versus Q3 2014.
| | - | -------------------------------------------------------------------------------------------------------------



Transportation

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

| | · | Transportation expense for Q4 2014 was
lower than Q3 2014 and Q4 2013 as a result of lower crude oil production subject to transportation costs.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Transportation expense increased for 2014
as compared to 2013 due to incremental trucking costs from Vermilion’s Saskatchewan properties, which were acquired in Q2
2014.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Operating expense

| | · | On a per boe basis, operating expenses
were relatively unchanged quarter-over-quarter and year-over-year. In dollar terms, the year-over-year increase is a result of
increased facilities maintenance expenditures and gas processing costs coupled with incremental operating expenses associated with
Vermilion’s Saskatchewan properties.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



General and administration

| | · | Year-over-year, the increase in general and
administration expense is associated with incremental expense associated with the Saskatchewan acquisition and higher staffing
levels. The quarter-over-quarter decrease relates to the timing of
expenditures.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





14


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




FRANCE BUSINESS UNIT



Overview

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

| | · | Largest oil producer in France.
| | - | -------------------------------

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

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



Operational review



|                            |                             | Three Months Ended |         | % change |       |           | Year Ended |  | % change
|--------------------------- | --------------------------- | ------------------ | ------- | -------- | ----- | --------- | ---------- |  | --------
|                            |                             | Dec 31,            | Sep 30, | Dec 31,  |       | Q4/14 vs. | Q4/14 vs.  |  |         
|France business unit        | 2014                        | 2014               | 2013    |          | Q3/14 | Q4/13     |            |  | 2014    
|Production                  |                             |                    |         |          |       |           |            |  |         
|                            | Crude oil (bbls/d)          | 11,133             | 11,111  | 11,131   |       | -         | -          |  |         
|                            | Natural gas (mmcf/d)        | -                  | -       | -        |       | -         | -          |  |         
|                            | Total (boe/d)               | 11,133             | 11,111  | 11,131   |       | -         | -          |  |         
|Inventory (mbbls)           |                             |                    |         |          |       |           |            |  |         
|                            | Opening crude oil inventory | 214                | 179     | 226      |       |           |            |  |         
|                            | Adjustments                 | -                  | -       | -        |       |           |            |  |         
|                            | Crude oil production        | 1,024              | 1,022   | 1,024    |       |           |            |  |         
|                            | Crude oil sales             | (1,041)            | (987)   | (981)    |       |           |            |  |         
|                            | Closing crude oil inventory | 197                | 214     | 269      |       |           |            |  |         
|Production mix (% of total) |                             |                    |         |          |       |           |            |  |         
|                            | Crude oil                   | 100%               | 100%    | 100%     |       |           |            |  |         
|                            | Natural gas                 | -                  | -       | -        |       |           |            |  |         
|Activity                    |                             |                    |         |          |       |           |            |  |         
|                            | Capital expenditures ($M)   | 37,189             | 35,082  | 31,899   |       | 6%        | 17%        |  |         
|                            | Gross wells drilled         | 1.00               | 3.00    | -        |       |           |            |  |         
|                            | Net wells drilled           | 0.50               | 3.00    | -        |       |           |            |  |         



Production

| | · | Q4 production was essentially flat quarter-over-quarter
and year-over-year. Full year 2014 average production was 4% lower versus full year average production in 2013 due to the shut-in
of produced gas volumes at Vic Bilh.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | In late September 2013, the third party
Lacq processing facility that processed our Vic Bilh gas production was permanently closed. As a result, our Vic Bilh gas production
has been temporarily shut-in while preparations to transfer to an alternative facility are completed. We currently expect a portion
of the Vic Bilh production (approximately 850 mcf/d) will be back on-stream in mid-2015. As a result of the shut-in, current production
volumes remain 100% weighted to Brent-based crude.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Activity review

| | · | Vermilion drilled one (0.5 net) well in
the Tamaris field in the Aquitaine Basin in Q4 2014.
| | - | --------------------------------------------------------------------------------------------

| | · | During Q4 2014, the 160 km2
Champotran 3D seismic project was completed ahead of schedule and under budget. The final processing of the data is expected to
be completed in Q1 2015.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | During 2014, we drilled eight (7.5 net)
wells in France, including the completion of a five-well drilling program in the Champotran field. Additional activities in 2014
included a number of workovers, as well as seismic and facility integrity projects.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | In 2015, we are planning a four-well drilling
program in the Champotran field, an 18-well workover program and the resumption of sales of approximately 850 mcf/d of solution
gas at Vic Bilh.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





15


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




Financial review



|                         |                                    | Three Months Ended |          | % change |           |           | Year Ended |  | % change
|------------------------ | ---------------------------------- | ------------------ | -------- | -------- | --------- | --------- | ---------- |  | --------
|France business unit     | Dec 31,                            | Sep 30,            | Dec 31,  |          | Q4/14 vs. | Q4/14 vs. |            |  | Dec 31, 
|($M except as indicated) | 2014                               | 2014               | 2013     |          | Q3/14     | Q4/13     |            |  | 2014    
|                         | Sales                              | 82,499             | 106,576  | 110,757  |           | (23%)     | (26%)      |  |         
|                         | Royalties                          | (6,319)            | (6,978)  | (6,577)  |           | (9%)      | (4%)       |  |         
|                         | Transportation expense             | (4,096)            | (4,741)  | (4,622)  |           | (14%)     | (11%)      |  |         
|                         | Operating expense                  | (13,544)           | (15,215) | (15,524) |           | (11%)     | (13%)      |  |         
|                         | General and administration         | (3,765)            | (6,411)  | (5,080)  |           | (41%)     | (26%)      |  |         
|                         | Current income taxes               | (6,132)            | (10,744) | (28,024) |           | (43%)     | (78%)      |  |         
|                         | Fund flows from operations         | 48,643             | 62,487   | 50,930   |           | (22%)     | (4%)       |  |         
|Netbacks ($/boe)         |                                    |                    |          |          |           |           |            |  |         
|                         | Sales                              | 79.25              | 107.99   | 112.84   |           | (27%)     | (30%)      |  |         
|                         | Royalties                          | (6.07)             | (7.07)   | (6.70)   |           | (14%)     | (9%)       |  |         
|                         | Transportation expense             | (3.94)             | (4.80)   | (4.71)   |           | (18%)     | (16%)      |  |         
|                         | Operating expense                  | (13.01)            | (15.42)  | (15.82)  |           | (16%)     | (18%)      |  |         
|                         | General and administration         | (3.62)             | (6.50)   | (5.18)   |           | (44%)     | (30%)      |  |         
|                         | Current income taxes               | (5.89)             | (10.89)  | (28.55)  |           | (46%)     | (79%)      |  |         
|                         | Fund flows from operations netback | 46.72              | 63.31    | 51.88    |           | (26%)     | (10%)      |  |         
|Reference prices         |                                    |                    |          |          |           |           |            |  |         
|                         | Dated Brent (US $/bbl)             | 76.27              | 101.85   | 109.27   |           | (25%)     | (30%)      |  |         
|                         | Dated Brent ($/bbl)                | 86.62              | 110.95   | 114.71   |           | (22%)     | (24%)      |  |         



Sales

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

| | · | Sales per boe decreased by 27% quarter-over-quarter,
consistent with the 25% decrease in the Dated Brent reference price. This decrease, partially offset by a decrease in inventory,
resulted in a 23% decrease in sales.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | On a year-over-year basis, sales per boe
decreased by 30% and 1% for the three months and year ended December 31, 2014, respectively, as compared to the same periods in
2013. This decrease was primarily driven by 30% and 9% decreases in the Dated Brent reference price for the three months and year
ended December 31, 2014, respectively. For the three months ended December 31, 2014, this was partially offset by a 6% increase
in sales volumes, resulting in a 26% decrease in sales. On a yearly basis, the decrease in crude pricing coupled with consistent
sales volumes resulted in a 5% decrease in sales.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Royalties

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

| | · | As a percentage of sales, royalties remained
relatively consistent at 6.6% in 2014 (2013 – 6.0%). As a percentage of sales, royalties increased from 6.5% in Q3 2014 to
7.7% in Q4 2014 due to the impact of fixed RCDM royalties coupled with lower realized pricing.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Transportation

| | · | Historically, transportation expense in
France related to shipments of crude oil by tanker from the Aquitaine Basin to third party refineries. As a result of the closure
of the Lacq processing facility in Q3 2013, Vermilion began incurring additional transportation charges to ship Vic Bilh crude
oil production to market. Accordingly, transportation expense for the year ended December 31, 2014 is higher than the prior year.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



16


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




Operating expense

| | · | Operating expense was lower in Q4 2014
as compared to both Q3 2014 and Q4 2013 on both a spend and on a per boe basis due to reduced facilities maintenance and repairs
costs in the current quarter. For the year ended December 31, 2014, operating expense per boe remained consistent with the prior
year.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



General and administration

| | · | General and administration expense for
2014 was 6% higher than in 2013 as a result of increased staffing costs and the weaker Canadian dollar relative to the Euro. On
a quarterly basis, general and administration expense fluctuates as a result of timing of expenditures and allocations from Vermilion’s
Corporate segment.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Current income taxes

| | · | Current income taxes in France are applied
to taxable income after eligible deductions at a statutory rate of 34.4% for 2014.  In addition, a 10.7% temporary surtax
is applicable for tax year 2014 and 2015 if annual revenue exceeds €250 million. The France business unit is not subject to
the 10.7% surtax for 2014.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Current income taxes for the three months
and year ended December 31, 2014 were lower than the comparable periods in 2013 due to accelerated depletion on certain assets
as a result of the impact of the declining Dated Brent reference price.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------







17


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




NETHERLANDS BUSINESS UNIT



Overview

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

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

| | · | Interests include 16 licenses in the northeast
region, five licenses in the central region, and two offshore licenses.
| | - | ----------------------------------------------------------------------------------------------------------------------

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

| | · | High impact natural gas drilling and development.
| | - | -------------------------------------------------

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



Operational review



|                          |                           | Three Months Ended |         | % change |       |           | Year Ended |  | % change
|------------------------- | ------------------------- | ------------------ | ------- | -------- | ----- | --------- | ---------- |  | --------
|                          |                           | Dec 31,            | Sep 30, | Dec 31,  |       | Q4/14 vs. | Q4/14 vs.  |  |         
|Netherlands business unit | 2014                      | 2014               | 2013    |          | Q3/14 | Q4/13     |            |  | 2014    
|Production                |                           |                    |         |          |       |           |            |  |         
|                          | NGLs (bbls/d)             | 81                 | 63      | 62       |       | 29%       | 31%        |  |         
|                          | Natural gas (mmcf/d)      | 31.35              | 38.07   | 37.53    |       | (18%)     | (16%)      |  |         
|                          | Total (boe/d)             | 5,306              | 6,407   | 6,318    |       | (17%)     | (16%)      |  |         
|Activity                  |                           |                    |         |          |       |           |            |  |         
|                          | Capital expenditures ($M) | 10,022             | 10,087  | 15,698   |       | (1%)      | (36%)      |  |         
|                          | Acquisitions ($M)         | -                  | -       | 27,500   |       |           |            |  |         
|                          | Gross wells drilled       | 2.00               | 1.00    | -        |       |           |            |  |         
|                          | Net wells drilled         | 0.92               | 0.45    | -        |       |           |            |  |         



Production

| | · | Achieved record annual production of 6,443
boe/d.
| | - | -------------------------------------------------

| | · | Production was 17% lower quarter-over-quarter
while full year 2014 average production grew 8% versus 2013. Production volumes in 2014 benefited from the addition of production
from the DeHoeve-01 well during Q2 2014 and increased throughput capacity following a retrofit at our Middenmeer Treatment Centre
completed in late 2013.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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



Activity review

| | · | Vermilion drilled the Langezwaag-02 well
(42% working interest), in the Gorredijk concession, during Q4 2014. The primary targets were the Vlieland (Cretaceous sandstone)
and the Zechstein 2 (Permian carbonate) formations. A ten hour clean-up test conducted on the Zechstein 2 formation delivered a
stabilized flow rate of 14 mmcf/d of gas on a 48/64 inch choke with a flowing wellhead pressure of 1,378 psi(1). This
well was drilled from an existing lease site (Langezwaag-01) and is expected to be tied into existing facilities and on production
in Q1 2015.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | The final well of our seven-well 2014 drilling
program, Sonnega-2, was drilled in the Steenwijk concession in Q4 2014. A seven hour clean-up test conducted on the Vlieland formation
delivered a stabilized flow rate of 15.8 mmcf/d on a 52/64 inch choke with a flowing wellhead pressure of 1,059 psi(1).
This well was drilled from an existing lease site and is expected to be tied into existing facilities and on production in Q2 2015.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | In 2015, we are planning a three-well development
drilling program and expect to equip and tie-in four previous discovery wells.
| | - | --------------------------------------------------------------------------------------------------------------------------------



| | (1) | Test results are not necessarily indicative of long-term performance or of ultimate recovery.
| | --- | ---------------------------------------------------------------------------------------------





18


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




Financial review



|                          |                                    | Three Months Ended |         | % change |           |           | Year Ended |  | % change
|------------------------- | ---------------------------------- | ------------------ | ------- | -------- | --------- | --------- | ---------- |  | --------
|Netherlands business unit | Dec 31,                            | Sep 30,            | Dec 31, |          | Q4/14 vs. | Q4/14 vs. |            |  | Dec 31, 
|($M except as indicated)  | 2014                               | 2014               | 2013    |          | Q3/14     | Q4/13     |            |  | 2014    
|                          | Sales                              | 25,420             | 26,960  | 39,451   |           | (6%)      | (36%)      |  |         
|                          | Royalties                          | (1,171)            | (942)   | -        |           | 24%       | 100%       |  |         
|                          | Operating expense                  | (6,200)            | (5,409) | (6,179)  |           | 15%       | -          |  |         
|                          | General and administration         | (2,489)            | (204)   | (1,553)  |           | 1,120%    | 60%        |  |         
|                          | Current income taxes               | 2,124              | (1,189) | (8,267)  |           | (279%)    | (126%)     |  |         
|                          | Fund flows from operations         | 17,684             | 19,216  | 23,452   |           | (8%)      | (25%)      |  |         
|Netbacks ($/boe)          |                                    |                    |         |          |           |           |            |  |         
|                          | Sales                              | 52.07              | 45.73   | 67.88    |           | 14%       | (23%)      |  |         
|                          | Royalties                          | (2.40)             | (1.60)  | -        |           | 50%       | 100%       |  |         
|                          | Operating expense                  | (12.70)            | (9.18)  | (10.63)  |           | 38%       | 19%        |  |         
|                          | General and administration         | (5.10)             | (0.35)  | (2.67)   |           | 1,357%    | 91%        |  |         
|                          | Current income taxes               | 4.35               | (2.02)  | (14.22)  |           | (315%)    | (131%)     |  |         
|                          | Fund flows from operations netback | 36.22              | 32.58   | 40.36    |           | 11%       | (10%)      |  |         
|Reference prices          |                                    |                    |         |          |           |           |            |  |         
|                          | TTF ($/GJ)                         | 8.69               | 7.26    | 10.65    |           | 20%       | (18%)      |  |         
|                          | TTF (€/GJ)                         | 6.12               | 5.04    | 7.45     |           | 21%       | (18%)      |  |         



Sales

| | · | The price of our natural gas in the Netherlands
is based on the TTF day-ahead index, as determined on the Title Transfer Facility Virtual Trading Point operated by Dutch TSO Gas
Transport Services, plus various fees. GasTerra, a state owned entity, continues to purchase all of the natural gas we produce
in the Netherlands.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | The 6% decrease in sales quarter-over-quarter
is primarily related to a 17% decrease in production, partially offset by a 14% increase in sales per boe consistent with the 20%
increase in the Canadian dollar equivalent of the TTF reference price.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | On a year-over-year basis, sales per boe
declined by 23% and 18% for the three months and year ended December 31, 2014, respectively. This was consistent with the decrease
in the TTF reference price over the same periods in 2013. On a quarterly basis, lower pricing coupled with a 16% decrease in production
volumes resulted in a 36% decrease in sales. On a yearly basis, weaker pricing was partially offset by an 8% increase in production
volumes, resulting in an 11% decrease in sales.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Royalties

| | · | Historically, we have not paid royalties
in the Netherlands, however, certain wells associated with an acquisition completed by Vermilion’s Netherlands business unit
in October 2013 have reached payout and are now subject to an overriding royalty.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Transportation expense

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



Operating expense

| | · | Operating expense per boe increased in
Q4 2014 from Q3 2014 as additional project work was performed in Q4 2014.
| | - | ----------------------------------------------------------------------------------------------------------------

| | · | Operating expense per boe for 2014 increased
as compared to the prior year due to the strengthening of the Euro versus the Canadian dollar, as well as higher salary costs associated
with increased staffing levels supporting the continued organic growth in the Netherlands business unit.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



General and administration

| | · | On a year-over-year basis, general and
administration expenses increased as a result of additional staffing and administration costs associated with Vermilion’s
continued organic growth in the Netherlands. In addition, on a quarter-over-quarter basis, Q4 2014 general and administration expenses
were higher than the comparable quarters due to the timing of allocations from Vermilion’s Corporate segment.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Current income taxes

| | · | Current income taxes in the Netherlands apply
to taxable income after eligible deductions at a statutory tax rate of approximately 46%.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------

| | · | Current income taxes decreased for the
year ended December 31, 2014 as compared to the same period in 2013 as a result of decreased revenues from lower TTF reference
prices, and an increase in tax deductions for depletion on two unsuccessful wells during the current year.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | The effective rate is lower compared to
the statutory rate due to accelerated tax deductions from certain capital expenditures and other eligible in-country tax adjustments
resulting from the corporate acquisition completed in Q4 2013.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





19


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




GERMANY BUSINESS UNIT



Overview

| | · | Vermilion entered Germany in February 2014
with the purchase of a 25% participation interest in a four-partner consortium.
| | - | --------------------------------------------------------------------------------------------------------------------------

| | · | The assets include four gas producing fields
across 11 production licenses and an exploration license in surrounding fields.
| | - | ----------------------------------------------------------------------------------------------------------------------------

| | · | Production licenses comprise 207,000 gross
acres, of which 85% is in the exploration license.
| | - | ---------------------------------------------------------------------------------------------



Operational review



|                      |                           | Three Months Ended |         | % change |           |  | Year Ended
|--------------------- | ------------------------- | ------------------ | ------- | -------- | --------- |  | ----------
|                      |                           | Dec 31,            | Sep 30, |          | Q4/14 vs. |  |           
|Germany business unit | 2014                      | 2014               |         | Q3/14    |           |  | 2014      
|Production            |                           |                    |         |          |           |  |           
|                      | Natural gas (mmcf/d)      | 17.71              | 15.38   |          | 15%       |  |           
|                      | Total (boe/d)             | 2,952              | 2,563   |          | 15%       |  |           
|Activity              |                           |                    |         |          |           |  |           
|                      | Capital expenditures ($M) | 563                | 1,358   |          | (59%)     |  |           
|                      | Acquisitions ($M)         | -                  | -       |          |           |  |           



Production

| | · | Achieved Q4 2014 production of 2,952 boe/d,
an increase of 15% as compared to 2,563 boe/d in the prior quarter, largely attributable to the Deblinghausen Z7a well being brought
on production. Full year 2014 production averaged 2,498 boe/d taking into account an effective date for production of February
1, 2014.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Activity review

| | · | During the first quarter of 2014, we participated
in the drilling of the Deblinghausen Z7a development well (25% working interest).
| | - | -----------------------------------------------------------------------------------------------------------------------------------

| | · | Continued the integration of the German
business unit and commenced planning with our working interest partners for future drilling operations.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------

| | · | Hired a Managing Director for the German
business unit and opened an office outside of Berlin.
| | - | ----------------------------------------------------------------------------------------------

| | · | In 2015, we are participating in the Burgmoor
Z3a sidetrack well which spud in Q1 2015.
| | - | ---------------------------------------------------------------------------------------





20


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




Financial review



|                         |                                    | Three Months Ended |         | % change  |        |  | Year Ended
|------------------------ | ---------------------------------- | ------------------ | ------- | --------- | ------ |  | ----------
|Germany business unit    | Dec 31,                            | Sep 30,            |         | Q4/14 vs. |        |  | Dec 31,   
|($M except as indicated) | 2014                               | 2014               |         | Q3/14     |        |  | 2014      
|                         | Sales                              | 13,359             | 8,591   |           | 55%    |  |           
|                         | Royalties                          | (2,481)            | (2,046) |           | 21%    |  |           
|                         | Transportation expense             | (218)              | (675)   |           | (68%)  |  |           
|                         | Operating expense                  | (2,862)            | (2,227) |           | 29%    |  |           
|                         | General and administration         | (2,200)            | (1,090) |           | 102%   |  |           
|                         | Current income taxes               | 1,145              | (146)   |           | (884%) |  |           
|                         | Fund flows from operations         | 6,743              | 2,407   |           | 180%   |  |           
|Netbacks ($/boe)         |                                    |                    |         |           |        |  |           
|                         | Sales                              | 49.19              | 36.43   |           | 35%    |  |           
|                         | Royalties                          | (9.13)             | (8.68)  |           | 5%     |  |           
|                         | Transportation expense             | (0.80)             | (2.86)  |           | (72%)  |  |           
|                         | Operating expense                  | (10.54)            | (9.44)  |           | 12%    |  |           
|                         | General and administration         | (8.10)             | (4.62)  |           | 75%    |  |           
|                         | Current income taxes               | 4.21               | (0.62)  |           | (779%) |  |           
|                         | Fund flows from operations netback | 24.83              | 10.21   |           | 143%   |  |           
|Reference prices         |                                    |                    |         |           |        |  |           
|                         | TTF ($/GJ)                         | 8.69               | 7.26    |           | 20%    |  |           
|                         | TTF (€/GJ)                         | 6.12               | 5.04    |           | 21%    |  |           



Sales

| | · | The price of our natural gas in Germany
is based on the TTF month-ahead index, as determined on the Title Transfer Facility Virtual Trading Point operated by Dutch TSO
Gas Transport Services, plus various fees.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Sales per boe increased by 35% from Q3
2014 due to an increase in the TTF reference price. This increase, coupled with higher production volumes, resulted in a 55% increase
in sales quarter-over-quarter.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Royalties expense

| | · | Our production in Germany is subject to royalties at a rate of approximately
20% of natural gas sales revenue.
| | - | --------------------------------------------------------------------------------------------------------------



Transportation expense

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

| | · | Transportation expense decreased for Q4 2014 as compared to Q3 2014
as a result of prior period adjustments recorded in the current quarter.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------



Operating expense

| | · | Operating expenses for Germany are billed
monthly by the joint venture operator and are similar on a per boe basis to our Netherlands business unit.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------



General and administration

| | · | General and administration expense increased
quarter-over-quarter as a result of increased allocations from Vermilion’s Corporate segment.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------



Current income taxes

| | · | Current income taxes in Germany apply to
taxable income after eligible deductions at a statutory tax rate of approximately 23%.
| | - | -------------------------------------------------------------------------------------------------------------------------------

| | · | Current income taxes for Q4 2014 were lower
compared to Q3 2014 due to the finalization of tax deductions related to the acquisition.
| | - | -------------------------------------------------------------------------------------------------------------------------------------





21


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




IRELAND BUSINESS UNIT



Overview

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

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

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



Operational and financial review



|                      |                            | Three Months Ended |         | % change |           |           | Year Ended |  | % change
|--------------------- | -------------------------- | ------------------ | ------- | -------- | --------- | --------- | ---------- |  | --------
|Ireland business unit | Dec 31,                    | Sep 30,            | Dec 31, |          | Q4/14 vs. | Q4/14 vs. |            |  | Dec 31, 
|($M)                  | 2014                       | 2014               | 2013    |          | Q3/14     | Q4/13     |            |  | 2014    
|                      | Transportation expense     | (1,720)            | (1,515) | (357)    |           | 14%       | 382%       |  |         
|                      | General and administration | (579)              | (334)   | (482)    |           | 73%       | 20%        |  |         
|                      | Fund flows from operations | (2,299)            | (1,849) | (839)    |           | 24%       | 174%       |  |         
|Activity              |                            |                    |         |          |           |           |            |  |         
|                      | Capital expenditures       | 20,932             | 30,050  | 14,472   |           | (30%)     | 45%        |  |         



Activity review

| | · | Our Corrib project in Ireland has continued
to progress on schedule following the completion of tunnel boring operations in May 2014. During the remainder of 2014, project
operator Shell Exploration & Production Ireland Ltd. (SEPIL) successfully completed offshore workover and pipeline operations
as well as outfitting of the 4.9 km tunnel including installation of flow and umbilical lines, hydro-testing and dewatering with
the final weld completed in December. The grouting of the tunnel was completed subsequent to year end 2014. Natural gas from the
sales grid was safely introduced into the processing facility in Q4 2014 as part of the commencement of operations at the plant.
Remaining work includes the testing of all systems and processes required for the safe operation of the Bellanaboy gas processing
terminal and the finalization of operating permits.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Based on the current schedule for remaining
commissioning activities, we anticipate first gas in approximately mid-2015 with peak production of approximately 58 mmcf/d (9,700
boe/d), net to Vermilion.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Transportation expense

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





22


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




AUSTRALIA BUSINESS UNIT



Overview

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

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

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

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

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



Operational review



|                        |                             | Three Months Ended |         | % change |       |           | Year Ended |  | % change
|----------------------- | --------------------------- | ------------------ | ------- | -------- | ----- | --------- | ---------- |  | --------
|                        |                             | Dec 31,            | Sep 30, | Dec 31,  |       | Q4/14 vs. | Q4/14 vs.  |  |         
|Australia business unit | 2014                        | 2014               | 2013    |          | Q3/14 | Q4/13     |            |  | 2014    
|Production              |                             |                    |         |          |       |           |            |  |         
|                        | Crude oil (bbls/d)          | 6,134              | 6,567   | 6,189    |       | (7%)      | (1%)       |  |         
|Inventory (mbbls)       |                             |                    |         |          |       |           |            |  |         
|                        | Opening crude oil inventory | 258                | 189     | 183      |       |           |            |  |         
|                        | Crude oil production        | 564                | 604     | 569      |       |           |            |  |         
|                        | Crude oil sales             | (785)              | (535)   | (622)    |       |           |            |  |         
|                        | Closing crude oil inventory | 37                 | 258     | 130      |       |           |            |  |         
|Activity                |                             |                    |         |          |       |           |            |  |         
|                        | Capital expenditures ($M)   | 11,616             | 15,985  | 8,420    |       | (27%)     | 38%        |  |         
|                        | Gross wells drilled         | -                  | -       | -        |       |           |            |  |         
|                        | Net wells drilled           | -                  | -       | -        |       |           |            |  |         



Production

| | · | Quarterly production decreased 7% quarter-over-quarter.
Full year 2014 production increased 1% versus full year 2013.
| | - | ---------------------------------------------------------------------------------------------------------------------

| | · | Production volumes are managed within corporate targets while meeting
customer demands and the requirements of long-term supply agreements. We continue to plan for production levels of between 6,000
and 8,000 bbls/d.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Activity review

| | · | In Q4 2014, efforts were largely focused
on facilities enhancement and engineering studies, including the expansion of accommodation quarters on the Wandoo B platform,
as well as pre-drill activities for a two-well drilling program that was initially planned for Q1 2015 but which was subsequently
deferred. With the deferral of the drilling program, 2015 planned activities include ongoing facilities maintenance, enhancement,
and refurbishment, as well as preparation and permitting activities in advance of our next drilling program.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





23


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




Financial review



|                         |                                    | Three Months Ended |          | % change |           |           | Year Ended |  | % change
|------------------------ | ---------------------------------- | ------------------ | -------- | -------- | --------- | --------- | ---------- |  | --------
|Australia business unit  | Dec 31,                            | Sep 30,            | Dec 31,  |          | Q4/14 vs. | Q4/14 vs. |            |  | Dec 31, 
|($M except as indicated) | 2014                               | 2014               | 2013     |          | Q3/14     | Q4/13     |            |  | 2014    
|                         | Sales                              | 70,971             | 63,708   | 77,533   |           | 11%       | (8%)       |  |         
|                         | Operating expense                  | (17,719)           | (14,302) | (13,219) |           | 24%       | 34%        |  |         
|                         | General and administration         | (1,628)            | (1,378)  | (1,442)  |           | 18%       | 13%        |  |         
|                         | PRRT                               | (13,568)           | (13,834) | (17,173) |           | (2%)      | (21%)      |  |         
|                         | Corporate income taxes             | (4,799)            | (5,148)  | (6,210)  |           | (7%)      | (23%)      |  |         
|                         | Fund flows from operations         | 33,257             | 29,046   | 39,489   |           | 14%       | (16%)      |  |         
|Netbacks ($/boe)         |                                    |                    |          |          |           |           |            |  |         
|                         | Sales                              | 90.37              | 119.07   | 124.63   |           | (24%)     | (27%)      |  |         
|                         | Operating expense                  | (22.56)            | (26.73)  | (21.25)  |           | (16%)     | 6%         |  |         
|                         | General and administration         | (2.07)             | (2.58)   | (2.32)   |           | (20%)     | (11%)      |  |         
|                         | PRRT                               | (17.28)            | (25.86)  | (27.60)  |           | (33%)     | (37%)      |  |         
|                         | Corporate income taxes             | (6.11)             | (9.62)   | (9.98)   |           | (36%)     | (39%)      |  |         
|                         | Fund flows from operations netback | 42.35              | 54.28    | 63.48    |           | (22%)     | (33%)      |  |         
|Reference prices         |                                    |                    |          |          |           |           |            |  |         
|                         | Dated Brent (US $/bbl)             | 76.27              | 101.85   | 109.27   |           | (25%)     | (30%)      |  |         
|                         | Dated Brent ($/bbl)                | 86.62              | 110.95   | 114.71   |           | (22%)     | (24%)      |  |         



Sales

| | · | Our production in Australia currently receives
a premium to Dated Brent.
| | - | ------------------------------------------------------------------------

| | · | Sales per boe for Q4 2014 decreased by
24% versus Q3 2014 as a result of a decrease in the Dated Brent reference price. This decrease was offset by higher sales volumes,
resulting in an 11% increase in sales.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Sales per boe for the three months and
year ended December 31, 2014 versus the same periods in 2013 reflect the decrease in the Dated Brent reference price by 30% and
9%, respectively, partially offset by the weakening of the Canadian dollar versus the US dollar. On a quarterly basis, this was
partially offset by an increase in sales volumes, resulting in an 8% decrease in sales. On a yearly basis, the weaker pricing was
coupled with consistent sales volumes, resulting in a 5% decrease in sales.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Royalties and transportation expense

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



Operating expense

| | · | On a quarter-over-quarter basis, operating
expense for Q4 2014 was higher than Q3 2014 as a result of a large draw in inventory during the current quarter (221,000 bbls)
versus a build in the previous quarter (69,000 bbls). On a per barrel basis, operating expense decreased quarter-over-quarter as
a result of lower diesel usage in the current quarter.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | On a year-over-year basis, the three months
and year ended December 31, 2014 had higher operating expense on a dollar and barrel basis as a result of increased diesel usage.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------



General and administration

| | · | General and administration expense for
2014 was relatively unchanged versus 2013. The timing of expenditures resulted in variances from quarter-to-quarter.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------



PRRT and corporate income taxes

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

| | · | Combined corporate income taxes and PRRT
movements for the three months and year ended December 31, 2014 versus the comparable periods in 2013 were largely consistent with
the fluctuations in sales. On a year-over-year basis, PRRT for 2014 increased versus the 2013 periods as a result of the lower
capital spending in 2014.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





24


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




UNITED STATES BUSINESS UNIT



Overview

| | · | Entered the United States in September
2014 with $11.1 million acquisition.
| | - | ---------------------------------------------------------------------------

| | · | Interests include approximately 68,000
acres of land (98% undeveloped) in the Powder River Basin of northeastern Wyoming.
| | - | -------------------------------------------------------------------------------------------------------------------------

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



Operational and financial review



|                            |                                    | Three Months Ended
|--------------------------- | ---------------------------------- | ------------------
|United States business unit | Dec 31,                           
|($M except as indicated)    | 2014                              
|                            | Sales                              | 1,330             
|                            | Royalties                          | (366)             
|                            | Operating expense                  | (241)             
|                            | General and administration         | (959)             
|                            | Fund flows from operations         | (236)             
|Netbacks ($/boe)            |                                   
|                            | Sales                              | 74.08             
|                            | Royalties                          | (20.38)           
|                            | Operating Expense                  | (13.44)           
|                            | General and administration         | (53.44)           
|                            | Fund flows from operations netback | (13.18)           
|Production                  |                                   
|                            | Crude oil (bbls/d)                 | 195               
|                            | Total (boe/d)                      | 195               
|Activity                    |                                   
|                            | Capital expenditures               | 460               
|Reference prices            |                                   
|                            | WTI (US $/bbl)                     | 73.15             
|                            | WTI ($/bbl)                        | 83.08             



Activity review

| | · | The most recently completed well on this
land block (70% working interest) is currently producing approximately 150 bbls/d of oil in its seventh month of production, from
an approximately 1,100 metre hydraulically-fractured horizontal lateral.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | We plan to drill one well in the East Finn
prospect in 2015.
| | - | ------------------------------------------------------------



Sales

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



Royalties expense

| | · | Our production in the United States is subject to federal and private
royalties, severance tax, and ad valorem tax at a combined rate of approximately 27.5% of sales.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------



Operating expense

| | · | Operating expense represents costs incurred
by the contract operators of our current wells in the United States.
| | - | ----------------------------------------------------------------------------------------------------------------



General and administration

| | · | General and administration expense for
Q4 2014 relate to the initial costs incurred to establish an office in Denver, Colorado.
| | - | -------------------------------------------------------------------------------------------------------------------------------





25


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




CORPORATE



Overview

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



Financial review



|                                      | Three Months Ended |          |          | Year Ended
|------------------------------------- | ------------------ | -------- | -------- | ----------
|                                      | Dec 31,            | Sep 30,  | Dec 31,  |           
|($M)                                  | 2014               | 2014     | 2013     |           
|General and administration            | 1,224              | (2,322)  | (2,919)  |           
|Current income taxes                  | (642)              | (227)    | (564)    |           
|Interest expense                      | (12,943)           | (12,918) | (10,049) |           
|Realized gain (loss) on derivatives   | 22,816             | 8,837    | (1,300)  |           
|Realized foreign exchange (loss) gain | (179)              | 812      | (1,294)  |           
|Realized other income                 | 202                | 235      | 224      |           
|Fund flows from operations            | 10,478             | (5,583)  | (15,902) |           



General and administration

| | · | The decrease in general and administration
costs in Q4 2014 as compared to Q3 2014 and Q4 2013 is largely due to a decrease in staff-related expenditures, general cost saving
initiatives in response to declining crude prices, and increased salary allocations to the various segments.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | On a year-over-year basis, general and
administration costs for the year ended December 31, 2014 as compared to 2013 remained relatively consistent. The change is primarily
due to cost saving initiatives and increased salary allocations to the various segments, partially offset by certain outstanding
Vermilion Incentive Plan (“VIP”) awards to be settled partially in cash.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Current income taxes

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



Interest expense

| | · | Interest expense is incurred on our senior
unsecured notes and on borrowings under our revolving credit facility. As compared to Q3 2014, Q4 2014 interest expense remained
consistent. The increase in the three months and year ended December 31, 2014 versus the comparable periods in 2013 is due to increased
borrowings under our revolving credit facility.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Hedging

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

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

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

| | · | The realized gain in 2014 related primarily
to amounts received on our TTF and Dated Brent derivatives, partially offset by payments made on our AECO derivatives.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | A listing of derivative positions as at
December 31, 2014 is included in “Supplemental Table 2” in this MD&A.
| | - | -------------------------------------------------------------------------------------------------------------





26


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




FINANCIAL PERFORMANCE REVIEW



|                                |         |  |  |  |  |           | Year Ended
|------------------------------- | ------- |  |  |  |  | --------- | ----------
|                                |         |  |  |  |  |           | Dec 31,   
|($M except per share)           |         |  |  |  |  | 2014      | 2013      
|Total assets                    |         |  |  |  |  | 4,386,091 | 3,708,719 
|Long-term debt                  |         |  |  |  |  | 1,238,080 | 990,024   
|Petroleum and natural gas sales |         |  |  |  |  | 1,419,628 | 1,273,835 
|Net earnings                    |         |  |  |  |  | 269,326   | 327,641   
|Net earnings per share          |         |  |  |  |  |           |           
|                                | Basic   |  |  |  |  |           | 2.55      
|                                | Diluted |  |  |  |  |           | 2.51      
|Cash dividends ($/share)        |         |  |  |  |  | 2.58      | 2.40      



|                                |         | Three Months Ended
|------------------------------- | ------- | ------------------
|                                |         | Dec 31,           
|($M except per share)           | 2014    | 2014              
|Petroleum and natural gas sales | 306,073 | 344,688           
|Net earnings                    | 58,642  | 53,903            
|Net earnings per share          |         |                   
|                                | Basic   | 0.55              
|                                | Diluted | 0.54              



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



|($M)                                              | Q4/14 vs. Q3/14 | Q4/14 vs. Q4/13 | 2014 vs. 2013
|------------------------------------------------- | --------------- | --------------- | -------------
|Net earnings – Comparative period                 | 53,903          | 101,510         | 327,641      
|Changes in:                                       |                 |                 |              
|Fund flows from operations                        | (12,370)        | 21,868          | 137,339      
|Equity based compensation                         | (3,673)         | 2,813           | (6,957)      
|Unrealized gain or loss on derivative instruments | 9,357           | 15,885          | 22,260       
|Unrealized foreign exchange gain or loss          | 7,881           | (26,276)        | (69,627)     
|Unrealized other expense                          | (148)           | (323)           | (41)         
|Accretion                                         | (123)           | 340             | 652          
|Depletion and depreciation                        | (13,022)        | (33,487)        | (103,308)    
|Deferred tax                                      | 16,837          | 23,712          | 8,767        
|Impairment recovery                               | -               | (47,400)        | (47,400)     
|Net earnings – Current Period                     | 58,642          | 58,642          | 269,326      



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



Equity based compensation

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



For the year ended December 31, 2014, equity
based compensation expense was higher than the same period in 2013 as a result of an upward revision of future performance condition
assumptions during Q2 2014. Equity based compensation expense was higher for Q4 2014 as compared to Q3 2014 due to a higher number
of VIP awards outstanding. Equity based compensation expense in Q4 2014 was lower than Q4 2013 as the 2013 period included an upward
revision of future performance condition assumptions.

27


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




Unrealized gain or loss on derivative
instruments

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



In the year ended December 31, 2014, we
recognized an unrealized gain on derivative instruments of $27.4 million, relating primarily to our TTF and crude oil swaps and
collars. As at December 31, 2014, we have a net derivative asset position of $24.8 million.



Unrealized foreign exchange gain or
loss

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



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



For the three months and year ended December
31, 2014, the Canadian dollar strengthened versus the Euro resulting in unrealized foreign exchange losses of $4.0 million and
$17.6 million, respectively.



Accretion

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



Q4 2014 accretion expense was relatively
consistent as compared to Q3 2014 and the comparable periods in 2013.



Depletion and depreciation

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



Depletion and depreciation on a per boe
basis of $24.42 in Q4 2014 was higher as compared to $23.21 in Q3 2014. Depletion and depreciation on a per boe basis increased
for the three months and year ended December 31, 2014 to $24.42/boe and $23.31/boe, respectively, as compared to the same periods
in 2013 of $22.15/boe and $21.22/boe, respectively. The increase on a per boe basis was largely due to Vermilion’s increased
capital and acquisition activity which resulted in higher per boe amounts when compared to legacy producing assets.



Deferred tax

Deferred tax expense arises primarily as
a result of changes in the accounting basis and tax basis for capital assets and asset retirement obligations and changes in available
tax losses.



TAXES



Corporate income tax rates

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



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



|Jurisdiction  | 2014  | 2013 
|------------- | ----- | -----
|Canada        | 25.5% | 25.0%
|France        | 34.4% | 38.0%
|Netherlands   | 46.0% | 46.0%
|Germany       | 22.8% | -    
|Ireland       | 25.0% | 25.0%
|Australia     | 30.0% | 30.0%
|United States | 35.0% | -    



28


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




France tax legislation

In December 2013, the France government
enacted corporate tax legislation that will lead to increases in current tax for companies operating in France, including a temporary
surtax of 10.7% (with the surtax levied as a percent of base corporate income tax payable). The new surtax rate is applicable for
companies which have annual revenue in excess of €250 million and if applicable to Vermilion’s France Operations would
effectively increase the statutory rate applicable to our French operations to 38.1% for applicable years.  The surtax has
been extended to tax years ending up to December 31, 2016. The French operations were not subject to the surcharge in 2014 and
are not expected to be subject to the surcharge for 2015 at current commodity prices.



In 2012, the France government enacted a
new 3% tax on dividend distributions made by entities subject to corporate income tax in France. The tax applies to any dividends
paid on or after April 17, 2012 and is not recovered by any tax treaties or deductible for French corporate income tax purposes.
Vermilion did not pay any dividends from its French entities in 2014.



Tax pools

As at December 31, 2014, we had the following tax pools:



|($M)          | Oil & Gas Assets |  | Tax Losses4 | Other  | Total    
|------------- | ---------------- |  | ----------- | ------ | ---------
|Canada        | 1,128,614 (1)    |  | 326,300     | 6,299  | 1,461,213
|France        | 403,201 (2)      |  | -           | -      | 403,201  
|Netherlands   | 59,032 (3)       |  | -           | -      | 59,032   
|Germany       | 134,550 (2)      |  | 17,348      | 17,004 | 168,902  
|Ireland       | 897,528 (4)      |  | 332,140     | -      | 1,229,668
|Australia     | 219,273 (1)      |  | -           | -      | 219,273  
|United States | 12,072 (1)       |  | 395         | -      | 12,467   
|Total         | 2,854,270        |  | 676,183     | 23,303 | 3,553,756
|              |                  |  |             |        |          

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

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

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

| | (4) | Development expenditures and losses are deductible at 100% against taxable income
| | --- | ---------------------------------------------------------------------------------

29


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




FINANCIAL POSITION REVIEW



Balance sheet strategy

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



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



In the current low commodity price environment,
Vermilion’s net debt to fund flows ratio is accepted to be higher than the longer term target ratio. During this period,
Vermilion will remain focused on maintaining a strong balance sheet and will manage the business accordingly.



Long-term debt

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



|                          | Annual Interest Rate |         |  | As At
|------------------------- | -------------------- | ------- |  | -----
|                          | Dec 31,              | Dec 31, |  |      
|($M)                      | 2014                 | 2013    |  |      
|Revolving credit facility | 3.1%                 | 3.3%    |  |      
|Senior unsecured notes    | 6.5%                 | 6.5%    |  |      
|Long-term debt            | 3.8%                 | 4.2%    |  |      



Revolving Credit Facility

On January 30, 2015, Vermilion exercised
its option to increase its credit facility to $1.75 billion. The facility bears interest at rates applicable to demand loans plus
applicable margins. The following table outlines the terms of our revolving credit facility:



|                              | As At        
|----------------------------- | -------------
|                              | Dec 31,      
|                              | 2014         
|Total facility amount         | $1.75 billion
|Amount drawn                  | $1.0 billion 
|Letters of credit outstanding | $8.6 million 
|Facility maturity date        | 31-May-17    



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



|                                                       |       | As At  
|------------------------------------------------------ | ----- | -------
|                                                       |       | Dec 31,
|Financial covenant                                     | Limit | 2014   
|Consolidated total debt to consolidated EBITDA         | 4.0   | 1.21   
|Consolidated total senior debt to consolidated EBITDA  | 3.0   | 0.99   
|Consolidated total senior debt to total capitalization | 50%   | 31%    



30


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




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



| | · | Consolidated total debt: Includes all amounts
classified as “Long-term debt” on our balance sheet.
| | - | --------------------------------------------------------------------------------------------------

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

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

| | · | Total capitalization: Includes all amounts
on our balance sheet classified as “Long-term debt” and “Shareholders’ equity”.
| | - | --------------------------------------------------------------------------------------------------------------------------



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



Senior Unsecured Notes

We have outstanding senior unsecured notes
that are senior unsecured obligations and rank pari passu with all our other present and future unsecured and unsubordinated indebtedness.
The following table outlines the terms of these notes:



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



Subsequent to February 10, 2015, Vermilion
may redeem all or part of the senior unsecured notes at 100% of their principal amount plus any accrued and unpaid interest. The
notes were initially recognized at fair value net of transaction costs and are subsequently measured at amortized cost using an
effective interest rate of 7.1%.



Net debt

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



|                                                | As At    
|----------------------------------------------- | ---------
|                                                | Dec 31,  
|($M)                                            | 2014     
|Long-term debt                                  | 1,238,080
|Current liabilities                             | 365,729  
|Current assets                                  | (338,159)
|Net debt                                        | 1,265,650
|                                                |          
|Ratio of net debt to fund flows from operations | 1.6      



Long-term debt as at December 31, 2014 increased
to $1.24 billion from $990.0 million as at December 31, 2013 as a result of draws on the revolving credit facility during the current
year to fund our acquisitions in Germany and Saskatchewan coupled with the assumption of $47.5 million of long-term debt pursuant
to the latter acquisition. This increase in long-term debt resulted in an increase to net debt from $749.7 million to $1.27 billion.
As a result of this increase to long-term debt, the ratio of net debt to fund flows from operations increased from 1.1 as at December
31, 2013 to 1.6 as at December 31, 2014.



Shareholders’ capital

Beginning with the January 2014 dividend
paid on February 18, 2014, we increased our monthly dividend by 7.5%. This was our second consecutive annual increase.



During the year ended December 31, 2014,
we maintained monthly dividends at $0.215 per share and declared dividends totalled $272.7 million.



31


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




The following table outlines our dividend
payment history:



|Date                              | Monthly dividend per unit or share
|--------------------------------- | ----------------------------------
|January 2003 to December 2007     | $0.17                             
|January 2008 to December 2012     | $0.19                             
|January 2013 to December 31, 2013 | $0.20                             
|January 2014 to Present           | $0.215                            



Our policy with respect to dividends is
to be conservative and maintain a low ratio of dividends to fund flows from operations. During low price commodity cycles, we will
initially maintain dividends and allow the ratio to rise. Should low commodity price cycles remain for an extended period of time,
we will evaluate the necessity of changing the level of dividends, taking into consideration capital development requirements,
debt levels and acquisition opportunities. It is not currently expected that Vermilion will be required to change its dividend
in 2015.



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



The following table reconciles the change
in shareholders’ capital:



|Shareholders’ Capital                                         | Number of Shares ('000s) |         | Amount ($M)
|------------------------------------------------------------- | ------------------------ | ------- | -----------
|Balance as at December 31, 2013                               |                          | 102,123 |            
|Shares issued pursuant to corporate acquisition               |                          | 2,827   |            
|Issuance of shares pursuant to the dividend reinvestment plan |                          | 1,279   |            
|Vesting of equity based awards                                |                          | 955     |            
|Share-settled dividends on vested equity based awards         |                          | 108     |            
|Shares issued pursuant to the bonus plan                      |                          | 11      |            
|Balance as at December 31, 2014                               |                          | 107,303 |            



As at December 31, 2014, there were approximately
1.8 million VIP awards outstanding. As at February 27, 2015, there were approximately 107.6 million common shares issued and outstanding.



CONTRACTUAL OBLIGATIONS AND COMMITMENTS



As at December 31, 2014, we had the following contractual obligations
and commitments:



|($M)                                                 | Less than 1 year | 1 - 3 years | 3 - 5 years | After 5 years | Total    
|---------------------------------------------------- | ---------------- | ----------- | ----------- | ------------- | ---------
|Long-term debt                                       | 14,625           | 1,240,691   | -           | -             | 1,255,316
|Operating lease obligations                          | 14,782           | 19,030      | 16,328      | 18,549        | 68,689   
|Ship or pay agreement relating to the Corrib project | 6,807            | 9,128       | 7,461       | 40,152        | 63,548   
|Purchase obligations                                 | 25,257           | 8,911       | 27          | -             | 34,195   
|Drilling and service agreements                      | 24,884           | 21,153      | -           | -             | 46,037   
|Total contractual obligations and commitments        | 86,355           | 1,298,913   | 23,816      | 58,701        | 1,467,785



ASSET RETIREMENT OBLIGATIONS



As at December 31, 2014, asset retirement
obligations were $350.8 million compared to $326.2 million as at December 31, 2013.



The increase in asset retirement obligations
is largely attributable to accretion, additions from new wells drilled during the year, and abandonment obligations associated
with the assets acquired in Germany, the United States, and Canada.



32


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




RISKS AND UNCERTAINTIES



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



Commodity prices

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



Exchange rates

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



Production and sales volumes

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



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



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



Interest rates

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



Reserve volumes

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



Asset retirement obligations

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



33


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




Government regulation and income tax regime

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



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



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



FINANCIAL RISK MANAGEMENT



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



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



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



CRITICAL ACCOUNTING ESTIMATES



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



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



Depletion and depreciation

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



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



Asset retirement obligations

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





34


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




Assessment of impairments

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



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



Taxes

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



OFF BALANCE SHEET ARRANGEMENTS



We have certain lease agreements that are
entered into in the normal course of operations, all of which are operating leases and accordingly no asset or liability value
has been assigned to the consolidated balance sheet as at December 31, 2014.



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



ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED



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



IFRS 9 “Financial Instruments”

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



IFRS 15 “Revenue from Contracts
with Customers”

On May 28, 2014, the IASB issued IFRS 15
“Revenue from Contracts with Customers”, a new standard that specifies recognition requirements for revenue as well
as requiring entities to provide the users of financial statements with more informative and relevant disclosures. The standard
replaces IAS 11 “Construction Contracts” and IAS 18 “Revenue” as well as a number of revenue-related interpretations.
Vermilion will adopt the standard for reporting periods beginning January 1, 2017.



35


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




HEALTH, SAFETY AND ENVIRONMENT



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



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



In 2014, we remained committed to the principles
of the Responsible Canadian EnergyTM program set out by the Canadian Association of Petroleum Producers.  Responsible
Canadian EnergyTM is an association-wide performance reporting program to demonstrate progress in environmental, health, safety,
and social performance.



We uphold our commitment to keep our people
safe and to reduce impacts to land, water and air, as policies and procedures demonstrating leadership in these areas, were maintained
and further developed in 2014.  Examples of our accomplishments during the year included:



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

| | - | Reviewed and updated our HSE Policy to reflect our HSE maturity advances;
| | - | -------------------------------------------------------------------------

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

| | - | Submitted our first report to the Carbon Disclosure Project (CDP);
| | - | ------------------------------------------------------------------

| | - | Introduced a Fair Culture Policy to ensure transparency in our processes;
| | - | -------------------------------------------------------------------------

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

| | - | Advanced the completion of our Process Safety and Asset Integrity Management Systems;
| | - | -------------------------------------------------------------------------------------

| | - | Updated various key Corporate HSE Standards such as the Event Management Practice;
| | - | ----------------------------------------------------------------------------------

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

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

| | - | Development, communication and measurement against leading and lagging HSE key performance indicators;
| | - | ------------------------------------------------------------------------------------------------------

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

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

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



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



CORPORATE GOVERNANCE



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



We comply with the objectives and guidelines
relating to corporate governance adopted by the Canadian Securities Administrators and the Toronto Stock Exchange. In addition,
the Board monitors and considers the implementation of corporate governance standards proposed by various regulatory and non-regulatory
authorities in Canada. A discussion of corporate governance policies will be provided in our Management Proxy Circular, which will
be filed on SEDAR (www.sedar.com) and mailed to all shareholders on April 10, 2015.



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



DISCLOSURE CONTROLS AND PROCEDURES



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



As of December 31, 2014, we have evaluated
the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, the Chief Executive
Officer and Chief Financial Officer have concluded and certified that our disclosure controls and procedures are effective.



36


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




INTERNAL CONTROL OVER FINANCIAL REPORTING



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



The Chief Executive Officer and the Chief
Financial Officer of Vermilion have assessed the effectiveness of Vermilion’s internal control over financial reporting as
defined in Rule 13a-15 under the US Securities Exchange Act of 1934 and as defined in Canada by National Instrument 52-109, Certification
of Disclosure in Issuers’ Annual and Interim Filings. The assessment was based on the framework in Internal Control –
Integrated Framework (2013)issued by the Committee of Sponsoring Organizations of the Treadway Commission.The Chief
Executive Officer and the Chief Financial Officer of Vermilion have concluded that Vermilion’s internal control over financial
reporting was effective as of December 31, 2014. The effectiveness of Vermilion’s internal control over financial reporting
as of December 31, 2014 has been audited by Deloitte LLP, as reflected in their report included in the 2014 audited annual financial
statements filed with the US Securities and Exchange Commission. No changes were made to Vermilion’s internal control over
financial reporting during the year ended December 31, 2014, that have materially affected, or are reasonably likely to materially
affect, the internal controls over financial reporting.



37


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




Supplemental Table 1: Netbacks



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



|                                       | Three
    Months Ended December 31, 2014 |                 | Year
    Ended December 31, 2014 |  |                | Three
    MonthsEndedDecember 31,2013 |         | Year
    EndedDecember 31,2013
|-------------------------------------- | ---------------------------------------- | --------------- | -------------------------------- |  | -------------- | ------------------------------------- | ------- | ------------------------------
|                                       | Oil
    & NGLs                           | Natural
    Gas | Total                            |  | Oil
    & NGLs | Natural
    Gas                       | Total   |                               
|                                       | $/bbl                                    | $/mcf           | $/boe                            |  | $/bbl          | $/mcf                                 | $/boe   |                               
|Canada                                 |                                          |                 |                                  |  |                |                                       |         |                               
|Sales                                  | 71.13                                    | 3.74            | 51.27                            |  | 88.98          | 4.53                                  | 64.06   |                               
|Royalties                              | (11.00)                                  | (0.25)          | (7.12)                           |  | (11.78)        | (0.32)                                | (7.81)  |                               
|Transportation                         | (2.03)                                   | (0.15)          | (1.57)                           |  | (2.25)         | (0.16)                                | (1.74)  |                               
|Operating                              | (10.40)                                  | (1.08)          | (8.80)                           |  | (9.91)         | (1.31)                                | (9.07)  |                               
|Operating
    netback                  | 47.70                                    | 2.26            | 33.78                            |  | 65.04          | 2.74                                  | 45.44   |                               
|General
    and administration         |                                          |                 | (1.29)                           |  |                |                                       | (2.00)  |                               
|Fund
    flows from operations netback |                                          |                 | 32.49                            |  |                |                                       | 43.44   |                               
|France                                 |                                          |                 |                                  |  |                |                                       |         |                               
|Sales                                  | 79.25                                    | -               | 79.25                            |  | 105.43         | -                                     | 105.43  |                               
|Royalties                              | (6.07)                                   | -               | (6.07)                           |  | (6.95)         | -                                     | (6.95)  |                               
|Transportation                         | (3.94)                                   | -               | (3.94)                           |  | (4.64)         | -                                     | (4.64)  |                               
|Operating                              | (13.01)                                  | -               | (13.01)                          |  | (15.09)        | -                                     | (15.09) |                               
|Operating
    netback                  | 56.23                                    | -               | 56.23                            |  | 78.75          | -                                     | 78.75   |                               
|General
    and administration         |                                          |                 | (3.62)                           |  |                |                                       | (5.12)  |                               
|Current
    income taxes               |                                          |                 | (5.89)                           |  |                |                                       | (16.36) |                               
|Fund
    flows from operations netback |                                          |                 | 46.72                            |  |                |                                       | 57.27   |                               
|Netherlands                            |                                          |                 |                                  |  |                |                                       |         |                               
|Sales                                  | 76.40                                    | 8.62            | 52.07                            |  | 91.33          | 8.70                                  | 52.65   |                               
|Royalties                              | -                                        | (0.41)          | (2.40)                           |  | -              | (0.36)                                | (2.13)  |                               
|Operating                              | -                                        | (2.15)          | (12.70)                          |  | -              | (1.72)                                | (10.22) |                               
|Operating
    netback                  | 76.40                                    | 6.06            | 36.97                            |  | 91.33          | 6.62                                  | 40.30   |                               
|General
    and administration         |                                          |                 | (5.10)                           |  |                |                                       | (1.54)  |                               
|Current
    income taxes               |                                          |                 | 4.35                             |  |                |                                       | (1.77)  |                               
|Fund
    flows from operations netback |                                          |                 | 36.22                            |  |                |                                       | 36.99   |                               
|Germany                                |                                          |                 |                                  |  |                |                                       |         |                               
|Sales                                  | -                                        | 8.20            | 49.19                            |  | -              | 7.67                                  | 46.03   |                               
|Royalties                              | -                                        | (1.52)          | (9.13)                           |  | -              | (1.57)                                | (9.45)  |                               
|Transportation                         | -                                        | (0.13)          | (0.80)                           |  | -              | (0.43)                                | (2.60)  |                               
|Operating                              | -                                        | (1.76)          | (10.54)                          |  | -              | (1.59)                                | (9.53)  |                               
|Operating
    netback                  | -                                        | 4.79            | 28.72                            |  | -              | 4.08                                  | 24.45   |                               
|General
    and administration         |                                          |                 | (8.10)                           |  |                |                                       | (5.14)  |                               
|Current
    income taxes               |                                          |                 | 4.21                             |  |                |                                       | (0.05)  |                               
|Fund
    flows from operations netback |                                          |                 | 24.83                            |  |                |                                       | 19.26   |                               
|Australia                              |                                          |                 |                                  |  |                |                                       |         |                               
|Sales                                  | 90.37                                    | -               | 90.37                            |  | 113.80         | -                                     | 113.80  |                               
|Operating                              | (22.56)                                  | -               | (22.56)                          |  | (24.66)        | -                                     | (24.66) |                               
|PRRT
    (1)                           | (17.28)                                  | -               | (17.28)                          |  | (24.22)        | -                                     | (24.22) |                               
|Operating
    netback                  | 50.53                                    | -               | 50.53                            |  | 64.92          | -                                     | 64.92   |                               
|General
    and administration         |                                          |                 | (2.07)                           |  |                |                                       | (2.36)  |                               
|Corporate
    income taxes             |                                          |                 | (6.11)                           |  |                |                                       | (9.83)  |                               
|Fund
    flows from operations netback |                                          |                 | 42.35                            |  |                |                                       | 52.73   |                               
|United
    States                      |                                          |                 |                                  |  |                |                                       |         |                               
|Sales                                  | 74.08                                    | -               | 74.08                            |  | 74.08          | -                                     | 74.08   |                               
|Royalties                              | (20.38)                                  | -               | (20.38)                          |  | (20.38)        | -                                     | (20.38) |                               
|Operating                              | (13.44)                                  | -               | (13.44)                          |  | (13.44)        | -                                     | (13.44) |                               
|Operating
    netback                  | 40.26                                    | -               | 40.26                            |  | 40.26          | -                                     | 40.26   |                               
|General
    and administration         |                                          |                 | (53.44)                          |  |                |                                       | (53.44) |                               
|Fund
    flows from operations netback |                                          |                 | (13.18)                          |  |                |                                       | (13.18) |                               
|Total
    Company                      |                                          |                 |                                  |  |                |                                       |         |                               
|Sales                                  | 78.64                                    | 5.90            | 63.79                            |  | 100.06         | 6.42                                  | 77.75   |                               
|Realized
    hedging gain (loss)       | 7.17                                     | 0.02            | 4.76                             |  | 2.21           | 0.28                                  | 2.01    |                               
|Royalties                              | (6.66)                                   | (0.50)          | (5.41)                           |  | (7.55)         | (0.51)                                | (5.92)  |                               
|Transportation                         | (2.14)                                   | (0.28)          | (1.98)                           |  | (2.60)         | (0.30)                                | (2.32)  |                               
|Operating                              | (14.29)                                  | (1.50)          | (12.48)                          |  | (14.87)        | (1.49)                                | (12.72) |                               
|PRRT
    (1)                           | (4.31)                                   | -               | (2.83)                           |  | (5.19)         | -                                     | (3.30)  |                               
|Operating
    netback                  | 58.41                                    | 3.64            | 45.85                            |  | 72.06          | 4.40                                  | 55.50   |                               
|General
    and administration         |                                          |                 | (2.76)                           |  |                |                                       | (3.38)  |                               
|Interest
    expense                   |                                          |                 | (2.70)                           |  |                |                                       | (2.72)  |                               
|Realized
    foreign exchange loss     |                                          |                 | (0.03)                           |  |                |                                       | (0.04)  |                               
|Other
    income                       |                                          |                 | 0.04                             |  |                |                                       | 0.04    |                               
|Corporate
    income taxes(1)          |                                          |                 | (1.73)                           |  |                |                                       | (5.31)  |                               
|Fund
    flows from operations netback |                                          |                 | 38.67                            |  |                |                                       | 44.09   |                               



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





38


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




Supplemental Table 2: Hedges



The following tables outline Vermilion’s outstanding risk
management positions as at December 31, 2014:



|                                          | Note | Volume      | Strike Price(s)    
|----------------------------------------- | ---- | ----------- | -------------------
|Crude Oil                                 |      |             |                    
|WTI - Collar                              |      |             |                    
|January 2015 - March 2015                 |      | 500 bbl/d   | 76.25 - 92.15 US $ 
|January 2015 - June 2015                  | 1    | 250 bbl/d   | 75.00 - 82.75 US $ 
|Dated Brent - Collar                      |      |             |                    
|January 2015 - March 2015                 |      | 500 bbl/d   | 78.75 - 89.63 US $ 
|Dated Brent - Swap                        |      |             |                    
|January 2015                              | 2    | 500 bbl/d   | 101.55 US $        
|January 2015 - March 2015                 | 3    | 250 bbl/d   | 91.95 US $         
|February 2015                             | 4    | 500 bbl/d   | 103.80 US $        
|March 2015                                | 5    | 250 bbl/d   | 110.40 US $        
|MSW - Fixed Price Differential (Physical) |      |             |                    
|November 2014 - March 2015                |      | 1,042 bbl/d | WTI less 6.85 US $ 
|January 2015 - March 2015                 |      | 2,098 bbl/d | WTI less 7.39 US $ 
|LSB - Fixed Price Differential (Physical) |      |             |                    
|October 2014 - March 2015                 |      | 830 bbl/d   | WTI less 10.00 US $
|January 2015 - March 2015                 |      | 524 bbl/d   | WTI less 8.60 US $ 



| | (1) | The contracted volumes increase to 750 boe/d for any monthly settlement periods above the contracted
ceiling price.
| | --- | -------------------------------------------------------------------------------------------------------------------

| | (2) | On March 31, 2015, the counterparty has the option to
extend the swap for the period of April to June 2015 for 1,000 boe/d at the contracted price.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | On March 31, 2015, the counterparty has the option to
extend the swap for the period of April to June 2015 for 500 boe/d at the contracted price.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | On June 30, 2015, the counterparty has the option to
extend the swap for the period of July to September 2015 for 1,000 boe/d at the contracted price.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | (5) | On September 30, 2015, the counterparty has the option to extend the swap for the period of October
to December 2015 for 500 boe/d at the contracted price.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------



|North American Natural Gas            |  |                |                        
|------------------------------------- |  | -------------- | -----------------------
|AECO - Collar                         |  |                |                        
|April 2014 - March 2015               |  | 2,500 GJ/d     | 3.60 - 4.08 CAD $      
|November 2014 - March 2015            |  | 2,500 GJ/d     | 3.60 - 4.27 CAD $      
|April 2015 - October 2015             |  | 2,500 GJ/d     | 2.75 - 3.52 CAD $      
|April 2015 - December 2015            |  | 2,500 GJ/d     | 2.75 - 3.52 CAD $      
|AECO Basis - Fixed Price Differential |  |                |                        
|January 2015 - December 2015          |  | 5,000 mmbtu/d  | Nymex HH less 0.68 US $
|Nymex HH - Collar                     |  |                |                        
|November 2014 - March 2015            |  | 10,000 mmbtu/d | 3.50 - 5.00 US $       
|January 2015 - March 2015             |  | 10,000 mmbtu/d | 3.70 - 5.10 US $       
|April 2015 - October 2015             |  | 10,000 mmbtu/d | 3.36 - 4.01 US $       
|April 2015 - December 2015            |  | 2,500 mmbtu/d  | 3.50 - 4.11 US $       
|Nymex HH - Swap                       |  |                |                        
|January 2015                          |  | 2,500 mmbtu/d  | 4.53 US $              
|January 2015 - March 2015             |  | 5,000 mmbtu/d  | 4.38 US $              
|                                      |  |                |                        
|European Natural Gas                  |  |                |                        
|TTF - Collar                          |  |                |                        
|January 2015 - December 2015          |  | 2,592 GJ/d     | 6.11 - 6.83 EUR €      
|TTF - Swap                            |  |                |                        
|January 2015 - March 2015             |  | 4,392 GJ/d     | 6.47 EUR €             
|January 2015 - December 2015          |  | 11,664 GJ/d    | 6.45 EUR €             
|January 2015 - March 2016             |  | 5,184 GJ/d     | 6.40 EUR €             
|January 2015 - June 2016              |  | 2,592 GJ/d     | 6.07 EUR €             
|February 2015                         |  | 2,592 GJ/d     | 6.46 EUR €             
|February 2015 - March 2016            |  | 5,184 GJ/d     | 6.24 EUR €             
|April 2015 - December 2015            |  | 2,592 GJ/d     | 6.30 EUR €             
|April 2015 - March 2016               |  | 5,832 GJ/d     | 6.18 EUR €             





39


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




|                             | Note | Volume                | Strike Price(s)    
|---------------------------- | ---- | --------------------- | -------------------
|Electricity                  |      |                       |                    
|AESO - Swap (Physical)       |      |                       |                    
|January 2013 - December 2015 |      | 72.0 MWh/d            | 53.17 CAD $        
|                             |      |                       |                    
|US Dollar                    |      |                       |                    
|USD - Collar                 |      |                       |                    
|January 2015 - March 2015    |      | 7,000,000 US $/month  | 1.140 - 1.184 CAD $
|January 2015 - March 2015    | 1    | 15,500,000 US $/month | 1.140 - 1.157 CAD $



| | (1) | Vermilion has upside participation on this hedge up to
the limit price of 1.222 CAD; above which, settlement will occur at the conditional call level of 1.157 CAD.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------





40


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




Supplemental Table 3: Capital Expenditures



|                                            | Three Months Ended |         |         | Year Ended
|------------------------------------------- | ------------------ | ------- | ------- | ----------
|By classification                           | Dec 31,            | Sep 30, | Dec 31, |           
|($M)                                        | 2014               | 2014    | 2013    |           
|Drilling and development                    | 151,395            | 180,479 | 147,929 |           
|Dispositions                                | -                  | -       | -       |           
|Exploration and evaluation                  | 14,848             | 9,554   | 549     |           
|Capital expenditures                        | 166,243            | 190,033 | 148,478 |           
|Property acquisition                        | 1,652              | 40,847  | 1,603   |           
|Corporate acquisition                       | -                  | -       | 27,500  |           
|Acquisitions                                | 1,652              | 40,847  | 29,103  |           
|                                            |                    |         |         |           
|                                            | Three Months Ended |         |         | Year Ended
|By category                                 | Dec 31,            | Sep 30, | Dec 31, |           
|($M)                                        | 2014               | 2014    | 2013    |           
|Land                                        | 1,457              | 2,346   | 2,676   |           
|Seismic                                     | 7,598              | 6,135   | 1,942   |           
|Drilling and completion                     | 69,691             | 93,386  | 68,993  |           
|Production equipment and facilities         | 77,272             | 68,964  | 63,420  |           
|Recompletions                               | 7,696              | 10,853  | 3,309   |           
|Other                                       | 2,529              | 8,349   | 8,138   |           
|Dispositions                                | -                  | -       | -       |           
|Capital expenditures                        | 166,243            | 190,033 | 148,478 |           
|Acquisitions                                | 1,652              | 40,847  | 29,103  |           
|Total capital expenditures and acquisitions | 167,895            | 230,880 | 177,581 |           
|                                            |                    |         |         |           
|                                            | Three Months Ended |         |         | Year Ended
|By country                                  | Dec 31,            | Sep 30, | Dec 31, |           
|($M)                                        | 2014               | 2014    | 2013    |           
|Canada                                      | 87,113             | 125,276 | 78,848  |           
|France                                      | 37,189             | 35,082  | 31,899  |           
|Netherlands                                 | 10,022             | 10,087  | 43,198  |           
|Germany                                     | 563                | 1,358   | -       |           
|Ireland                                     | 20,932             | 30,050  | 14,472  |           
|Australia                                   | 11,616             | 15,985  | 8,420   |           
|United States                               | 460                | 11,175  | -       |           
|Corporate                                   | -                  | 1,867   | 744     |           
|Total capital expenditures and acquisitions | 167,895            | 230,880 | 177,581 |           





41


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




Supplemental Table 4: Production



|                  |                               | Q4/14  | Q3/14  | Q2/14  | Q1/14  | Q4/13  | Q3/13  | Q2/13  | Q1/13  | Q4/12  | Q3/12  | Q2/12  | Q1/12 
|----------------- | ----------------------------- | ------ | ------ | ------ | ------ | ------ | ------ | ------ | ------ | ------ | ------ | ------ | ------
|Canada            |                               |        |        |        |        |        |        |        |        |        |        |       
|                  | Crude oil (bbls/d)            | 11,384 | 11,469 | 12,676 | 9,437  | 8,719  | 7,969  | 8,885  | 7,966  | 7,983  | 7,322  | 7,757  | 7,574 
|                  | NGLs (bbls/d)                 | 2,741  | 2,291  | 2,796  | 2,071  | 1,699  | 1,897  | 1,725  | 1,335  | 1,106  | 1,204  | 1,321  | 1,302 
|                  | Natural gas (mmcf/d)          | 58.36  | 57.07  | 57.59  | 49.53  | 41.43  | 43.40  | 43.69  | 41.04  | 31.41  | 35.54  | 41.32  | 41.83 
|                  | Total (boe/d)                 | 23,851 | 23,272 | 25,070 | 19,763 | 17,322 | 17,099 | 17,892 | 16,140 | 14,323 | 14,449 | 15,965 | 15,848
|                  | %
    of consolidated         | 49%    | 47%    | 49%    | 42%    | 43%    | 41%    | 42%    | 41%    | 40%    | 40%    | 40%    | 40%   
|France            |                               |        |        |        |        |        |        |        |        |        |        |       
|                  | Crude oil (bbls/d)            | 11,133 | 11,111 | 11,025 | 10,771 | 11,131 | 11,625 | 10,390 | 10,330 | 9,843  | 9,767  | 9,931  | 10,270
|                  | Natural gas (mmcf/d)          | -      | -      | -      | -      | -      | 5.23   | 4.19   | 4.21   | 3.91   | 3.39   | 3.57   | 3.48  
|                  | Total (boe/d)                 | 11,133 | 11,111 | 11,025 | 10,771 | 11,131 | 12,496 | 11,088 | 11,032 | 10,495 | 10,333 | 10,526 | 10,850
|                  | %
    of consolidated         | 22%    | 22%    | 21%    | 23%    | 27%    | 30%    | 26%    | 29%    | 29%    | 28%    | 27%    | 28%   
|Netherlands       |                               |        |        |        |        |        |        |        |        |        |        |       
|                  | NGLs (bbls/d)                 | 81     | 63     | 96     | 69     | 62     | 48     | 50     | 96     | 70     | 41     | 84     | 72    
|                  | Natural gas (mmcf/d)          | 31.35  | 38.07  | 40.35  | 43.15  | 37.53  | 28.78  | 38.52  | 36.91  | 33.03  | 34.59  | 33.74  | 35.08 
|                  | Total (boe/d)                 | 5,306  | 6,407  | 6,822  | 7,260  | 6,318  | 4,845  | 6,470  | 6,248  | 5,574  | 5,806  | 5,707  | 5,919 
|                  | %
    of consolidated         | 11%    | 13%    | 13%    | 16%    | 15%    | 12%    | 15%    | 16%    | 15%    | 16%    | 15%    | 15%   
|Germany           |                               |        |        |        |        |        |        |        |        |        |        |       
|                  | Natural gas (mmcf/d)          | 17.71  | 15.38  | 16.13  | 10.64  | -      | -      | -      | -      | -      | -      | -      | -     
|                  | Total (boe/d)                 | 2,952  | 2,563  | 2,689  | 1,773  | -      | -      | -      | -      | -      | -      | -      | -     
|                  | %
    of consolidated         | 6%     | 5%     | 5%     | 4%     | -      | -      | -      | -      | -      | -      | -      | -     
|Australia         |                               |        |        |        |        |        |        |        |        |        |        |       
|                  | Crude oil (bbls/d)            | 6,134  | 6,567  | 6,483  | 7,110  | 6,189  | 7,070  | 7,363  | 5,287  | 5,873  | 5,958  | 6,970  | 6,648 
|                  | %
    of consolidated         | 12%    | 13%    | 12%    | 15%    | 15%    | 17%    | 17%    | 14%    | 16%    | 16%    | 18%    | 17%   
|United
    States |                               |        |        |        |        |        |        |        |        |        |        |       
|                  | Crude oil (bbls/d)            | 195    | -      | -      | -      | -      | -      | -      | -      | -      | -      | -      | -     
|                  | Total (boe/d)                 | 195    | -      | -      | -      | -      | -      | -      | -      | -      | -      | -      | -     
|Consolidated      |                               |        |        |        |        |        |        |        |        |        |        |       
|                  | Crude oil &
    NGLs (bbls/d) | 31,668 | 31,501 | 33,076 | 29,458 | 27,800 | 28,609 | 28,413 | 25,014 | 24,875 | 24,292 | 26,063 | 25,866
|                  | % of consolidated             | 64%    | 63%    | 63%    | 63%    | 68%    | 69%    | 66%    | 65%    | 69%    | 66%    | 67%    | 66%   
|                  | Natural gas (mmcf/d)          | 107.42 | 110.52 | 114.08 | 103.32 | 78.96  | 77.41  | 86.40  | 82.16  | 68.34  | 73.52  | 78.63  | 80.39 
|                  | % of consolidated             | 36%    | 37%    | 37%    | 37%    | 32%    | 31%    | 34%    | 35%    | 31%    | 34%    | 33%    | 34%   
|                  | Total
    (boe/d)             | 49,571 | 49,920 | 52,089 | 46,677 | 40,960 | 41,510 | 42,813 | 38,707 | 36,265 | 36,546 | 39,168 | 39,265
|                  |                               |        |        |        |        |        |        |        |        |        |        |        |       
|                  |                               | 2014   | 2013   | 2012   | 2011   | 2010   | 2009   |        |        |        |        |        |       
|Canada            |                               |        |        |        |        |        |        |        |        |        |        |       
|                  | Crude
    oil (bbls/d)        | 11,248 | 8,387  | 7,659  | 4,701  | 2,778  | 2,137  |        |        |        |        |        |       
|                  | NGLs
    (bbls/d)             | 2,476  | 1,666  | 1,232  | 1,297  | 1,427  | 1,518  |        |        |        |        |        |       
|                  | Natural
    gas (mmcf/d)      | 55.67  | 42.39  | 37.50  | 43.38  | 43.91  | 47.85  |        |        |        |        |        |       
|                  | Total
    (boe/d)             | 23,001 | 17,117 | 15,142 | 13,227 | 11,524 | 11,629 |        |        |        |        |        |       
|                  | %
    of consolidated         | 47%    | 41%    | 40%    | 38%    | 36%    | 37%    |        |        |        |        |        |       
|France            |                               |        |        |        |        |        |        |        |        |        |        |       
|                  | Crude oil (bbls/d)            | 11,011 | 10,873 | 9,952  | 8,110  | 8,347  | 8,246  |        |        |        |        |        |       
|                  | Natural gas (mmcf/d)          | -      | 3.40   | 3.59   | 0.95   | 0.92   | 1.05   |        |        |        |        |        |       
|                  | Total (boe/d)                 | 11,011 | 11,440 | 10,550 | 8,269  | 8,501  | 8,421  |        |        |        |        |        |       
|                  | %
    of consolidated         | 22%    | 28%    | 28%    | 23%    | 26%    | 27%    |        |        |        |        |        |       
|Netherlands       |                               |        |        |        |        |        |        |        |        |        |        |       
|                  | NGLs (bbls/d)                 | 77     | 64     | 67     | 58     | 35     | 23     |        |        |        |        |        |       
|                  | Natural gas (mmcf/d)          | 38.20  | 35.42  | 34.11  | 32.88  | 28.31  | 21.06  |        |        |        |        |        |       
|                  | Total (boe/d)                 | 6,443  | 5,967  | 5,751  | 5,538  | 4,753  | 3,533  |        |        |        |        |        |       
|                  | %
    of consolidated         | 13%    | 15%    | 15%    | 16%    | 15%    | 11%    |        |        |        |        |        |       
|Germany           |                               |        |        |        |        |        |        |        |        |        |        |       
|                  | Natural gas (mmcf/d)          | 14.99  | -      | -      | -      | -      | -      |        |        |        |        |        |       
|                  | Total (boe/d)                 | 2,498  | -      | -      | -      | -      | -      |        |        |        |        |        |       
|                  | %
    of consolidated         | 5%     | -      | -      | -      | -      | -      |        |        |        |        |        |       
|Australia         |                               |        |        |        |        |        |        |        |        |        |        |       
|                  | Crude oil (bbls/d)            | 6,571  | 6,481  | 6,360  | 8,168  | 7,354  | 7,812  |        |        |        |        |        |       
|                  | %
    of consolidated         | 13%    | 16%    | 17%    | 23%    | 23%    | 25%    |        |        |        |        |        |       
|United
    States |                               |        |        |        |        |        |        |        |        |        |        |       
|                  | Crude oil (bbls/d)            | 49     | -      | -      | -      | -      | -      |        |        |        |        |        |       
|                  | Total (boe/d)                 | 49     | -      | -      | -      | -      | -      |        |        |        |        |        |       
|Consolidated      |                               |        |        |        |        |        |        |        |        |        |        |       
|                  | Crude oil &
    NGLs (bbls/d) | 31,432 | 27,471 | 25,270 | 22,334 | 19,941 | 19,735 |        |        |        |        |        |       
|                  | % of consolidated             | 63%    | 67%    | 67%    | 63%    | 62%    | 63%    |        |        |        |        |        |       
|                  | Natural gas (mmcf/d)          | 108.85 | 81.21  | 75.20  | 77.21  | 73.14  | 69.96  |        |        |        |        |        |       
|                  | % of consolidated             | 37%    | 33%    | 33%    | 37%    | 38%    | 37%    |        |        |        |        |        |       
|                  | Total
    (boe/d)             | 49,573 | 41,005 | 37,803 | 35,202 | 32,132 | 31,395 |        |        |        |        |        |       





42


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




Supplemental Table 5: Segmented Financial
Results



|                                            | Three
    Months Ended December 31, 2014
|------------------------------------------- | ----------------------------------------
|($M)                                        | Canada                                  
|Drilling
    and development                | 75,186                                  
|Exploration
    and evaluation              | 10,256                                  
|Oil and gas sales
    to external customers | 112,494                                 
|Royalties                                   | (15,626)                                
|Revenue from
    external customers         | 96,868                                  
|Transportation
    expense                  | (3,455)                                 
|Operating expense                           | (19,315)                                
|General and administration                  | (2,840)                                 
|PRRT                                        | -                                       
|Corporate income
    taxes                  | -                                       
|Interest expense                            | -                                       
|Realized gain
    on derivative instruments | -                                       
|Realized foreign
    exchange loss          | -                                       
|Realized
    other income                   | -                                       
|Fund
    flows from operations              | 71,258                                  



|                                            | Year
    Ended December 31, 2014
|------------------------------------------- | --------------------------------
|($M)                                        | Canada                          
|Total
    assets                            | 1,865,942                       
|Drilling
    and development                | 291,046                         
|Exploration
    and evaluation              | 43,696                          
|Oil and gas sales
    to external customers | 537,788                         
|Royalties                                   | (65,563)                        
|Revenue from
    external customers         | 472,225                         
|Transportation
    expense                  | (14,625)                        
|Operating expense                           | (76,178)                        
|General and administration                  | (16,791)                        
|PRRT                                        | -                               
|Corporate income
    taxes                  | -                               
|Interest expense                            | -                               
|Realized gain
    on derivative instruments | -                               
|Realized foreign
    exchange loss          | -                               
|Realized
    other income                   | -                               
|Fund
    flows from operations              | 364,631                         





43


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




ADDITIONAL AND NON-GAAP FINANCIAL MEASURES



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



Fund flows from operations:We define
fund flows from operations as cash flows from operating activities before changes in non-cash operating working capital and asset
retirement obligations settled. Management believes that by excluding the temporary impact of changes in non-cash operating working
capital, fund flows from operations provides a measure of our ability to generate cash (that is not subject to short-term movements
in non-cash operating working capital) necessary to pay dividends, repay debt, fund asset retirement obligations and make capital
investments. As we have presented fund flows from operations in the “Segmented Information” note of our audited consolidated
financial statements for the year ended December 31, 2014, we consider fund flows from operations to be an additional GAAP financial
measure.



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



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



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



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



Net debt:We define net debt as the
sum of long-term debt and working capital. Management uses net debt, and the ratio of net debt to fund flows from operations,
to analyze our financial position and leverage. Please refer to the preceding “Net Debt” section for a reconciliation
of the net debt non-GAAP financial measure.



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



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



Netbacks:Per boe and per mcf measures
used in the analysis of operational activities.



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



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



|                                              |          | Three Months Ended |          |         | Year Ended
|--------------------------------------------- | -------- | ------------------ | -------- | ------- | ----------
|                                              |          | Dec 31,            | Sep 30,  | Dec 31, |           
|($M)                                          | 2014     | 2014               | 2013     |         |           
|Cash flows from operating activities          | 229,146  | 235,010            | 177,003  |         |           
|Changes in non-cash operating working capital | (49,865) | (41,789)           | (18,769) |         |           
|Asset retirement obligations settled          | 6,247    | 4,677              | 5,426    |         |           
|Fund flows from operations                    | 185,528  | 197,898            | 163,660  |         |           
|Expenses related to Corrib                    | 2,299    | 1,849              | 839      |         |           
|Fund flows from operations (excluding Corrib) | 187,827  | 199,747            | 164,499  |         |           





44


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




|                                                              |          | Three Months Ended |          |         | Year Ended
|------------------------------------------------------------- | -------- | ------------------ | -------- | ------- | ----------
|                                                              |          | Dec 31,            | Sep 30,  | Dec 31, |           
|($M)                                                          | 2014     | 2014               | 2013     |         |           
|Dividends declared                                            | 69,119   | 68,896             | 61,208   |         |           
|Issuance of shares pursuant to the dividend reinvestment plan | (20,980) | (20,416)           | (18,775) |         |           
|Net dividends                                                 | 48,139   | 48,480             | 42,433   |         |           
|Drilling and development                                      | 151,395  | 180,479            | 147,929  |         |           
|Dispositions                                                  | -        | -                  | -        |         |           
|Exploration and evaluation                                    | 14,848   | 9,554              | 549      |         |           
|Asset retirement obligations settled                          | 6,247    | 4,677              | 5,426    |         |           
|Payout                                                        | 220,629  | 243,190            | 196,337  |         |           
|Corrib drilling and development                               | (20,932) | (30,050)           | (14,472) |         |           
|Payout (excluding Corrib)                                     | 199,697  | 213,140            | 181,865  |         |           



|                                              | As At  
|--------------------------------------------- | -------
|                                              | Dec 31,
|('000s of shares)                             | 2014   
|Shares outstanding                            | 107,303
|Potential shares issuable pursuant to the VIP | 3,031  
|Diluted shares outstanding                    | 110,334



45


Vermilion
                                         Energy Inc.2014
                                         Management's Discussion and Analysis - Exhibit 99.2




CORPORATE INFORMATION





|DIRECTORS
        
        Larry J. Macdonald 1,
        2, 3, 4, 5
        Chairman & CEO, Point
        Energy Ltd.
        Calgary, Alberta
        
        W. Kenneth Davidson 2,
        3
        Toronto, Ontario
        
        Lorenzo Donadeo
        Calgary, Alberta
        
        Claudio A. Ghersinich 2,
        5
        Executive Director, Carrera
        Investments Corp.
        Calgary, Alberta
        
        Joseph F. Killi 2,
        3
        Chairman, Parkbridge Lifestyle
        Communities Inc.
        Vice Chairman, Realex Properties
        Corp.
        Calgary, Alberta
        
        Loren M. Leiker 5
        Houston, Texas
        
        William F. Madison 2,
        4, 5
        Sugar Land, Texas
        
        Timothy R. Marchant 3,
        4, 5
        Calgary, Alberta
        
        Sarah E. Raiss 3
        Calgary, Alberta
        
        Kevin J. Reinhart
        Calgary, Alberta
        
        Catherine L. Williams
        Calgary, Alberta
        
        1Chairman
        of the Board
        2	Audit Committee
        3	Governance and Human Resources Committee
        4	Health, Safety and Environment Committee
        5	Independent Reserves Committee
        
        ANNUAL GENERAL MEETING
        
        May 8, 2015
        
        10:00 AM MST
        
        The Ballroom
        
        Metropolitan Centre
        
        333 – 4th
        Avenue S.W.
        
        Calgary, Alberta | OFFICERS
                                         AND KEY PERSONNEL
        
        CANADA
        
        Lorenzo Donadeo, P.Eng.
        
        Chief Executive Officer
        
        Anthony Marino, P.Eng.
        President & Chief Operating
        Officer
        
        John D. Donovan, FCA
        Executive Vice President
        Business Development
        
        Curtis W. Hicks, CA
        Executive Vice President
        & Chief Financial Officer
        
        Mona Jasinski, M.B.A.,
        C.H.R.P.
        Executive Vice President,
        People and Culture
        
        Terry Hergott, CMA
        Vice President Marketing
        
        Michael
        Kaluza, P.Eng.
        Vice
        President Canada Business Unit
        
        Daniel
        Goulet, P.Eng.
        Director
        Corporate HSE
        
        Dion
        Hatcher, P.Eng.
        Director
        Alberta Foothills – Canada Business Unit
        
        Bryce
        Kremnica, P.Eng.
        Director
        Field Operations – Canada Business Unit
        
        Dean
        N. Morrison, CFA
        Director
        Investor Relations
        
        Mike
        Prinz
        Director
        Information Technology & Information Systems
        
        Jenson
        Tan, P.Eng.
        Director
        New Ventures
        
        Robert
        (Bob) J. Engbloom, LL.B
        Corporate
        Secretary
        
        UNITED
        STATES
        
        Daniel
        G. Anderson
        Managing
        Director – U.S. Business Unit
        
        Timothy
        R. Morris
        Director,
        U.S. Business Development – U.S. Business Unit
        
        EUROPE
        
        Gerard
        Schut, P.Eng.
        Vice
        President European Operations
        
        Darcy
        Kerwin, P.Eng.
        Managing
        Director - France Business Unit
        
        Neil
        Wallace
        Managing
        Director - Netherlands Business Unit
        
        Albrecht
        Moehring
        Managing
        Director - Germany Business Unit
        
        AUSTRALIA
        Bruce
        D. Lake, P.Eng.
        Managing
        Director
        Australia
        Business Unit | AUDITORS
        
        Deloitte LLP
        Calgary, Alberta
        
        BANKERS
        
        The Toronto-Dominion Bank
        
        Bank of Montreal
        
        Canadian Imperial Bank
        of Commerce
        
        Royal Bank of Canada
        
        The Bank of Nova Scotia
        
        National Bank of Canada
        
        Alberta Treasury Branches
        
        HSBC Bank Canada
        
        La Caisse Centrale Desjardins
        du Québec
        
        Wells Fargo Bank N.A.,
        Canadian Branch
        
        Bank of America N.A., Canada
        Branch
        
        BNP Paribas, Canada Branch
        
        Citibank N.A., Canadian
        Branch - Citibank Canada
        
        JPMorgan Chase Bank, N.A.,
        Toronto Branch
        
        Union Bank, Canada Branch
        
        Canadian Western Bank
        
        Goldman Sachs Lending Partners
        LLC
        
        EVALUATION ENGINEERS
        
        GLJ Petroleum Consultants
        Ltd.
        Calgary, Alberta
        
        LEGAL COUNSEL
        
        Norton Rose Fulbright Canada
        LLP
        Calgary, Alberta
        
        TRANSFER AGENT
        
        Computershare Trust Company
        of Canada
        
        STOCK EXCHANGE
        LISTINGS
        
        The Toronto Stock Exchange
        (“VET”)
        The
        New York Stock Exchange (“VET”)
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