EXHIBIT 99.1










Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




TABLE OF CONTENTS



|GLOSSARY OF TERMS                                               | 4 
|--------------------------------------------------------------- | --
|Conventions                                                     | 6 
|Abbreviations                                                   | 6 
|Conversion                                                      | 6 
|SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS               | 7 
|PRESENTATION OF OIL AND GAS RESERVES AND PRODUCTION INFORMATION | 8 
|ContingentResources                                             | 8 
|NON-GAAP MEASURES                                               | 8 
|VERMILION ENERGY inc.                                           | 9 
|General                                                         | 9 
|Organizational Structure of the Company                         | 9 
|Summary Description of the Business                             | 11
|Three Year History of Vermilion                                 | 11
|NARRATIVE DESCRIPTION OF THE BUSINESS                           | 13
|Business Objectives                                             | 13
|Description of Properties                                       | 13
|STATEMENT OF RESERVES DATA AND OTHER OIL AND GAS INFORMATION    | 16
|Reserves and Future Net Revenue                                 | 16
|Reconciliations of Changes in Reserves                          | 23
|Undeveloped Reserves                                            | 32
|Timing of Initial Undeveloped Reserves Assignment               | 32
|Future Development Costs                                        | 33
|Oil and Gas Properties and Wells                                | 34
|Costs Incurred                                                  | 35
|Acreage                                                         | 35
|Exploration and Development Activities                          | 36
|Properties with No Attributed Reserves                          | 37
|Tax Information                                                 | 37
|Production Estimates                                            | 38
|Production History                                              | 39
|Marketing                                                       | 42
|ADDITIONAL INFORMATION RESPECTING VERMILION ENERGY INC.         | 44
|Management                                                      | 44
|Common Shares                                                   | 46
|Cash Dividends                                                  | 47
|Premium Dividend and Reinvestment Plan                          | 47
|Shareholder Rights Plan                                         | 49
|AUDIT COMMITTEE MATTERS                                         | 53
|Audit Committee Charter                                         | 53
|Composition of the Audit Committee                              | 53
|External Audit Service Fees                                     | 53
|MARKET FOR PRICE RANGE AND TRADING VOLUME OF SECURITIES         | 54
|CREDIT RATINGs                                                  | 54
|Vermilion Rating                                                | 55
|CONFLICTS OF INTEREST                                           | 55
|INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS      | 55
|LEGAL PROCEEDINGS                                               | 55
|MATERIAL CONTRACTS                                              | 55
|INTERESTS OF EXPERTS                                            | 55
|TRANSFER AGENT AND REGISTRAR                                    | 55



2


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




|RISK
    FACTORS                                                                                               | 56
|-------------------------------------------------------------------------------------------------------------- | --
|Reserve
    Estimates                                                                                          | 56
|Uncertainty
    of Contingent Resource Estimates                                                               | 56
|Volatility
    of Oil and Natural Gas Prices                                                                   | 56
|Changes
    in Legislation                                                                                     | 56
|Government
    Regulations                                                                                     | 57
|Competition                                                                                                    | 57
|Operational
    Matters                                                                                        | 57
|Environmental
    Concerns                                                                                     | 58
|Kyoto
    Protocol and Carbon Tax                                                                              | 58
|Discretionary
    Nature of Dividends                                                                          | 58
|Debt
    Service                                                                                               | 59
|Changes
    in Income Tax Laws                                                                                 | 59
|Depletion
    of Reserves                                                                                      | 59
|Net
    Asset Value                                                                                            | 59
|Volatility
    of Market Price of Common Shares                                                                | 59
|Variations
    in Interest Rates and Foreign Exchange Rates                                                    | 59
|Increase
    in Operating Costs or Decline in Production Level                                                 | 60
|Acquisition
    Assumptions                                                                                    | 60
|Failure
    to Realize Anticipated Benefits of Prior Acquisitions                                              | 60
|Additional
    Financing                                                                                       | 60
|Potential
    Conflicts of Interest                                                                            | 60
|Accounting
    Adjustments                                                                                     | 60
|Market
    Accessibility                                                                                       | 61
|ADDITIONAL
    INFORMATION                                                                                     | 61
|                                                                                                               |   
|APPENDIX
    A                                                                                                 |   
|CONTINGENT
    RESOURCES                                                                                       | 62
|                                                                                                               |   
|APPENDIX
    B                                                                                                 |   
|REPORT
    ON RESERVES DATA BY INDEPENDENT QUALIFIED RESERVES EVALUATOR OR AUDITOR (FORM 51-101F2)             | 65
|REPORT
    ON contingent resources DATA BY INDEPENDENT QUALIFIED RESERVES EVALUATOR OR AUDITOR (form 51-101F2) | 66
|                                                                                                               |   
|APPENDIX
    C                                                                                                 |   
|REPORT
    OF MANAGEMENT AND DIRECTORS ON RESERVES DATA AND OTHER INFORMATION (FORM 51-101F3)                  | 67
|                                                                                                               |   
|APPENDIX
    D                                                                                                 |   
|TERMS OF REFERENCE
    FOR THE AUDIT COMMITTEE                                                                 | 68



3


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




GLOSSARY OF TERMS



In addition to terms defined elsewhere in this annual information
form, the following are defined terms used in this annual information form:



“2003 Arrangement”means
the plan of arrangement under the ABCA involving the Trust, Vermilion Resources Ltd., Clear Energy Inc. and Vermilion Acquisition
Ltd., which was completed on January 22, 2003;



“ABCA” means the Business
Corporations Act(Alberta), R.S.A. 2000, c. B-9, as amended, including the regulations promulgated thereunder;



“AGCA”means Alberta Gas
Cost Allowance;



“AIF” means Annual Information
Form;



“affiliate” when used to
indicate a relationship with a person or company, has the same meaning as set forth in the Securities Act(Alberta);



“board of directors” or “board”
means the board of directors of Vermilion;



“CGUs”means cash generating
units and based on management’s judgement, represents the lowest level at which there is identifiable cash inflows that are
largely independent of the cash inflows of other groups of assets or properties;



“common shares” means a common
share in the capital of the Company;



“contingent resources” are
those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established
technology or technology under development, but which are not currently considered to be commercially recoverable due to one or
more contingencies;



“control” means, with respect
to control of a body corporate by a person, the holding (other than by way of security) by or for the benefit of that person of
securities of that body corporate to which are attached more than 50% of the votes that may be cast to elect directors of the body
corporate (whether or not securities of any other class or classes shall or might be entitled to vote upon the happening of any
event or contingency) provided that such votes, if exercised, are sufficient to elect a majority of the board of directors of the
body corporate;



“Conversion Arrangement”
means the plan of arrangement effected on September 1, 2010 under section 193 of the ABCA pursuant to which the Trust converted
from an income trust to a corporate structure;



“Depletion units” means groups
of assets or properties that are within a specific production area and have similar economic lives. Depletion units represent the
lowest level of disaggregation for which Vermilion accumulates costs for the purposes of calculating and recording depletion;



“dividend” means a dividend
paid by Vermilion in respect of the common shares, expressed as an amount per common share;



“Dividend Payment Date”means
any date that Dividends are paid to Shareholders, generally being the 15th day of the calendar month following the determination
of a Dividend Record Date;



“Dividend Record Date”means
the last day of each calendar month or such other date as may be determined from time to time by the Company;



“GLJ”
means GLJ Petroleum Consultants Ltd., independent petroleum engineering consultants of Calgary, Alberta;



“GLJ Report” means the independent
engineering reserves evaluation of certain oil, NGL and natural gas interests of the Company prepared by GLJ dated February 8,
2016 and effective December 31, 2015;



“IFRS” means International
Financial Reporting Standards, as issued by the International Accounting Standards Board;



“Income Tax Act” or “Tax
Act” means the Income Tax Act (Canada), R.S.C. 1985, c. 1. (5th Supp.), as amended, including the regulations
promulgated thereunder;



“Meeting” means the annual
meeting of Shareholders of the Company to be held on May 6, 2016 (or, if adjourned, such other date on which the meeting is held);



“NYSE”means New York Stock
Exchange;



4


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




“PNG” means Petroleum and
Natural Gas properties and equipment;



“PRRT” means Petroleum Resource
Rent Tax, a profit based tax levied on petroleum projects in Australia;



“Plan” means the Premium
DividendTM and Dividend Reinvestment Plan of the Company dated effective February 27, 2015, as amended or supplemented
from time to time;



“Rights Plan” means the Shareholder
Rights Plan of the Company;



“Senior Unsecured Notes”
means the $225 million aggregate principal amount of five year senior unsecured notes of the Company issued February 10, 2011;



“Shareholders”means holders
from time to time of the Company’s common shares;



“Shareholder Rights Plan Agreement”
means the Shareholder Rights Plan Agreement dated September 1, 2010 between the Company and Computershare Trust Company of Canada
establishing the Rights Plan, as amended and restated as of May 1, 2013 and as amended or supplemented from time to time;



“subsidiary” means, in relation
to any person, any body corporate, partnership, joint venture, association or other entity of which more than 50% of the total
voting power of common shares or units of ownership or beneficial interest entitled to vote in the election of directors (or members
of a comparable governing body) is owned or controlled, directly or indirectly, by such person;



“TSX” means the Toronto Stock
Exchange;



“Trust”means Vermilion Energy
Trust, an unincorporated open-ended investment trust governed by the laws of the Province of Alberta that was dissolved and ceased
to exist pursuant to the Conversion Arrangement;



“Trust Unit” means units
in the capital of the Trust;



“Unitholders” means former
unitholders of the Trust;



“Vermilion”or the“Company”
means Vermilion Energy Inc. and where context allows, its consolidated business enterprise, except that a reference to “Vermilion”
prior to the date of the Conversion Arrangement means the consolidated business enterprise of the Trust, unless otherwise indicated;
and



“VRL” means Vermilion Resources
Ltd., previously a subsidiary of the corporation.



5


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Conventions



Unless otherwise indicated, references herein
to "$" or "dollars" are to Canadian dollars. All financial information herein has been presented in Canadian
dollars in accordance with IFRS.



Abbreviations



|Oil and Natural Gas Liquids
|---------------------------
|bbl                        
|Mbbl                       
|bbl/d                      
|NGLs                       
|Natural Gas                
|Mcf                        
|MMcf                       
|Mcf/d                      
|MMcf/d                     
|MMBtu                      
|Other                      
|API                        
|°API                       
|                           
|boe                        
|M$                         
|MM$                        
|Mboe                       
|MMboe                      
|WTI                        
|                           
|TTF                        
|                           
|NBP                        
|                           



Conversion



The following table sets forth certain standard
conversions from Standard Imperial Units to the International System of Units (or metric units).



|To Convert From | To           | Multiply By
|--------------- | ------------ | -----------
|Mcf             | Cubic metres | 28.174     
|Cubic metres    | Cubic feet   | 35.494     
|bbls            | Cubic metres | 0.159      
|Cubic metres    | bbls oil     | 6.290      
|Feet            | Metres       | 0.305      
|Metres          | Feet         | 3.281      
|Miles           | Kilometres   | 1.609      
|Kilometres      | Miles        | 0.621      
|Acres           | Hectares     | 0.405      
|Hectares        | Acres        | 2.471      



6


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




SPECIAL NOTE REGARDING FORWARD LOOKING
STATEMENTS



Certain statements included or incorporated
by reference in this annual information form 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 annual information
form may include, but are not limited to:



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

| | · | business strategies and objectives;
| | - | -----------------------------------

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

| | · | petroleum and natural gas sales;
| | - | --------------------------------

| | · | future production levels (including the
timing thereof) and rates of average annual production growth, estimated contingent resources;
| | - | --------------------------------------------------------------------------------------------------------------------------------------

| | · | exploration and development plans;
| | - | ----------------------------------

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

| | · | operating and other expenses, including
the payment of future dividends;
| | - | ------------------------------------------------------------------------

| | · | royalty and income tax rates;
| | - | -----------------------------

| | · | the timing of regulatory proceedings and
approvals; and
| | - | -------------------------------------------------------

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



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



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

| | · | the ability of the Company to market crude
oil, natural gas liquids and natural gas successfully to current and new customers;
| | - | ------------------------------------------------------------------------------------------------------------------------------

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

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

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

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

| | · | future crude oil, natural gas liquids and
natural gas prices; and
| | - | -----------------------------------------------------------------

| | · | Management’s expectations relating
to the timing and results of development activities.
| | - | ---------------------------------------------------------------------------------------



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



| | · | the ability of management to execute its
business plan;
| | - | -------------------------------------------------------

| | · | the risks of the oil and gas industry,
both domestically and internationally, such as operational risks in exploring for, developing and producing crude oil, natural
gas liquids and natural gas;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | risks and uncertainties involving geology
of crude oil, natural gas liquids and natural gas deposits;
| | - | -----------------------------------------------------------------------------------------------------

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

| | · | the uncertainty of reserves estimates and
reserves life and estimates of contingent resources and associated expenditures;
| | - | --------------------------------------------------------------------------------------------------------------------------

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

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

| | · | the Company's ability to enter into or
renew leases on acceptable terms;
| | - | ------------------------------------------------------------------------

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

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

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

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

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

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

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

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

| | · | other risks and uncertainties described
elsewhere in this annual information form or in the Company's other filings with Canadian securities authorities.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------



7


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




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



PRESENTATION OF OIL AND GAS RESERVES
AND PRODUCTION INFORMATION



All oil and natural gas reserve information
contained in this annual information form is derived from the GLJ Report and has been prepared and presented in accordance with
the Canadian Oil and Gas Evaluation Handbook (“COGEH”) and National Instrument 51-101 Standards
of Disclosure for Oil and Gas Activities ("NI 51-101"). The actual oil and natural gas reserves and future production
will be greater than or less than the estimates provided in this annual information form. The estimated future net revenue from
the production of the disclosed 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 of natural gas to one barrel
of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.



Contingent Resources



"Contingent resources" are
not, and should not be confused with, petroleum and natural gas reserves. "Contingent resources" are defined in COGEH
as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established
technology or technology under development, but which are not currently considered to be commercially recoverable due to one or
more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters
or a lack of markets. It is also appropriate to classify as contingent resource the estimated discovered recoverable quantities
associated with a project in the early evaluation stage.



The primary contingencies which currently
prevent the classification of Vermilion’s contingent resource as reserves include but are not limited to:



| | · | preparation of firm development plans, including determination of the specific scope and timing of projects;
| | - | ------------------------------------------------------------------------------------------------------------

| | · | project sanction;
| | - | -----------------

| | · | access to capital markets;
| | - | --------------------------

| | · | Shareholder and regulatory approvals;
| | - | -------------------------------------

| | · | access to required services and field development infrastructure;
| | - | -----------------------------------------------------------------

| | · | oil and natural gas prices in Canada and internationally in jurisdictions in which Vermilion operates;
| | - | ------------------------------------------------------------------------------------------------------

| | · | demonstration of economic viability;
| | - | ------------------------------------

| | · | future drilling program and testing results;
| | - | --------------------------------------------

| | · | further reservoir delineation and studies;
| | - | ------------------------------------------

| | · | facility design work;
| | - | ---------------------

| | · | limitations to development based on adverse topography or other surface restrictions; and
| | - | -----------------------------------------------------------------------------------------

| | · | the uncertainty regarding marketing and transportation of petroleum from development areas.
| | - | -------------------------------------------------------------------------------------------



There is no certainty that it will be
commercially viable to produce any portion of the contingent resources or that Vermilion will produce any portion of the volumes
currently classified as contingent resources. The estimates of contingent resources involve implied assessment, based on certain
estimates and assumptions, that the contingent resources described exists in the quantities predicted or estimated and that the
contingent resources can be profitably produced in the future. The net present value of the future net revenue from the contingent
resources does not necessarily represent the fair market value of the contingent resources. Actual contingent resources (and
any volumes that may be reclassified as reserves) and future production therefrom may be greater than or less than the estimates
provided herein.



NON-GAAP MEASURES



This annual information form includes non-GAAP
measures as further described herein. Management of the Company believes these non-GAAP measures are a useful tool in analyzing
operating performance. These measures do not have standardized meanings prescribed by GAAP and are not disclosed in Vermilion’s
audited consolidated financial statements and, therefore, may not be comparable with the calculations of similar measures for other
entities.



“Cash dividends per share” represents
actual cash dividends paid per share by the Company during the relevant periods.



8


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




“Net dividends” is calculated as
dividends declared for a given period less proceeds received by Vermilion pursuant to the dividend reinvestment plan. Dividends
both before and after the dividend reinvestment plan are reviewed by management and are assessed as a percentage of fund flows
from operations to analyze how much of the cash that is generated by Vermilion is being used to fund dividends.



9


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




VERMILION ENERGY INC.



General



Vermilion Energy Inc. is the successor to the
Trust, following the completion of the conversion of the Trust from an income trust to a corporate structure by way of a court
approved plan of arrangement under the ABCA on September 1, 2010. Pursuant to the Conversion Arrangement, Unitholders exchanged
their Trust Units for common shares of the Company on a one-for-one basis and holders of exchangeable shares of VRL received 1.89344
common shares for each exchangeable share held.



References to “Vermilion” prior
to the date of the Conversion Arrangement are generally references to the consolidated business enterprise of the Trust prior to
the date of the Conversion Arrangement, whose business the Company is a successor to as a result of the Conversion Arrangement,
as accounted for by “continuity-of-interest” accounting.



Vermilion Energy Inc. was incorporated on July
21, 2010 pursuant to the provisions of the ABCA for the purpose of facilitating the Conversion Arrangement.  The registered
and head office of Vermilion Energy Inc. is located at Suite 3500, 520 – 3rd Avenue S.W., Calgary, Alberta, T2P 0R3.



Organizational Structure of the Company



The following diagram describes the intercorporate
relationships among the Company and each of its material subsidiaries, where each principal subsidiary was incorporated or formed
and the percentage of votes attaching to all voting securities of each subsidiary beneficially owned directly or indirectly by
Vermilion. Reference should be made to the appropriate sections of this annual information form for a complete description of the
structure of the Company.







Note:

| | (1) | Vermilion Energy Ireland Limited is the Irish Branch of a Cayman Islands incorporated company.
| | --- | ----------------------------------------------------------------------------------------------



10


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Summary Description of the Business



Vermilion Energy Inc.



The Company is actively engaged in the business
of oil and natural gas exploitation, development, acquisition and production in Canada, France, Ireland, the Netherlands, Germany,
Australia and the United States. The Company’s long-term business plan is to expand its portfolio of organic growth opportunities
and pursue its strategic plan that targets modest annual average production growth while providing shareholders with a reliable
income stream. Vermilion continues to pursue new venture initiatives which target the identification and capture of meaningful
conventional and unconventional resource related exploration exposure in North America, Europe and Australia. Where possible, the
Company will seek to expand its reserve base through the selective addition of high-quality, long-life conventional reserves with
low risk development opportunities.



Shareholders receive monthly dividends of the
cash flow generated by Vermilion as declared payable by the board of directors of the Company. The Company currently employs a
strategy which: (i) provides Shareholders with a competitive annual cash-on-cash yield through monthly cash dividends, (ii) ensures
that Vermilion's existing assets are maintained at a level that provides sustainable ongoing cash flow, and (iii) continues
to expand the business of the Company through the development of growth opportunities that are intended to provide long-term stable
cash flows and be accretive to the existing Shareholders. The Company intends to finance acquisitions through debt financing and,
when necessary, the issuance of additional common shares from treasury, while maintaining prudent leverage.



Three Year History of Vermilion



The following describes the development of Vermilion's
business over the last three completed financial years. None of the acquisitions described below constituted a “significant
acquisition” within the meaning of applicable securities laws.



In order to consolidate its Canadian subsidiaries,
on January 1, 2013, Vermilion amalgamated with two of its wholly-owned subsidiaries, 1209974 Alberta Ltd. and Vermilion Resources
Ltd. Vermilion Energy Inc. was the resulting entity upon completion of the amalgamations. As a result of the forgoing amalgamations,
Vermilion Energy Inc. became the managing partner of Vermilion Resources.



On October 11, 2013, Vermilion announced the
completion of the acquisition from Northern Petroleum Plc. of 100% of the shares of its subsidiary Northern Petroleum Nederland
B.V. ("NPN") for approximately $27.5 million with an effective date of January 1, 2013. The acquisition included interests
in nine concessions, including six onshore licences in production or development, three onshore exploration licenses, and one offshore
production license ("P12") in the Netherlands (the "Assets"). Four licenses are located in the northeastern
region, in close proximity to Vermilion's existing concessions and the remaining five onshore licenses are located in the southwestern
region of the Netherlands. Vermilion assumed operatorship of all the acquired Assets following closing of the Acquisition, with
the exception of the offshore license P12 in which Vermilion holds a 23.6% non-operated interest. The Assets cover approximately
298,500 net acres, of which approximately 98 percent is undeveloped.



On November 6, 2013, Vermilion announced
that it had entered into a purchase and sale agreement with GDF SUEZ E&P Deutschland GmbH (“GDF SUEZ”), (an affiliate
of GDF SUEZ S.A., a publicly traded, French multinational utility) whereby Vermilion, through a wholly-owned subsidiary, agreed
to acquire GDF SUEZ’s 25% interest in four producing natural gas fields and a surrounding exploration license located in
northwest Germany. The acquisition from GDF SUEZ was completed in February 2014, and was funded with cash balances on hand.



On November 7, 2013, Vermilion announced that
the board of directors approved a 7.5% increase to its monthly dividend to $0.215 per share from $0.20 per share. The increase
became effective for the January 2014 dividend payable on February 18, 2014. This marked the third increase to Vermilion’s
monthly dividend, and the second annual increase.



In Q1 2014, Vermilion was awarded the Ijsselmuiden
exploration concession in the Netherlands, which consists of approximately 66,300 net undeveloped acres (60% working interest).



In May 2014, we executed the Battonya South
concession in Hungary with the Hungarian Ministry of National Development. The concession consists of 116,000 gross acres located
in the southern part of Hungary.  The term of the concession is for 20 years, subject to continuation of development in a
manner acceptable to both parties.



In early 2014, we informed the Moroccan government
of our intention to relinquish our rights to the Haouz block in central Morocco.  Based on our evaluation of seismic data
we concluded that, due to the structural complexity of the block, we would be unable to pursue a definitive appraisal and exploration
program that would fit within the constraints of our predetermined new venture capital and risk parameters.  The relinquishment
terminates our activities in Morocco after cumulative spending of $0.9 million to evaluate the 2.3 million acre block.



11


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




On April 29, 2014, Vermilion announced the completion
of the acquisition of Elkhorn Resources Inc., a private S.E. Saskatchewan producer, for total consideration of approximately $427
million. Total consideration comprised $180 million of cash, the assumption of approximately $42 million of debt, and the issuance
of 2.8 million common shares of Vermilion valued at approximately $205 million (based on the closing price per Vermilion common
share of $72.50 on the Toronto Stock Exchange on April 29, 2014). The assets consist of high netback, light crude oil producing
assets in the Northgate region of southeast Saskatchewan and include approximately 57,000 net acres of land (approximately 80%
undeveloped), seven oil batteries, and preferential access to 50% or greater capacity at a solution gas facility.



On May 22, 2014, Vermilion announced the completion
of tunnel boring operations beneath Sruwaddacon Bay, related to the Corrib project in Ireland. The tunnel will serve as a conduit
for the gas pipeline between the Bellanaboy gas processing facility to the offshore pipeline landing valve at Glengad.



On November 10, 2014, Vermilion announced that
it had acquired approximately 68,000 acres of land (98% undeveloped) in the Powder River Basin of northeastern Wyoming for approximately
$11.1 million.



On June 3, 2015, Vermilion was conditionally
awarded four exploration blocks in northeast Croatia near the Hungarian border, by the Croatian Hydrocarbon Agency. This award
remains subject to successful execution of a definitive contract acceptable to both Vermilion and the Government of the Republic
of Croatia. The four exploration blocks consist of approximately 2.35 million gross acres with a substantial portion of the acreage
located near existing crude oil and natural gas fields. The initial 5-year exploration period consists of two phases with an option
to relinquish the blocks following the initial 3-year phase.



On July 27, 2015, Vermilion entered into a significant
farm-in agreement in northwest Germany. The farm-in provides Vermilion with participating interest in 19 onshore exploration licenses,
comprising approximately 850,000 net undeveloped acres in the North German Basin, in exchange for carrying 50% of the costs associated
with the drilling and testing of six net exploration wells over the next five years. The agreement also provides for the transfer
to Vermilion of operatorship for the exploration phase and data spanning these lands. The farm-in remains subject to customary
conditions and regulatory approvals.



On December 29, 2015 Vermilion announced that
Shell E&P Ireland Limited ("Shell"), operator of the Corrib project, received the final remaining consent required
for production from the office of Ireland's Minister for Communications, Energy and Natural Resources. Following this, on December
30, 2015 natural gas began to flow from the Corrib gas project in Ireland.



As at January 31, 2016, Vermilion had 516 full
time employees of which 188 employees were located in its Calgary head office, 57 employees in its Canadian field offices, 156
employees in France, 63 employees in the Netherlands, 34 employees in Australia, 9 employees in the United States, 8 employees
in Germany and 1 employee in Hungary.



12


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




NARRATIVE DESCRIPTION OF THE BUSINESS



Business Objectives



Vermilion is an oil-leveraged energy
producer that seeks to create value through the acquisition, exploration, development and optimization of producing properties
in North America, Europe and Australia. The Company’s long-term business model targets annual organic production growth while
providing shareholders with a reliable income stream. Vermilion is targeting growth in production primarily through the exploitation
of light crude oil and liquids-rich natural gas conventional resource plays in Western Canada and the United States, the exploration
and development of high impact natural gas opportunities in the Netherlands and Germany, and through drilling and workover programs
targeting oil in France and Australia. Vermilion also holds an 18.5% working interest in the Corrib gas field in Ireland. In addition,
Vermilion continues to pursue new venture initiatives which target the identification and capture of meaningful conventional and
unconventional resource related development and exploration exposure in North America, Europe and Australia. Where possible, the
Company will seek to expand its reserve base through the selective addition of high-quality, long-life reserves with low risk development
opportunities.



In reviewing potential participations
or acquisitions, Vermilion will consider a number of factors, including: (a) the present value of the future revenue from
such properties from the proved producing, total proved and proved plus probable reserves; (b) the amount of potential for
additional reservoir development; (c) whether sufficient infrastructure exists in the prospect to provide for increased activity;
(d) the cost of any potential development; (e) investments in properties that exhibit medium to long-life reserves and
stable production base; and (f) the ability of Vermilion to enhance the value of acquired properties through additional exploitation
efforts and additional development drilling. The board of directors of Vermilion may, in its discretion, approve asset or corporate
acquisitions or investments that do not conform to these guidelines based upon the board's consideration of the qualitative aspects
of the subject properties including risk profile, technical upside, reserve life, asset quality and the Company's business prospects.



Description of Properties



The following is a description of the oil and
natural gas properties, facilities and installations in which Vermilion has an interest and that are material to Vermilion's operations
and exploration activities. We manage our business through our Calgary head office and our international business unit offices.



| | · | 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 offshore Corrib natural gas field.
| | - | -----------------------------------------------------------------------------------------------------------

| | · | Australia business unit: Relates to operations
on 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.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The production numbers stated refer to
Vermilion's working interest share before deduction of Crown, freehold and other royalties. Reserve amounts are stated, before
deduction of royalties, as at December 31, 2015, based on forecast costs and price assumptions as evaluated in the GLJ Report.



Canada Business Unit



Vermilion’s production in Canada
is located primarily in three areas of Alberta: Drayton Valley, Slave Lake and Central Alberta and the Northgate Region of southeast
Saskatchewan. Vermilion's main gas producing areas are Drayton Valley and Central Alberta, while Northgate, Slave Lake and the
Cardium light crude oil play in Drayton Valley are the main oil producing areas.



Vermilion holds 71% working interest
in 460,400 (326,500 net) acres of developed land, and 88% working interest in 609,100 (537,000 net) acres of undeveloped land.
Vermilion had 654 (464 net) producing natural gas wells and 626 (453 net) producing oil wells in Canada as at December 31, 2015.



Vermilion owns and operates three natural
gas plants and has an ownership interest in seven additional plants, resulting in combined gross processing capacity of over 80
MMcf/d. In addition, Vermilion has capacity of over 25,000 bbl/d of oil in eleven operated oil batteries including a 15,000 bbl/d
oil battery that handles Cardium production (which commenced operations August 1, 2011).



13


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Risks and uncertainties associated with
weather conditions can shorten the winter drilling season and can impact the spring and summer drilling programs, potentially resulting
in increased costs or reduced production.



For a discussion of the competitive conditions
affecting Vermilion’s business, refer to "Competition" in the Risk Factors section of this AIF.



For the year ended December 31, 2015,
production in Canada averaged approximately 71.6 MMcf/d of natural gas and 13,658 bbl/d of light crude oil, medium crude oil and
NGLs. Sales of natural gas in 2015 were approximately $72.7 million (2014 - $92.1 million) and sales from light crude oil, medium
crude oil and NGLs were approximately $247.3 million (2014 - $445.7 million).



The GLJ Report assigned 71,163 Mboe of
total proved reserves and 121,717 Mboe of proved plus probable reserves to Vermilion's properties located in Canada.



France Business Unit



Vermilion's main producing areas in France
are located in the Aquitaine Basin which is southwest of Bordeaux, France and in the Paris Basin, located just east of Paris. Vermilion's
assets in France are primarily oil producing properties. The two major fields in the Paris Basin area are Champotran and Chaunoy.
The two major fields in the Aquitaine Basin are Parentis and Cazaux. Vermilion operates 13 oil batteries and 12 single well batteries
with current throughput of more than 12,000 bbl/d. Given the legacy nature of these assets, the throughput capability of these
batteries exceeds any projected future requirements. Vermilion holds 96% working interest in 218,100 (208,900 net) acres of developed
land and 100% working interest in 374,600 (374,600 net) acres of undeveloped land in the Aquitaine and Paris Basins. Vermilion
had 342 (337 net) producing oil wells and three (three net) producing gas wells in France as at December 31, 2015.



Risks and uncertainties associated with
well approvals can impact the drilling programs, potentially resulting in delays or reduced production.

For a discussion of the competitive conditions
affecting Vermilion business, refer to "Competition" in the Risk Factors section of this AIF.



For the year ended December 31, 2015,
production in France averaged approximately 12,267 bbl/d of light crude oil and medium crude oil and 1.0 MMcf/d of natural gas.
Sales from light crude oil and medium crude oil in 2015 were approximately $280.5 million (2014 - $431.3 million) and sales of
natural gas were approximately $0.9 million (due to the closure of a third party facility, there were no sales of natural gas in
2014).



The GLJ Report assigned 42,027 Mboe of
total proved reserves and 63,612 Mboe of proved plus probable reserves to Vermilion's properties located in France.



Netherlands Business Unit



Vermilion's Netherlands assets consist
of 24 onshore concessions and two offshore concessions. Production consists solely of natural gas with a small amount of related
condensate. Vermilion’s total position in the Netherlands covers 1,492,500 (814,600 net) acres at an average 55% working
interest, of which 95% is undeveloped, and 52 (35 net) producing gas wells as at December 31, 2015.



Risks and uncertainties associated with
drilling and production permits can impact drilling programs and production timing, potentially resulting in increased costs or
reduced production.



For a discussion of the competitive conditions
affecting Vermilion’s business, refer to "Competition" in the Risk Factors section of this AIF.



For the year ended December 31, 2015,
Vermilion's production in the Netherlands averaged 99 bbl/d of NGLs and 44.8 MMcf/d of natural gas. Sales in 2015 of natural gas
were approximately $127.3 million (2014 - $121.2 million) and sales from NGLs were approximately $1.8 million (2014 - $2.6 million).



The GLJ Report assigned 8,122 Mboe of
total proved reserves and 16,320 Mboe of proved plus probable reserves to Vermilion's properties located in the Netherlands.



Germany Business Unit



Vermilion’s Germany assets consist
of 25% interest in four producing natural gas fields and a surrounding exploration license located in northwest Germany. Vermilion
also holds a 0.4% equity interest in Erdgas Munster GmbH ("EGM"), a joint venture created in 1959 to jointly transport,
process, and market gas in northwest Germany. This transportation interest allows for our proportionate share of produced volumes
to be processed, blended, and transported to designated gas consumers through the EGM network of approximately 2,000 kilometres
of pipeline. Vermilion’s interest in Germany includes 31,400 (7,800 net) developed acres, 285,300 (153,400 net) undeveloped
acres, and 15 (four net) producing gas wells as at December 31, 2015.



14


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




For the year ended December 31, 2015,
production in Germany averaged approximately 15.8 MMcf/d of natural gas. Sales of natural gas in 2015 were approximately $41.4
million (2014 - $42.0 million).



The GLJ Report assigned 5,250 Mboe of
total proved reserves and 8,250 Mboe of proved plus probable reserves to Vermilion's properties located in Germany.



Ireland Business Unit



Vermilion holds an 18.5% non-operating
interest in the offshore Corrib gas field located off the northwest coast of Ireland. Vermilion acquired its 18.5% working interest
in the project on July 30, 2009, comprised of six offshore wells, both offshore and onshore pipeline segments as well as a natural
gas processing facility. At the time of the acquisition most of the key components of the project, with the exception of the onshore
pipeline, were either complete or in the latter stages of development. In 2011, approvals and permissions were granted for the
onshore gas pipeline and tunneling commenced on December 16, 2012. On May 22, 2014, Vermilion announced the completion of tunnel
boring operations. On September 1, 2015, the project operator, Shell E&P Ireland Limited, declared the project operationally
ready for service. With the final regulatory consent received on December 29, 2015, gas began to flow from the Corrib project on
December 30, 2015. Production from Corrib is expected to rise over a period of approximately six months to a peak rate of approximately
58 MMcf (9,700 boe/d) net to Vermilion.



The GLJ Report assigned 17,637 Mboe
of total proved reserves and 25,538 Mboe of proved plus probable reserves to Vermilion's property located in Ireland.



Australia Business Unit



Vermilion's Australia assets consist
of a 100% operated interest in an offshore oil field located on Western Australia's northwest shelf. The platform has a current
producing capacity of 162,000 bbl/d of total fluid. Vermilion holds a 100% working interest in the Wandoo block, which is comprised
of 59,600 acres and 18 (18 net) motherbores as at December 31, 2015.



Western Australia’s northwest shelf
is subject to seasonal disruptions caused by cyclones. During cyclone season (December to March) the Company may have to reduce
production rates at its offshore facilities as a result of the inability to offload to tankers due to bad weather. Cyclones may
also cause production shut-ins due to the evacuation of staff or damage to equipment on the platform.



For a discussion of the competitive conditions
affecting Vermilion’s business, refer to "Competition" in the Risk Factors section of this AIF.



For the year ended December 31, 2015,
Vermilion's production in Australia averaged 6,454 bbl/d of light crude oil and medium crude oil. Sales in 2015 from light crude
oil and medium crude oil were approximately $162.8 million (2014 - $283.5 million).



The GLJ Report assigned 13,765 Mboe of
total proved reserves and 17,465 Mboe of proved plus probable reserves to Vermilion's property located in Australia.



United States Business Unit



Vermilion’s assets in the United
States include approximately 102,800 (90,700 net) acres of land in the Powder River basin of northeastern Wyoming, of which 98%
is undeveloped. Vermilion had five (four net) producing oil wells in the United States as at December 31, 2015.



For the year ended December 31, 2015,
Vermilion’s production in the United States averaged approximately 231 bbl/d of light crude oil and medium crude oil. Sales
from light crude oil and medium crude oil in 2015 were approximately $4.3 million (2014 - $1.3 million).



The GLJ Report assigned 2,742 Mboe of
total proved reserves and 7,988 Mboe of proved plus probable reserves to Vermilion's properties located in the United States.



15


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




STATEMENT OF RESERVES DATA AND OTHER OIL AND
GAS INFORMATION



Reserves and Future Net Revenue



The following is a summary of the oil and natural
gas reserves and the value of future net revenue of Vermilion as evaluated by GLJ in a report dated February 8, 2016 with an effective
date of December 31, 2015. Pricing used in the forecast price evaluations is set forth in the notes to the tables.



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



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



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



The Report on Reserves Data by Independent Qualified
Reserves Evaluator in Form 51-101F2 and the Report of Management and Directors on Oil and Gas Disclosure in Form 51-101F3 are contained
in Schedules "A" and "B", respectively.



The following tables provide reserves data
and a breakdown of future net revenue by component and product type using forecast prices and costs. For Canada, the tables
following include AGCA.



The following tables may not total due to rounding.



16


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




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



|                                          | Light
    Crude Oil & Medium 
Crude Oil | Heavy
    Oil        | Tight
    Oil           | Conventional
    Natural Gas
|----------------------------------------- | --------------------------------------- | -------------------- | ----------------------- | ----------------------------
|                                          | Gross
    (2)                           | Net
    (2)          | Gross
    (2)           | Net
    (2)                 
|                                          | (Mbbl)                                  | (Mbbl)               | (Mbbl)                  | (Mbbl)                      
|Proved Developed Producing(3)
    (5) (6) |                                         |                      |                         |                             
|Australia                                 | 11,465                                  | 11,465               | -                       | -                           
|Canada                                    | 13,528                                  | 11,785               | 9                       | 9                           
|France                                    | 34,866                                  | 32,097               | -                       | -                           
|Germany                                   | -                                       | -                    | -                       | -                           
|Ireland                                   | -                                       | -                    | -                       | -                           
|Netherlands                               | -                                       | -                    | -                       | -                           
|United
    States                         | 384                                     | 314                  | -                       | -                           
|Total
    Proved Developed Producing      | 60,243                                  | 55,661               | 9                       | 9                           
|                                          | Shale
    Gas                           | Coal
    Bed Methane | Natural
    Gas Liquids | BOE                         
|                                          | Gross(2)                                | Net(2)               | Gross(2)                | Net(2)                      
|                                          | (MMcf)                                  | (MMcf)               | (MMcf)                  | (MMcf)                      
|Proved
    Developed Producing(3) (5) (6) |                                         |                      |                         |                             
|Australia                                 | -                                       | -                    | -                       | -                           
|Canada                                    | 1,942                                   | 1,832                | 3,100                   | 2,883                       
|France                                    | -                                       | -                    | -                       | -                           
|Germany                                   | -                                       | -                    | -                       | -                           
|Ireland                                   | -                                       | -                    | -                       | -                           
|Netherlands                               | -                                       | -                    | -                       | -                           
|United
    States                         | -                                       | -                    | -                       | -                           
|                                          | 1,942                                   | 1,832                | 3,100                   | 2,883                       
|                                          | Light
    Crude Oil & Medium 
Crude Oil | Heavy
    Oil        | Tight
    Oil           | Conventional
    Natural Gas
|                                          | Gross(2)                                | Net(2)               | Gross(2)                | Net(2)                      
|                                          | (Mbbl)                                  | (Mbbl)               | (Mbbl)                  | (Mbbl)                      
|Proved Developed Non-Producing            |                                         |                      |                         |                             
|Australia                                 | -                                       | -                    | -                       | -                           
|Canada                                    | 1,032                                   | 940                  | -                       | -                           
|France                                    | 1,914                                   | 1,754                | -                       | -                           
|Germany                                   | -                                       | -                    | -                       | -                           
|Ireland                                   | -                                       | -                    | -                       | -                           
|Netherlands                               | -                                       | -                    | -                       | -                           
|United
    States                         | 313                                     | 254                  | -                       | -                           
|Total
    Proved Developed Non-Producing  | 3,259                                   | 2,948                | -                       | -                           
|                                          | Shale
    Gas                           | Coal
    Bed Methane | Natural
    Gas Liquids | BOE                         
|                                          | Gross(2)                                | Net(2)               | Gross(2)                | Net(2)                      
|                                          | (MMcf)                                  | (MMcf)               | (MMcf)                  | (MMcf)                      
|Proved Developed Non-Producing            |                                         |                      |                         |                             
|Australia                                 | -                                       | -                    | -                       | -                           
|Canada                                    | -                                       | -                    | 1,743                   | 1,643                       
|France                                    | -                                       | -                    | -                       | -                           
|Germany                                   | -                                       | -                    | -                       | -                           
|Ireland                                   | -                                       | -                    | -                       | -                           
|Netherlands                               | -                                       | -                    | -                       | -                           
|United
    States                         | -                                       | -                    | -                       | -                           
|Total
    Proved Developed Non-Producing  | -                                       | -                    | 1,743                   | 1,643                       
|                                          | Light
    Crude Oil & Medium
 Crude Oil | Heavy
    Oil        | Tight
    Oil           | Conventional
    Natural Gas
|                                          | Gross(2)                                | Net(2)               | Gross(2)                | Net(2)                      
|                                          | (Mbbl)                                  | (Mbbl)               | (Mbbl)                  | (Mbbl)                      
|Proved Undeveloped(3) (8)                 |                                         |                      |                         |                             
|Australia                                 | 2,300                                   | 2,300                | -                       | -                           
|Canada                                    | 8,411                                   | 7,357                | -                       | -                           
|France                                    | 3,941                                   | 3,693                | -                       | -                           
|Germany                                   | -                                       | -                    | -                       | -                           
|Ireland                                   | -                                       | -                    | -                       | -                           
|Netherlands                               | -                                       | -                    | -                       | -                           
|United
    States                         | 1,337                                   | 1,087                | -                       | -                           
|Total
    Proved Undeveloped              | 15,989                                  | 14,437               | -                       | -                           



17


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015






|                             | Shale
    Gas                          | Coal
    Bed Methane | Natural
    Gas Liquids | BOE                         
|---------------------------- | -------------------------------------- | -------------------- | ----------------------- | ----------------------------
|                             | Gross
    (2)                          | Net
    (2)          | Gross
    (2)           | Net
    (2)                 
|                             | (MMcf)                                 | (MMcf)               | (MMcf)                  | (MMcf)                      
|Proved Undeveloped           |                                        |                      |                         |                             
|Australia                    | -                                      | -                    | -                       | -                           
|Canada                       | -                                      | -                    | 3,367                   | 3,114                       
|France                       | -                                      | -                    | -                       | -                           
|Germany                      | -                                      | -                    | -                       | -                           
|Ireland                      | -                                      | -                    | -                       | -                           
|Netherlands                  | -                                      | -                    | -                       | -                           
|United
    States            | -                                      | -                    | -                       | -                           
|Total
    Proved Undeveloped | -                                      | -                    | 3,367                   | 3,114                       
|                             | Light
    Crude Oil & Medium Crude Oil | Heavy
    Oil        | Tight
    Oil           | Conventional
    Natural Gas
|                             | Gross(2)                               | Net
    (2)          | Gross(2)                | Net(2)                      
|                             | (Mbbl)                                 | (Mbbl)               | (Mbbl)                  | (Mbbl)                      
|Proved(3)                    |                                        |                      |                         |                             
|Australia                    | 13,765                                 | 13,765               | -                       | -                           
|Canada                       | 22,971                                 | 20,082               | 9                       | 9                           
|France                       | 40,721                                 | 37,544               | -                       | -                           
|Germany                      | -                                      | -                    | -                       | -                           
|Ireland                      | -                                      | -                    | -                       | -                           
|Netherlands                  | -                                      | -                    | -                       | -                           
|United
    States            | 2,034                                  | 1,655                | -                       | -                           
|Total
    Proved             | 79,491                                 | 73,046               | 9                       | 9                           
|                             | Shale
    Gas                          | Coal
    Bed Methane | Natural
    Gas Liquids | BOE                         
|                             | Gross(2)                               | Net
    (2)          | Gross(2)                | Net(2)                      
|                             | (MMcf)                                 | (MMcf)               | (MMcf)                  | (MMcf)                      
|Proved                       |                                        |                      |                         |                             
|Australia                    | -                                      | -                    | -                       | -                           
|Canada                       | 1,942                                  | 1,832                | 8,210                   | 7,640                       
|France                       | -                                      | -                    | -                       | -                           
|Germany                      | -                                      | -                    | -                       | -                           
|Ireland                      | -                                      | -                    | -                       | -                           
|Netherlands                  | -                                      | -                    | -                       | -                           
|United
    States            | -                                      | -                    | -                       | -                           
|Total
    Proved             | 1,942                                  | 1,832                | 8,210                   | 7,640                       
|                             | Light
    Crude Oil & Medium Crude Oil | Heavy
    Oil        | Tight
    Oil           | Conventional
    Natural Gas
|                             | Gross(2)                               | Net
    (2)          | Gross(2)                | Net(2)                      
|                             | (Mbbl)                                 | (Mbbl)               | (Mbbl)                  | (Mbbl)                      
|Probable
    (4)             |                                        |                      |                         |                             
|Australia                    | 3,700                                  | 3,700                | -                       | -                           
|Canada                       | 14,786                                 | 12,565               | 3                       | 3                           
|France                       | 21,325                                 | 19,814               | -                       | -                           
|Germany                      | -                                      | -                    | -                       | -                           
|Ireland                      | -                                      | -                    | -                       | -                           
|Netherlands                  | -                                      | -                    | -                       | -                           
|United
    States            | 3,818                                  | 3,131                | -                       | -                           
|Total
    Probable           | 43,629                                 | 39,210               | 3                       | 3                           



18


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




|                               | Shale
    Gas                           | Coal
    Bed Methane | Natural
    Gas Liquids | BOE                         
|------------------------------ | --------------------------------------- | -------------------- | ----------------------- | ----------------------------
|                               | Gross
    (2)                           | Net
    (2)          | Gross
    (2)           | Net
    (2)                 
|                               | (MMcf)                                  | (MMcf)               | (MMcf)                  | (MMcf)                      
|Probable                       |                                         |                      |                         |                             
|Australia                      | -                                       | -                    | -                       | -                           
|Canada                         | 475                                     | 447                  | 4,917                   | 4,628                       
|France                         | -                                       | -                    | -                       | -                           
|Germany                        | -                                       | -                    | -                       | -                           
|Ireland                        | -                                       | -                    | -                       | -                           
|Netherlands                    | -                                       | -                    | -                       | -                           
|United
    States              | -                                       | -                    | -                       | -                           
|Total
    Probable             | 475                                     | 447                  | 4,917                   | 4,628                       
|                               | Light
    Crude Oil & Medium 
Crude Oil | Heavy
    Oil        | Tight
    Oil           | Conventional
    Natural Gas
|                               | Gross(2)                                | Net(2)               | Gross(2)                | Net(2)                      
|                               | (Mbbl)                                  | (Mbbl)               | (Mbbl)                  | (Mbbl)                      
|Proved Plus Probable(3) (4)    |                                         |                      |                         |                             
|Australia                      | 17,465                                  | 17,465               | -                       | -                           
|Canada                         | 37,757                                  | 32,647               | 12                      | 12                          
|France                         | 62,046                                  | 57,358               | -                       | -                           
|Germany                        | -                                       | -                    | -                       | -                           
|Ireland                        | -                                       | -                    | -                       | -                           
|Netherlands                    | -                                       | -                    | -                       | -                           
|United
    States              | 5,852                                   | 4,786                | -                       | -                           
|Total
    Proved Plus Probable | 123,120                                 | 112,256              | 12                      | 12                          
|                               | Shale
    Gas                           | Coal
    Bed Methane | Natural
    Gas Liquids | BOE                         
|                               | Gross(2)                                | Net(2)               | Gross(2)                | Net(2)                      
|                               | (MMcf)                                  | (MMcf)               | (MMcf)                  | (MMcf)                      
|Proved Plus Probable(3) (4)    |                                         |                      |                         |                             
|Australia                      | -                                       | -                    | -                       | -                           
|Canada                         | 2,417                                   | 2,279                | 13,127                  | 12,268                      
|France                         | -                                       | -                    | -                       | -                           
|Germany                        | -                                       | -                    | -                       | -                           
|Ireland                        | -                                       | -                    | -                       | -                           
|Netherlands                    | -                                       | -                    | -                       | -                           
|United
    States              | -                                       | -                    | -                       | -                           
|Total
    Proved Plus Probable | 2,417                                   | 2,279                | 13,127                  | 12,268                      



Notes:

| | (1) | The pricing assumptions used in the GLJ Report with respect to net present value of future net
revenue (forecast) as well as the inflation rates used for operating and capital costs are set forth below. See “Forecast
Prices used in Estimates”. The NGL price is an aggregate of the individual natural gas liquids prices used in the Total Proved
plus Probable evaluation. GLJ is an independent qualified reserves evaluator appointed pursuant to NI 51-101.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | "Gross Reserves" are Vermilion's working interest (operating or non-operating) share
before deduction of royalties and without including any royalty interests of Vermilion. "Net Reserves" are Vermilion's
working interest (operating or non-operating) share after deduction of royalty obligations, plus Vermilion's royalty interests
in reserves.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | "Proved" reserves are those reserves that can be estimated with a high degree of certainty
to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | "Probable" reserves are those additional reserves that are less certain to be recovered
than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum
of the estimated proved plus probable reserves.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (5) | "Developed" reserves are those reserves that are expected to be recovered from existing
wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure (e.g. when compared
to the cost of drilling a well) to put the reserves on production.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (6) | "Developed Producing" reserves are those reserves that are expected to be recovered from
completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut-in, they must have
previously been on production, and the date of resumption of production must be known with reasonable certainty.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (7) | "Developed Non-Producing" reserves are those reserves that either have not been on production,
or have previously been on production, but are shut in, and the date of resumption of production is unknown.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (8) | "Undeveloped" reserves are those reserves expected to be recovered from known accumulations
where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable
of production. They must fully meet the requirements of the reserves classification (proved, probable, possible) to which they
are assigned.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



19


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Net Present Value of Future Net Revenue - Based on Forecast
Prices and Costs(1)



|                                              | Before
    Deducting Future Income Taxes Discounted At | After
    Deducting Future Income Taxes Discounted At
|--------------------------------------------- | ------------------------------------------------------ | -----------------------------------------------------
|(M$)                                          | 0%                                                     | 5%                                                   
|Proved Developed
    Producing(2) (4) (5)     |                                                        |                                                      
|Australia                                     | 2,347                                                  | 129,206                                              
|Canada                                        | 949,037                                                | 750,567                                              
|France                                        | 1,798,973                                              | 1,255,682                                            
|Germany                                       | 43,971                                                 | 38,938                                               
|Ireland                                       | 552,363                                                | 501,468                                              
|Netherlands                                   | 83,154                                                 | 94,117                                               
|United
    States                             | 16,290                                                 | 12,359                                               
|Total
    Proved Developed Producing          | 3,446,135                                              | 2,782,337                                            
|Proved Developed
    Non-Producing(2) (4) (6) |                                                        |                                                      
|Australia                                     | -                                                      | -                                                    
|Canada                                        | 104,042                                                | 71,099                                               
|France                                        | 90,457                                                 | 62,628                                               
|Germany                                       | 25,871                                                 | 19,029                                               
|Ireland                                       | 92,735                                                 | 62,194                                               
|Netherlands                                   | 49,823                                                 | 39,122                                               
|United
    States                             | 9,355                                                  | 5,641                                                
|Total
    Proved Developed Non-Producing      | 372,283                                                | 259,713                                              
|Proved Undeveloped
    (2) (7)                |                                                        |                                                      
|Australia                                     | 90,351                                                 | 65,761                                               
|Canada                                        | 489,912                                                | 322,128                                              
|France                                        | 195,493                                                | 141,793                                              
|Germany                                       | 6,456                                                  | 3,478                                                
|Ireland                                       | -                                                      | -                                                    
|Netherlands                                   | -                                                      | -                                                    
|United
    States                             | 33,881                                                 | 15,244                                               
|Total
    Proved Undeveloped                  | 816,093                                                | 548,404                                              
|Proved(2)                                     |                                                        |                                                      
|Australia                                     | 92,698                                                 | 194,967                                              
|Canada                                        | 1,542,991                                              | 1,143,794                                            
|France                                        | 2,084,923                                              | 1,460,103                                            
|Germany                                       | 76,298                                                 | 61,445                                               
|Ireland                                       | 645,098                                                | 563,662                                              
|Netherlands                                   | 132,977                                                | 133,239                                              
|United
    States                             | 59,526                                                 | 33,244                                               
|Total
    Proved                              | 4,634,511                                              | 3,590,454                                            
|Probable(3)                                   |                                                        |                                                      
|Australia                                     | 233,918                                                | 195,941                                              
|Canada                                        | 1,259,521                                              | 782,374                                              
|France                                        | 1,368,130                                              | 737,715                                              
|Germany                                       | 58,777                                                 | 38,397                                               
|Ireland                                       | 444,344                                                | 271,776                                              
|Netherlands                                   | 259,073                                                | 192,535                                              
|United
    States                             | 169,572                                                | 89,698                                               
|Total
    Probable                            | 3,793,335                                              | 2,308,436                                            
|Proved Plus Probable
    (2) (3)              |                                                        |                                                      
|Australia                                     | 326,616                                                | 390,908                                              
|Canada                                        | 2,802,512                                              | 1,926,168                                            
|France                                        | 3,453,053                                              | 2,197,818                                            
|Germany                                       | 135,075                                                | 99,842                                               
|Ireland                                       | 1,089,442                                              | 835,438                                              
|Netherlands                                   | 392,050                                                | 325,774                                              
|United
    States                             | 229,098                                                | 122,942                                              
|Total
    Proved Plus Probable                | 8,427,846                                              | 5,898,890                                            



20


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Notes:

| | (1) | The pricing assumptions used in the GLJ Report with respect to net present value of future net
revenue (forecast) as well as the inflation rates used for operating and capital costs are set forth below. See “Forecast
Prices used in Estimates”. The NGL price is an aggregate of the individual natural gas liquids prices used in the Total Proved
plus Probable evaluation. GLJ is an independent qualified reserves evaluator appointed pursuant to NI 51-101.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | "Proved" reserves are those reserves that can be estimated with a high degree of certainty
to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | "Probable" reserves are those additional reserves that are less certain to be recovered
than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum
of the estimated proved plus probable reserves.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | "Developed" reserves are those reserves that are expected to be recovered from existing
wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure (e.g. when compared
to the cost of drilling a well) to put the reserves on production.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (5) | "Developed Producing" reserves are those reserves that are expected to be recovered from
completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut-in, they must have
previously been on production, and the date of resumption of production must be known with reasonable certainty.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (6) | "Developed Non-Producing" reserves are those reserves that either have not been on production,
or have previously been on production, but are shut in, and the date of resumption of production is unknown.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (7) | "Undeveloped" reserves are those reserves expected to be recovered from known accumulations
where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable
of production. They must fully meet the requirements of the reserves classification (proved, probable, possible) to which they
are assigned.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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



|                                 |            |           |           |             | Abandonment | Future
    Net   |                  | Future
    Net  
|-------------------------------- | ---------- | --------- | --------- | ----------- | ----------- | ---------------- | ---------------- | ----------------
|                                 |            |           |           | Capital     | and         | Revenue          |                  | Revenue         
|                                 |            |           | Operating | Development | Reclamation | Before           | Future           | After           
|(M$)                             | Revenue    | Royalties | Costs     | Costs       | Costs       | Income
    Taxes | Income
    Taxes | Income
    Taxes
|Proved(2)                        |            |           |           |             |             |                  |                  |                 
|Australia                        | 1,279,689  | -         | 765,611   | 164,897     | 256,483     | 92,698           | (86,385)         | 179,083         
|Canada                           | 3,444,744  | 430,994   | 956,472   | 429,587     | 84,700      | 1,542,991        | 94,922           | 1,448,069       
|France                           | 3,739,055  | 286,952   | 1,054,237 | 142,825     | 170,118     | 2,084,923        | 381,674          | 1,703,249       
|Germany                          | 243,200    | 34,472    | 121,828   | 7,557       | 3,045       | 76,298           | -                | 76,298          
|Ireland                          | 945,039    | -         | 196,807   | 29,121      | 74,013      | 645,098          | -                | 645,098         
|Netherlands                      | 419,120    | 20,930    | 153,011   | 38,411      | 73,791      | 132,977          | 27,439           | 105,538         
|United
    States                | 193,175    | 53,303    | 33,559    | 44,764      | 2,023       | 59,526           | -                | 59,526          
|Total
    Proved                 | 10,264,022 | 826,651   | 3,281,525 | 857,162     | 664,173     | 4,634,511        | 417,650          | 4,216,861       
|Proved Plus Probable
    (2) (3) |            |           |           |             |             |                  |                  |                 
|Australia                        | 1,660,324  | -         | 901,981   | 164,950     | 266,777     | 326,616          | 16,174           | 310,442         
|Canada                           | 6,173,958  | 832,588   | 1,597,976 | 830,126     | 110,756     | 2,802,512        | 428,623          | 2,373,889       
|France                           | 6,025,272  | 448,246   | 1,560,955 | 340,273     | 222,745     | 3,453,053        | 851,147          | 2,601,906       
|Germany                          | 408,139    | 61,573    | 199,859   | 7,594       | 4,038       | 135,075          | -                | 135,075         
|Ireland                          | 1,487,330  | -         | 294,754   | 29,121      | 74,013      | 1,089,442        | -                | 1,089,442       
|Netherlands                      | 908,049    | 67,612    | 274,464   | 87,472      | 86,451      | 392,050          | 73,232           | 318,818         
|United
    States                | 596,459    | 162,300   | 91,475    | 109,001     | 4,585       | 229,098          | 57,693           | 171,405         
|Total
    Proved Plus Probable   | 17,259,531 | 1,572,319 | 4,921,464 | 1,568,537   | 769,365     | 8,427,846        | 1,426,869        | 7,000,977       



Notes:

| | (1) | The pricing assumptions used in the GLJ Report with respect to net present value of future net
revenue (forecast) as well as the inflation rates used for operating and capital costs are set forth below. See “Forecast
Prices used in Estimates”. The NGL price is an aggregate of the individual natural gas liquids prices used in the Total Proved
plus Probable evaluation. GLJ is an independent qualified reserves evaluator appointed pursuant to NI 51-101.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | "Proved" reserves are those reserves that can be estimated with a high degree of certainty
to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | "Probable" reserves are those additional reserves that are less certain to be recovered
than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum
of the estimated proved plus probable reserves.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



21


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Future Net Revenue by Product Type
Based on Forecast Prices and Costs(1)



|                                      | Future Net Revenue           |           
|------------------------------------- | ---------------------------- | ----------
|                                      | Before Income Taxes(2)       |           
|                                      | (Discounted at 10% Per Year) | Unit Value
|Proved Developed Producing            | (M$)                         | ($/boe)   
|Light crude oil & medium crude oil(3) | 1,587,327                    | 25.88     
|Heavy Oil(3)                          | 216                          | 12.36     
|Conventional
    Natural gas(4)       | 733,875                      | 18.69     
|Shale Gas                             | 2,860                        | 7.26      
|Coal Bed Methane                      | 1,259                        | 2.62      
|Total Proved Developed Producing      | 2,325,537                    | 22.91     
|Proved Developed Non-Producing        |                              |           
|Light crude oil & medium crude oil(3) | 66,158                       | 20.41     
|Heavy Oil(3)                          | -                            | -         
|Conventional Natural
    gas(4)       | 126,536                      | 14.41     
|Shale Gas                             | -                            | -         
|Coal Bed Methane                      | 867                          | 3.17      
|Total Proved Developed Non-Producing  | 193,561                      | 15.74     
|Proved Undeveloped                    |                              |           
|Light crude oil & medium crude oil(3) | 259,816                      | 13.92     
|Heavy Oil(3)                          | -                            | -         
|Conventional Natural
    gas(4)       | 116,627                      | 8.44      
|Shale Gas                             | -                            | -         
|Coal Bed Methane                      | 746                          | 1.44      
|Total Proved Undeveloped              | 377,189                      | 11.43     
|Proved                                |                              |           
|Light crude oil & medium crude oil(3) | 1,913,301                    | 22.97     
|Heavy Oil(3)                          | 216                          | 12.42     
|Conventional Natural
    gas(4)       | 977,038                      | 15.81     
|Shale Gas                             | 2,860                        | 7.28      
|Coal Bed Methane                      | 2,872                        | 2.26      
|Total Proved                          | 2,896,287                    | 19.73     
|Probable                              |                              |           
|Light crude oil & medium crude oil(3) | 992,703                      | 20.85     
|Heavy Oil(3)                          | 87                           | 15.91     
|Conventional Natural
    gas(4)       | 565,389                      | 13.80     
|Shale Gas                             | 691                          | 7.26      
|Coal Bed Methane                      | 1,863                        | 2.26      
|Total Probable                        | 1,560,733                    | 19.73     
|Proved Plus Probable                  |                              |           
|Light crude oil & medium crude oil(3) | 2,906,004                    | 22.21     
|Heavy Oil(3)                          | 303                          | 13.30     
|Conventional Natural
    gas(4)       | 1,542,427                    | 15.00     
|Shale Gas                             | 3,551                        | 7.33      
|Coal Bed Methane                      | 4,735                        | 2.31      
|Total Proved Plus Probable            | 4,457,020                    | 18.87     



Notes:

| | (1) | The pricing assumptions used in the GLJ Report with respect to net present value of future net
revenue (forecast) as well as the inflation rates used for operating and capital costs are set forth below. See “Forecast
Prices used in Estimates”. The NGL price is an aggregate of the individual natural gas liquids prices used in the Total Proved
plus Probable evaluation. GLJ is an independent qualified reserves evaluator appointed pursuant to NI 51-101.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | Other Company revenue and costs not related to a specific product type have been
                                                                      allocated proportionately to the specified product types. Unit values are based on Company Net Reserves. Net present
                                                                      value of                                                                       reserves
                                                                      categories are an approximation based on major
                                                                      products.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | Including solution gas and other by-products.
| | --- | ---------------------------------------------

| | (4) | Including by-products but excluding solution gas.
| | --- | -------------------------------------------------



22


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Forecast Prices used in Estimates(1)



|           |                        |                         |            |             | Conventional | Conventional       |            |              |            |          
|---------- | ---------------------- | ----------------------- | ---------- | ----------- | ------------ | ------------------ | ---------- | ------------ | ---------- | ---------
|           |                        | Light
    Crude Oil and |            | Natural Gas | Natural Gas  | Natural Gas        | Inflation  | Exchange     | Exchange  
|           | &
    Medium Crude Oil | Crude
    Oil           | Canada     | Europe      | Liquids      | Rate               | Rate       | Rate        
|           | WTI                    | Edmonton                | Cromer     | Brent Blend |              | National Balancing |            |              |            |          
|           | Cushing                | Par Price               | Medium     | FOB         | AECO         | Point              | FOB        |              |            |          
|           | Oklahoma               | 40 ̊ API                 | 29.3 ̊ API  | North Sea   | Gas Price    | (UK)               | Field Gate | Percent      |            |          
|Year       | ($US/bbl)              | ($Cdn/bbl)              | ($Cdn/bbl) | ($US/bbl)   | ($Cdn/MMBtu) | ($US/MMBtu)        | ($Cdn/bbl) | Per
    Year | ($US/$Cdn) | ($CdnEUR)
|2015       | 48.82                  | 57.23                   | 51.91      | 53.75       | 2.70         | 6.55               | 34.59      | 1.1          | 0.783      | 1.419    
|Forecast   |                        |                         |            |             |              |                    |            |              |            |          
|2016       | 44.00                  | 55.86                   | 50.80      | 45.00       | 2.76         | 5.55               | 30.27      | 2.0          | 0.725      | 1.517    
|2017       | 52.00                  | 64.00                   | 59.52      | 54.00       | 3.27         | 5.68               | 35.76      | 2.0          | 0.750      | 1.467    
|2018       | 58.00                  | 68.39                   | 63.60      | 61.00       | 3.45         | 6.10               | 39.04      | 2.0          | 0.775      | 1.419    
|2019       | 64.00                  | 73.75                   | 68.59      | 67.00       | 3.63         | 6.70               | 42.96      | 2.0          | 0.800      | 1.375    
|2020       | 70.00                  | 78.79                   | 73.27      | 73.00       | 3.81         | 7.30               | 45.85      | 2.0          | 0.825      | 1.333    
|2021       | 75.00                  | 82.35                   | 76.59      | 78.00       | 3.90         | 7.80               | 47.86      | 2.0          | 0.850      | 1.294    
|2022       | 80.00                  | 88.24                   | 82.06      | 83.00       | 4.10         | 8.30               | 51.23      | 2.0          | 0.850      | 1.294    
|2023       | 85.00                  | 94.12                   | 87.53      | 88.00       | 4.30         | 8.80               | 54.59      | 2.0          | 0.850      | 1.294    
|2024       | 87.88                  | 96.48                   | 89.73      | 91.39       | 4.50         | 9.14               | 57.18      | 2.0          | 0.850      | 1.294    
|Thereafter | 2.0%                   | 2.0%                    | 2.0%       | 2.0%        | 2.0%         | 2.0%               | 2.0%       | 2.0%         | 0.850      | 1.294    



Note:

| | (1) | The pricing assumptions used in the GLJ Report with respect to net present value of future net
revenue (forecast) as well as the inflation rates used for operating and capital costs are set forth above. The NGL price is an
aggregate of the individual natural gas liquids prices used in the Total Proved plus Probable evaluation. GLJ is an independent
qualified reserves evaluator appointed pursuant to NI 51-101.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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



Reconciliations of Changes in Reserves



The following tables set forth a reconciliation
of the changes in Vermilion's gross light crude oil and medium crude oil, heavy oil, tight oil, conventional natural gas, shale
gas, coal bed methane and NGLs reserves as at December 31, 2015 compared to such reserves as at December 31, 2014 based on the
forecast price and cost assumptions set forth in note 3.



23


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Reconciliation of Company Gross Reserves
by Principal Product Type - Based on Forecast Prices and Costs



|                               |                         | Light
    Crude Oil &        |                         |                  
|------------------------------ | ----------------------- | ---------------------------- | ----------------------- | -----------------
|AUSTRALIA                      | Total
    Oil(4)        | Medium
    Crude Oil         | Heavy
    Oil           | Tight
    Oil    
|                               |                         |                              | Proved
    +            |                  
|Proved
    Probable P+P(1) (2) | Proved                  | Probable                     | Probable                | Proved           
|Factors                        | (Mbbl)                  | (Mbbl)                       | (Mbbl)                  | (Mbbl)           
|At December 31, 2014           | 12,534                  | 5,449                        | 17,983                  | 12,534           
|Discoveries                    | -                       | -                            | -                       | -                
|Extensions & Improved Recovery | 500                     | 50                           | 550                     | 500              
|Technical Revisions            | 3,087                   | (1,799)                      | 1,288                   | 3,087            
|Acquisitions                   | -                       | -                            | -                       | -                
|Dispositions                   | -                       | -                            | -                       | -                
|Economic Factors               | -                       | -                            | -                       | -                
|Production                     | (2,356)                 | -                            | (2,356)                 | (2,356)          
|At December
    31, 2015       | 13,765                  | 3,700                        | 17,465                  | 13,765           
|                               | Total
    Gas(4)        | Conventional
    Natural Gas | Coal
    Bed Methane(5) | Shale
     Gas(5)
|                               |                         |                              | Proved +                |                  
|Proved
    Probable P+P(1) (2) | Proved                  | Probable                     | Probable                | Proved           
|Factors                        | (MMcf)                  | (MMcf)                       | (MMcf)                  | (MMcf)           
|At December 31, 2014           | -                       | -                            | -                       | -                
|Discoveries                    | -                       | -                            | -                       | -                
|Extensions & Improved Recovery | -                       | -                            | -                       | -                
|Technical Revisions            | -                       | -                            | -                       | -                
|Acquisitions                   | -                       | -                            | -                       | -                
|Dispositions                   | -                       | -                            | -                       | -                
|Economic Factors               | -                       | -                            | -                       | -                
|Production                     | -                       | -                            | -                       | -                
|At December
    31, 2015       | -                       | -                            | -                       | -                
|                               | Natural
    Gas Liquids | BOE                          |                         |                  
|                               |                         |                              | Proved
    +            |                  
|Proved
    Probable P+P(1) (2) | Proved                  | Probable                     | Probable                | Proved           
|Factors                        | (Mbbl)                  | (Mbbl)                       | (Mbbl)                  | (Mboe)           
|At December 31, 2014           | -                       | -                            | -                       | 12,534           
|Discoveries                    | -                       | -                            | -                       | -                
|Extensions & Improved Recovery | -                       | -                            | -                       | 500              
|Technical Revisions            | -                       | -                            | -                       | 3,087            
|Acquisitions                   | -                       | -                            | -                       | -                
|Dispositions                   | -                       | -                            | -                       | -                
|Economic Factors               | -                       | -                            | -                       | -                
|Production                     | -                       | -                            | -                       | (2,356)          
|At
    December 31, 2015       | -                       | -                            | -                       | 13,765           



24


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




|                               |                         | Light
    Crude Oil &        |                         |              
|------------------------------ | ----------------------- | ---------------------------- | ----------------------- | -------------
|CANADA                         | Total
    Oil(4)        | Medium
    Crude Oil         | Heavy
    Oil           | Tight
    Oil
|                               |                         |                              | Proved
    +            |              
|Proved
    Probable P+P(1) (2) | Proved                  | Probable                     | Probable                | Proved       
|Factors                        | (Mbbl)                  | (Mbbl)                       | (Mbbl)                  | (Mbbl)       
|At December 31, 2014           | 27,488                  | 14,799                       | 42,287                  | 27,478       
|Discoveries                    | -                       | -                            | -                       | -            
|Extensions & Improved Recovery | 1,245                   | 2,541                        | 3,786                   | 1,245        
|Technical Revisions            | (283)                   | (825)                        | (1,108)                 | (295)        
|Acquisitions                   | -                       | -                            | -                       | -            
|Dispositions                   | (9)                     | (4)                          | (13)                    | (9)          
|Economic Factors               | (1,970)                 | (1,720)                      | (3,690)                 | (1,970)      
|Production                     | (3,481)                 | -                            | (3,481)                 | (3,478)      
|At December
    31, 2015       | 22,990                  | 14,792                       | 37,782                  | 22,971       
|                               | Total
    Gas(4)        | Conventional
    Natural Gas | Coal
    Bed Methane(5) | Shale  Gas(5)
|                               |                         |                              | Proved +                |              
|Proved
    Probable P+P(1) (2) | Proved                  | Probable                     | Probable                | Proved       
|Factors                        | (MMcf)                  | (MMcf)                       | (MMcf)                  | (MMcf)       
|At December 31, 2014           | 177,414                 | 141,032                      | 318,446                 | 153,592      
|Discoveries                    | -                       | -                            | -                       | -            
|Extensions & Improved Recovery | 56,482                  | 22,244                       | 78,726                  | 56,482       
|Technical Revisions            | 4,325                   | (7,773)                      | (3,448)                 | 3,505        
|Acquisitions                   | 1,933                   | 10,824                       | 12,757                  | 1,933        
|Dispositions                   | (39)                    | (8,944)                      | (8,983)                 | (39)         
|Economic Factors               | (13,736)                | (19,315)                     | (33,051)                | (2,350)      
|Production                     | (26,116)                | -                            | (26,116)                | (23,012)     
|At December
    31, 2015       | 200,263                 | 138,068                      | 338,331                 | 190,111      
|                               | Natural
    Gas Liquids | BOE                          |                        
|                               |                         |                              | Proved
    +            |              
|Proved
    Probable P+P(1) (2) | Proved                  | Probable                     | Probable                | Proved       
|Factors                        | (Mbbl)                  | (Mbbl)                       | (Mbbl)                  | (Mboe)       
|At December 31, 2014           | 13,550                  | 11,331                       | 24,881                  | 70,608       
|Discoveries                    | -                       | -                            | -                       | -            
|Extensions & Improved Recovery | 3,059                   | 2,749                        | 5,808                   | 13,718       
|Technical Revisions            | (410)                   | (2,077)                      | (2,487)                 | 28           
|Acquisitions                   | 187                     | 1,538                        | 1,725                   | 509          
|Dispositions                   | (2)                     | (193)                        | (195)                   | (18)         
|Economic Factors               | (95)                    | (597)                        | (692)                   | (4,354)      
|Production                     | (1,494)                 | -                            | (1,494)                 | (9,328)      
|At
    December 31, 2015       | 14,795                  | 12,751                       | 27,546                  | 71,162       



25


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015








|                                   |                         | Light
    Crude Oil &        |                         |              
|---------------------------------- | ----------------------- | ---------------------------- | ----------------------- | -------------
|FRANCE                             | Total
    Oil(4)        | Medium
    Crude Oil         | Heavy
    Oil           | Tight
    Oil
|                                   |                         |                              | Proved
    +            |              
|Proved
    Probable P+P(1) (2)     | Proved                  | Probable                     | Probable                | Proved       
|Factors                            | (Mbbl)                  | (Mbbl)                       | (Mbbl)                  | (Mbbl)       
|At
    December 31, 2014           | 35,602                  | 20,288                       | 55,890                  | 35,602       
|Discoveries                        | -                       | -                            | -                       | -            
|Extensions
    & Improved Recovery | 4,328                   | 2,466                        | 6,794                   | 4,328        
|Technical
    Revisions            | 5,268                   | (1,429)                      | 3,839                   | 5,268        
|Acquisitions                       | -                       | -                            | -                       | -            
|Dispositions                       | -                       | -                            | -                       | -            
|Economic
    Factors               | -                       | -                            | -                       | -            
|Production                         | (4,477)                 | -                            | (4,477)                 | (4,477)      
|At
    December 31, 2015           | 40,721                  | 21,325                       | 62,046                  | 40,721       
|                                   | Total
    Gas(4)        | Conventional
    Natural Gas | Coal
    Bed Methane(5) | Shale Gas(5) 
|                                   |                         |                              | Proved
    +            |              
|Proved
    Probable P+P(1) (2)     | Proved                  | Probable                     | Probable                | Proved       
|Factors                            | (MMcf)                  | (MMcf)                       | (MMcf)                  | (MMcf)       
|At
    December 31, 2014           | 9,875                   | 2,582                        | 12,457                  | 9,875        
|Discoveries                        | -                       | -                            | -                       | -            
|Extensions
    & Improved Recovery | -                       | -                            | -                       | -            
|Technical
    Revisions            | -                       | -                            | -                       | -            
|Acquisitions                       | -                       | -                            | -                       | -            
|Dispositions                       | -                       | -                            | -                       | -            
|Economic
    Factors               | (1,686)                 | (1,023)                      | (2,709)                 | (1,686)      
|Production                         | (354)                   | -                            | (354)                   | (354)        
|At
    December 31, 2015           | 7,835                   | 1,559                        | 9,394                   | 7,835        
|                                   | Natural
    Gas Liquids | BOE                          |                        
|                                   |                         |                              | Proved
    +            |              
|Proved
    Probable P+P(1) (2)     | Proved                  | Probable                     | Probable                | Proved       
|Factors                            | (Mbbl)                  | (Mbbl)                       | (Mbbl)                  | (Mboe)       
|At
    December 31, 2014           | -                       | -                            | -                       | 37,249       
|Discoveries                        | -                       | -                            | -                       | -            
|Extensions
    & Improved Recovery | -                       | -                            | -                       | 4,328        
|Technical
    Revisions            | -                       | -                            | -                       | 5,268        
|Acquisitions                       | -                       | -                            | -                       | -            
|Dispositions                       | -                       | -                            | -                       | -            
|Economic
    Factors               | -                       | -                            | -                       | (281)        
|Production                         | -                       | -                            | -                       | (4,537)      
|At
    December 31, 2015           | -                       | -                            | -                       | 42,027       



26


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




|                                   |                         | Light
    Crude Oil &        |                         |              
|---------------------------------- | ----------------------- | ---------------------------- | ----------------------- | -------------
|GERMANY                            | Total
    Oil(4)        | Medium
    Crude Oil         | Heavy
    Oil           | Tight
    Oil
|                                   |                         |                              | Proved
    +            |              
|Proved
    Probable P+P(1) (2)     | Proved                  | Probable                     | Probable                | Proved       
|Factors                            | (Mbbl)                  | (Mbbl)                       | (Mbbl)                  | (Mbbl)       
|At
    December 31, 2014           | -                       | -                            | -                       | -            
|Discoveries                        | -                       | -                            | -                       | -            
|Extensions
    & Improved Recovery | -                       | -                            | -                       | -            
|Technical
    Revisions            | -                       | -                            | -                       | -            
|Acquisitions                       | -                       | -                            | -                       | -            
|Dispositions                       | -                       | -                            | -                       | -            
|Economic
    Factors               | -                       | -                            | -                       | -            
|Production                         | -                       | -                            | -                       | -            
|At
    December 31, 2015           | -                       | -                            | -                       | -            
|                                   | Total
    Gas(4)        | Conventional
    Natural Gas | Coal
    Bed Methane(5) | Shale Gas(5) 
|                                   |                         |                              | Proved
    +            |              
|Proved
    Probable P+P(1) (2)     | Proved                  | Probable                     | Probable                | Proved       
|Factors                            | (MMcf)                  | (MMcf)                       | (MMcf)                  | (MMcf)       
|At
    December 31, 2014           | 40,258                  | 21,301                       | 61,559                  | 40,258       
|Discoveries                        | -                       | -                            | -                       | -            
|Extensions
    & Improved Recovery | 2,546                   | (2,546)                      | -                       | 2,546        
|Technical
    Revisions            | (5,543)                 | (756)                        | (6,299)                 | (5,543)      
|Acquisitions                       | -                       | -                            | -                       | -            
|Dispositions                       | -                       | -                            | -                       | -            
|Economic
    Factors               | -                       | -                            | -                       | -            
|Production                         | (5,761)                 | -                            | (5,761)                 | (5,761)      
|At
    December 31, 2015           | 31,500                  | 17,999                       | 49,499                  | 31,500       
|                                   | Natural
    Gas Liquids | BOE                          |                        
|                                   |                         |                              | Proved
    +            |              
|Proved
    Probable P+P(1) (2)     | Proved                  | Probable                     | Probable                | Proved       
|Factors                            | (Mbbl)                  | (Mbbl)                       | (Mbbl)                  | (Mboe)       
|At
    December 31, 2014           | -                       | -                            | -                       | 6,710        
|Discoveries                        | -                       | -                            | -                       | -            
|Extensions
    & Improved Recovery | -                       | -                            | -                       | 424          
|Technical
    Revisions            | -                       | -                            | -                       | (924)        
|Acquisitions                       | -                       | -                            | -                       | -            
|Dispositions                       | -                       | -                            | -                       | -            
|Economic
    Factors               | -                       | -                            | -                       | -            
|Production                         | -                       | -                            | -                       | (960)        
|At
    December 31, 2015           | -                       | -                            | -                       | 5,250        



27


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




|                                   |                         | Light
    Crude Oil &        |                         |              
|---------------------------------- | ----------------------- | ---------------------------- | ----------------------- | -------------
|IRELAND                            | Total
    Oil(4)        | Medium
    Crude Oil         | Heavy
    Oil           | Tight
    Oil
|                                   |                         |                              | Proved
    +            |              
|Proved
    Probable P+P(1) (2)     | Proved                  | Probable                     | Probable                | Proved       
|Factors                            | (Mbbl)                  | (Mbbl)                       | (Mbbl)                  | (Mbbl)       
|At
    December 31, 2014           | -                       | -                            | -                       | -            
|Discoveries                        | -                       | -                            | -                       | -            
|Extensions
    & Improved Recovery | -                       | -                            | -                       | -            
|Technical
    Revisions            | -                       | -                            | -                       | -            
|Acquisitions                       | -                       | -                            | -                       | -            
|Dispositions                       | -                       | -                            | -                       | -            
|Economic
    Factors               | -                       | -                            | -                       | -            
|Production                         | -                       | -                            | -                       | -            
|At
    December 31, 2015           | -                       | -                            | -                       | -            
|                                   | Total
    Gas(4)        | Conventional
    Natural Gas | Coal
    Bed Methane(5) | Shale Gas(5) 
|                                   |                         |                              | Proved
    +            |              
|Proved
    Probable P+P(1) (2)     | Proved                  | Probable                     | Probable                | Proved       
|Factors                            | (MMcf)                  | (MMcf)                       | (MMcf)                  | (MMcf)       
|At
    December 31, 2014           | 105,931                 | 38,707                       | 144,638                 | 105,931      
|Discoveries                        | -                       | -                            | -                       | -            
|Extensions
    & Improved Recovery | -                       | -                            | -                       | -            
|Technical
    Revisions            | (99)                    | 8,698                        | 8,599                   | (99)         
|Acquisitions                       | -                       | -                            | -                       | -            
|Dispositions                       | -                       | -                            | -                       | -            
|Economic
    Factors               | -                       | -                            | -                       | -            
|Production                         | (11)                    | -                            | (11)                    | (11)         
|At
    December 31, 2015           | 105,821                 | 47,405                       | 153,226                 | 105,821      
|                                   | Natural
    Gas Liquids | BOE                          |                        
|                                   |                         |                              | Proved
    +            |              
|Proved
    Probable P+P(1) (2)     | Proved                  | Probable                     | Probable                | Proved       
|Factors                            | (Mbbl)                  | (Mbbl)                       | (Mbbl)                  | (Mboe)       
|At
    December 31, 2014           | -                       | -                            | -                       | 17,655       
|Discoveries                        | -                       | -                            | -                       | -            
|Extensions
    & Improved Recovery | -                       | -                            | -                       | -            
|Technical
    Revisions            | -                       | -                            | -                       | (17)         
|Acquisitions                       | -                       | -                            | -                       | -            
|Dispositions                       | -                       | -                            | -                       | -            
|Economic
    Factors               | -                       | -                            | -                       | -            
|Production                         | -                       | -                            | -                       | (2)          
|At
    December 31, 2015           | -                       | -                            | -                       | 17,637       



28


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




|                                   |                         | Light
    Crude Oil &        |                         |              
|---------------------------------- | ----------------------- | ---------------------------- | ----------------------- | -------------
|NETHERLANDS                        | Total
    Oil(4)        | Medium
    Crude Oil         | Heavy
    Oil           | Tight
    Oil
|                                   |                         |                              | Proved
    +            |              
|Proved
    Probable P+P(1) (2)     | Proved                  | Probable                     | Probable                | Proved       
|Factors                            | (Mbbl)                  | (Mbbl)                       | (Mbbl)                  | (Mbbl)       
|At
    December 31, 2014           | -                       | -                            | -                       | -            
|Discoveries                        | -                       | -                            | -                       | -            
|Extensions
    & Improved Recovery | -                       | -                            | -                       | -            
|Technical
    Revisions            | -                       | -                            | -                       | -            
|Acquisitions                       | -                       | -                            | -                       | -            
|Dispositions                       | -                       | -                            | -                       | -            
|Economic
    Factors               | -                       | -                            | -                       | -            
|Production                         | -                       | -                            | -                       | -            
|At
    December 31, 2015           | -                       | -                            | -                       | -            
|                                   | Total
    Gas(4)        | Conventional
    Natural Gas | Coal
    Bed Methane(5) | Shale Gas(5) 
|                                   |                         |                              | Proved
    +            |              
|Proved
    Probable P+P(1) (2)     | Proved                  | Probable                     | Probable                | Proved       
|Factors                            | (MMcf)                  | (MMcf)                       | (MMcf)                  | (MMcf)       
|At
    December 31, 2014           | 37,155                  | 47,076                       | 84,231                  | 37,155       
|Discoveries                        | 17,405                  | 2,880                        | 20,285                  | 17,405       
|Extensions
    & Improved Recovery | 5,736                   | 4,366                        | 10,102                  | 5,736        
|Technical
    Revisions            | 4,242                   | (5,634)                      | (1,392)                 | 4,242        
|Acquisitions                       | -                       | -                            | -                       | -            
|Dispositions                       | -                       | -                            | -                       | -            
|Economic
    Factors               | -                       | -                            | -                       | -            
|Production                         | (16,339)                | -                            | (16,339)                | (16,339)     
|At
    December 31, 2015           | 48,199                  | 48,688                       | 96,887                  | 48,199       
|                                   | Natural
    Gas Liquids | BOE                          |                        
|                                   |                         |                              | Proved
    +            |              
|Proved
    Probable P+P(1) (2)     | Proved                  | Probable                     | Probable                | Proved       
|Factors                            | (Mbbl)                  | (Mbbl)                       | (Mbbl)                  | (Mboe)       
|At
    December 31, 2014           | 54                      | 103                          | 157                     | 6,247        
|Discoveries                        | 39                      | 7                            | 46                      | 2,940        
|Extensions
    & Improved Recovery | 7                       | 6                            | 13                      | 963          
|Technical
    Revisions            | 24                      | (33)                         | (9)                     | 731          
|Acquisitions                       | -                       | -                            | -                       | -            
|Dispositions                       | -                       | -                            | -                       | -            
|Economic
    Factors               | -                       | -                            | -                       | -            
|Production                         | (36)                    | -                            | (36)                    | (2,759)      
|At
    December 31, 2015           | 88                      | 83                           | 171                     | 8,122        



29


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015






|                                   |                         | Light
    Crude Oil &        |                         |              
|---------------------------------- | ----------------------- | ---------------------------- | ----------------------- | -------------
|UNITED
    STATES                  | Total
    Oil(4)        | Medium
    Crude Oil         | Heavy
    Oil           | Tight
    Oil
|                                   |                         |                              | Proved
    +            |              
|Proved
    Probable P+P(1) (2)     | Proved                  | Probable                     | Probable                | Proved       
|Factors                            | (Mbbl)                  | (Mbbl)                       | (Mbbl)                  | (Mbbl)       
|At
    December 31, 2014           | 449                     | 1,338                        | 1,787                   | 449          
|Discoveries                        | -                       | -                            | -                       | -            
|Extensions
    & Improved Recovery | 1,367                   | 1,324                        | 2,691                   | 1,367        
|Technical
    Revisions            | 106                     | 370                          | 476                     | 106          
|Acquisitions                       | 196                     | 786                          | 982                     | 196          
|Dispositions                       | -                       | -                            | -                       | -            
|Economic
    Factors               | -                       | -                            | -                       | -            
|Production                         | (84)                    | -                            | (84)                    | (84)         
|At
    December 31, 2015           | 2,034                   | 3,818                        | 5,852                   | 2,034        
|                                   | Total
    Gas(4)        | Conventional
    Natural Gas | Coal
    Bed Methane(5) | Shale Gas(5) 
|                                   |                         |                              | Proved
    +            |              
|Proved
    Probable P+P(1) (2)     | Proved                  | Probable                     | Probable                | Proved       
|Factors                            | (MMcf)                  | (MMcf)                       | (MMcf)                  | (MMcf)       
|At
    December 31, 2014           | 243                     | 1,402                        | 1,645                   | 243          
|Discoveries                        | -                       | -                            | -                       | -            
|Extensions
    & Improved Recovery | 1,453                   | 1,569                        | 3,022                   | 1,453        
|Technical
    Revisions            | 274                     | 507                          | 781                     | 274          
|Acquisitions                       | 220                     | 900                          | 1,120                   | 220          
|Dispositions                       | -                       | -                            | -                       | -            
|Economic
    Factors               | -                       | -                            | -                       | -            
|Production                         | (18)                    | -                            | (18)                    | (18)         
|At
    December 31, 2015           | 2,170                   | 4,378                        | 6,548                   | 2,170        
|                                   | Natural
    Gas Liquids | BOE                          |                        
|                                   |                         |                              | Proved
    +            |              
|Proved
    Probable P+P(1) (2)     | Proved                  | Probable                     | Probable                | Proved       
|Factors                            | (Mbbl)                  | (Mbbl)                       | (Mbbl)                  | (Mboe)       
|At
    December 31, 2014           | 10                      | 58                           | 68                      | 500          
|Discoveries                        | -                       | -                            | -                       | -            
|Extensions
    & Improved Recovery | 233                     | 250                          | 483                     | 1,842        
|Technical
    Revisions            | 72                      | 247                          | 319                     | 223          
|Acquisitions                       | 35                      | 143                          | 178                     | 267          
|Dispositions                       | -                       | -                            | -                       | -            
|Economic
    Factors               | -                       | -                            | -                       | -            
|Production                         | (3)                     | -                            | (3)                     | (90)         
|At
    December 31, 2015           | 346                     | 698                          | 1,044                   | 2,742        



30


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




|                                   |                         | Light
    Crude Oil &        |                         |              
|---------------------------------- | ----------------------- | ---------------------------- | ----------------------- | -------------
|TOTAL
    COMPANY                  | Total
    Oil(4)        | Medium
    Crude Oil         | Heavy
    Oil           | Tight
    Oil
|                                   |                         |                              | Proved
    +            |              
|Proved
    Probable P+P(1) (2)     | Proved                  | Probable                     | Probable                | Proved       
|Factors                            | (Mbbl)                  | (Mbbl)                       | (Mbbl)                  | (Mbbl)       
|At
    December 31, 2014           | 76,073                  | 41,874                       | 117,947                 | 76,063       
|Discoveries                        | -                       | -                            | -                       | -            
|Extensions
    & Improved Recovery | 7,440                   | 6,381                        | 13,821                  | 7,440        
|Technical
    Revisions            | 8,178                   | (3,683)                      | 4,496                   | 8,166        
|Acquisitions                       | 196                     | 786                          | 982                     | 196          
|Dispositions                       | (9)                     | (4)                          | (13)                    | (9)          
|Economic
    Factors               | (1,970)                 | (1,720)                      | (3,690)                 | (1,970)      
|Production                         | (10,398)                | -                            | (10,398)                | (10,395)     
|At
    December 31, 2015           | 79,510                  | 43,635                       | 123,145                 | 79,491       
|                                   | Total
    Gas(4)        | Conventional
    Natural Gas | Coal
    Bed Methane(5) | Shale Gas(5) 
|                                   |                         |                              | Proved
    +            |              
|Proved
    Probable P+P(1) (2)     | Proved                  | Probable                     | Probable                | Proved       
|Factors                            | (MMcf)                  | (MMcf)                       | (MMcf)                  | (MMcf)       
|At
    December 31, 2014           | 370,876                 | 252,100                      | 622,976                 | 347,054      
|Discoveries                        | 17,405                  | 2,880                        | 20,285                  | 17,405       
|Extensions
    & Improved Recovery | 66,217                  | 25,633                       | 91,850                  | 66,218       
|Technical
    Revisions            | 3,199                   | (4,958)                      | (1,760)                 | 2,379        
|Acquisitions                       | 2,153                   | 11,724                       | 13,877                  | 2,153        
|Dispositions                       | (39)                    | (8,944)                      | (8,983)                 | (39)         
|Economic
    Factors               | (15,422)                | (20,338)                     | (35,760)                | (4,036)      
|Production                         | (48,599)                | -                            | (48,599)                | (45,495)     
|At
    December 31, 2015           | 395,788                 | 258,097                      | 653,885                 | 385,637      
|                                   | Natural
    Gas Liquids | BOE                          |                        
|                                   |                         |                              | Proved
    +            |              
|Proved
    Probable P+P(1) (2)     | Proved                  | Probable                     | Probable                | Proved       
|Factors                            | (Mbbl)                  | (Mbbl)                       | (Mbbl)                  | (Mboe)       
|At
    December 31, 2014           | 13,614                  | 11,492                       | 25,106                  | 151,503      
|Discoveries                        | 39                      | 7                            | 46                      | 2,940        
|Extensions
    & Improved Recovery | 3,299                   | 3,005                        | 6,304                   | 21,775       
|Technical
    Revisions            | (315)                   | (1,863)                      | (2,178)                 | 8,397        
|Acquisitions                       | 222                     | 1,681                        | 1,903                   | 776          
|Dispositions                       | (2)                     | (193)                        | (195)                   | (18)         
|Economic
    Factors               | (95)                    | (597)                        | (692)                   | (4,635)      
|Production                         | (1,533)                 | -                            | (1,533)                 | (20,032)     
|At
    December 31, 2015           | 15,229                  | 13,532                       | 28,761                  | 160,706      



Notes:

| | (1) | "Proved"
                                         reserves are those reserves that can be estimated with a high degree of certainty to
                                         be recoverable. It is likely that the actual remaining quantities recovered will exceed
                                         the estimated proved reserves.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | "Probable"
                                         reserves are those additional reserves that are less certain to be recovered than proved
                                         reserves. It is equally likely that the actual remaining quantities recovered will be
                                         greater or less than the sum of the estimated proved plus probable reserves.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | The
                                         pricing assumptions used in the GLJ Report with respect to net present value of future
                                         net revenue (forecast) as well as the inflation rates used for operating and capital
                                         costs are set forth above. See “Forecast Prices used in Estimates”. The NGL
                                         price is an aggregate of the individual natural gas liquids prices used in the Total
                                         Proved plus Probable evaluation. GLJ is an independent qualified reserves evaluator appointed
                                         pursuant to NI 51-101.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | For
                                         reporting purposes, “Total Oil” is the sum of Light Crude oil and Medium
                                         Crude Oil, Heavy Oil and Tight Oil. For reporting purposes, “Total Gas” is
                                         the sum of Conventional Natural Gas, Coal Bed Methane and Shale Gas.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (5) | “Coal
                                         Bed Methane” and “Shale Gas” were considered “Unconventional
                                         Natural Gas” in previous years. NI 51-5101 no longer differentiates between conventional
                                         and unconventional activities.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



31


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Undeveloped Reserves



Proved undeveloped reserves are
those reserves expected to be recovered from known accumulations where a significant expenditure (for example, when compared to
the cost of drilling a well) is required to render them capable of production. These reserves have a 90% probability of being
recovered. Vermilion's current plan is to develop these reserves in the following three years. The pace of development of these
reserves is influenced by many factors, including but not limited to, the outcomes of yearly drilling and reservoir evaluations,
changes in commodity pricing, changes in capital allocations, changing technical conditions, regulatory changes and impact of
future acquisitions and dispositions. As new information becomes available these reserves are reviewed and development plans are
revised accordingly.



Probable undeveloped reserves are
those reserves expected to be recovered from known accumulations where a significant expenditure (for example, when compared to
the cost of drilling a well) is required to render them capable of production. These reserves have a 50% probability of being
recovered. Vermilion's current plan is to develop these reserves over the next five years. In general, development of these reserves
requires additional evaluation data to increase the probability of success to an acceptable level for Vermilion. This increases
the timeline for the development of these reserves. This timetable may be altered depending on outside market forces, changes
in capital allocations and impact of future acquisitions and dispositions.



Timing of Initial Undeveloped Reserves Assignment



Undeveloped Reserves Attributed in Current Year



|                       | Light
    Crude Oil | Conventional         |                         |                          |                   
|---------------------- | ------------------- | -------------------- | ----------------------- | ------------------------ | ------------------
|&
    Medium Crude Oil | Natural
    Gas     | Coal
    Bed Methane | Natural
    Gas Liquids | Total
    Oil Equivalent
|(Mbbl)                 | (MMcf)              | (MMcf)               | (Mbbl)                  | (Mboe)                  
|                       | First               |                      | First                   |                          | First             
|                       | Attributed
    (1)  | Booked               | Attributed
    (1)      | Booked                   | Attributed
    (1)
|Proved                 |                     |                      |                         |                          |                   
|Prior
    to 2012      | 7,992               | 14,715               | 12,700                  | 222,055                  | 4,943             
|2012                   | 3,378               | 9,062                | 10,998                  | 121,962                  | -                 
|2013                   | 4,293               | 13,007               | 38,720                  | 167,927                  | 8,191             
|2014                   | 5,614               | 15,434               | 26,111                  | 170,763                  | -                 
|2015                   | 4,182               | 15,989               | 30,963                  | 78,022                   | 333               
|Probable               |                     |                      |                         |                          |                   
|Prior
    to 2012      | 12,013              | 28,151               | 19,297                  | 85,983                   | 2,435             
|2012                   | 3,910               | 17,536               | 8,714                   | 75,358                   | -                 
|2013                   | 7,967               | 17,797               | 53,927                  | 115,066                  | 5,338             
|2014                   | 6,541               | 22,050               | 60,779                  | 163,645                  | -                 
|2015                   | 6,118               | 25,126               | 50,125                  | 122,802                  | 57                



Note:

(1)“First Attributed” refers to reserves first attributed at year-end of the corresponding fiscal year



32


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Future Development Costs(1)



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



|                                     | Total
    Proved                              | Total
    Proved Plus Probable               
|------------------------------------ | --------------------------------------------- | ---------------------------------------------
|(M$)                                 | Estimated
    Using Forecast Prices and Costs | Estimated
    Using Forecast Prices and Costs
|Australia                            |                                               |                                              
|2016                                 | 52,820                                        | 52,820                                       
|2017                                 | 6,701                                         | 6,701                                        
|2018                                 | 51,052                                        | 51,052                                       
|2019                                 | 2,993                                         | 2,993                                        
|2020                                 | 3,052                                         | 3,052                                        
|Remainder                            | 48,279                                        | 48,332                                       
|Total
    for all years undiscounted | 164,897                                       | 164,950                                      
|Canada                               |                                               |                                              
|2016                                 | 120,559                                       | 152,322                                      
|2017                                 | 98,902                                        | 170,944                                      
|2018                                 | 89,432                                        | 189,394                                      
|2019                                 | 45,342                                        | 136,985                                      
|2020                                 | 51,326                                        | 127,236                                      
|Remainder                            | 24,026                                        | 53,245                                       
|Total
    for all years undiscounted | 429,587                                       | 830,126                                      
|France                               |                                               |                                              
|2016                                 | 47,099                                        | 79,711                                       
|2017                                 | 41,380                                        | 77,270                                       
|2018                                 | 12,751                                        | 76,088                                       
|2019                                 | 7,300                                         | 49,803                                       
|2020                                 | 15,570                                        | 24,985                                       
|Remainder                            | 18,725                                        | 32,416                                       
|Total
    for all years undiscounted | 142,825                                       | 340,273                                      
|Germany                              |                                               |                                              
|2016                                 | 210                                           | 210                                          
|2017                                 | 159                                           | 159                                          
|2018                                 | 141                                           | 141                                          
|2019                                 | 6,936                                         | 6,936                                        
|2020                                 | 110                                           | 147                                          
|Remainder                            | 1                                             | 1                                            
|Total
    for all years undiscounted | 7,557                                         | 7,594                                        
|Ireland                              |                                               |                                              
|2016                                 | 8,862                                         | 8,862                                        
|2017                                 | 1,321                                         | 1,321                                        
|2018                                 | -                                             | -                                            
|2019                                 | 1,826                                         | 1,826                                        
|2020                                 | -                                             | -                                            
|Remainder                            | 17,112                                        | 17,112                                       
|Total
    for all years undiscounted | 29,121                                        | 29,121                                       
|Netherlands                          |                                               |                                              
|2016                                 | 1,487                                         | 5,150                                        
|2017                                 | 28,416                                        | 48,788                                       
|2018                                 | 1,076                                         | 15,274                                       
|2019                                 | 424                                           | 11,254                                       
|2020                                 | 433                                           | 433                                          
|Remainder                            | 6,575                                         | 6,573                                        
|Total
    for all years undiscounted | 38,411                                        | 87,472                                       



33


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




|United States                        |         |          
|------------------------------------ | ------- | ---------
|2016                                 | 11,034  | 30,362   
|2017                                 | 24,333  | 37,820   
|2018                                 | 9,397   | 40,819   
|2019                                 | -       | -        
|2020                                 | -       | -        
|Remainder                            | -       | -        
|Total
    for all years undiscounted | 44,764  | 109,001  
|Total
    Company                    |         |          
|2016                                 | 242,071 | 329,437  
|2017                                 | 201,212 | 343,003  
|2018                                 | 163,849 | 372,768  
|2019                                 | 64,821  | 209,797  
|2020                                 | 70,491  | 155,853  
|Remainder                            | 114,718 | 157,679  
|Total
    for all years undiscounted | 857,162 | 1,568,537



Note:

| | (1) | The
                                         pricing assumptions used in the GLJ Report with respect to net present value of future
                                         net revenue (forecast) as well as the inflation rates used for operating and capital
                                         costs are set forth above. See “Forecast Prices used in Estimates”. The NGL
                                         price is an aggregate of the individual natural gas liquids prices used in the Total
                                         Proved plus Probable evaluation. GLJ is an independent qualified reserves evaluator appointed
                                         pursuant to NI 51-101.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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



Oil and Gas Properties and Wells
(1) (2)



The following table sets forth the
number of wells in which Vermilion held a working interest as at December 31, 2015:



|                    | Oil              |               | Gas               
|------------------- | ---------------- | ------------- | ------------------
|Producing           |                  | Non-Producing |                   
|Gross
    Wells(3)  | Net
    Wells(4) |               | Gross
    Wells(3)
|Canada              |                  |               |                   
|Alberta             | 480              | 328           |                   
|Saskatchewan        | 146              | 125           |                   
|Total
    Canada    | 626              | 453           |                   
|Australia           | 18               | 18            |                   
|France              | 345              | 339           |                   
|Germany             | -                | -             |                   
|Ireland             | -                | -             |                   
|Netherlands         | -                | -             |                   
|United
    States   | 5                | 4             |                   
|Total
    Vermilion | 994              | 814           |                   



Notes:

| | (1) | Well
                                         counts are based on wellbores.
| | --- | ----------------------------------------------------------------------------

| | (2) | Wells
                                         for Australia and Ireland are located offshore.
| | --- | ----------------------------------------------------------------------------------------------

| | (3) | "Gross"
                                         refers to the total wells in which Vermilion has an interest, directly or indirectly.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------

| | (4) | "Net"
                                         refers to the total wells in which Vermilion has an interest, directly or indirectly,
                                         multiplied by the percentage working interest owned by Vermilion, directly or indirectly,
                                         therein.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



34


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Costs Incurred



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



|                  | Acquisition
    Costs |           
|----------------- | --------------------- | ----------
|                  | Proved                | Unproved  
|(M$)              | Properties            | Properties
|Australia         | -                     | -         
|Canada            | 14,650                | -         
|France            | 317                   | -         
|Germany           | -                     | -         
|Hungary           | -                     | -         
|Ireland           | -                     | -         
|Netherlands       | -                     | -         
|United
    States | 12,764                | -         
|Total             | 27,731                | -         



Acreage



The following table summarizes the acreage
for the year ended December 31, 2015:



|                  | Developed
    (1) | Undeveloped | Total         | Total      
|----------------- | ----------------- | ----------- | ------------- | -----------
|                  | Gross
    (2)     | Net
    (3) | Gross
    (2) | Net
    (3)
|Australia         | 20,164            | 20,164      | 39,389        | 39,389     
|Canada            | 460,398           | 326,531     | 609,129       | 537,044    
|France            | 218,110           | 208,858     | 374,598       | 374,598    
|Germany           | 31,363            | 7,841       | 285,329       | 153,378    
|Hungary           | -                 | -           | 322,142       | 322,142    
|Ireland           | 7,200             | 1,300       | -             | -          
|Netherlands       | 80,246            | 48,121      | 1,412,224     | 766,456    
|United
    States | 2,408             | 2,070       | 100,421       | 88,672     
|Total             | 819,889           | 614,885     | 3,143,232     | 2,281,679  



Notes:

(1)“Developed”
means the acreage assigned to productive wells based on applicable regulations.

(2)“Gross”
means the total acreage in which Vermilion has a working interest, directly or indirectly.

(3)“Net”
means the total acreage in which Vermilion has a working interest, directly or indirectly, multiplied by the percentage working
interest of Vermilion.



35


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Exploration and Development Activities



The following table sets forth the number
of development and exploration wells which Vermilion completed during its 2015 financial year:



|                    | Exploration
    Wells | Development
    Wells
|------------------- | --------------------- | ---------------------
|                    | Gross
    (1)         | Net
    (2)          
|Australia           |                       |                      
|Oil                 | -                     | -                    
|Gas                 | -                     | -                    
|Standing            | -                     | -                    
|Dry
    Holes       | -                     | -                    
|Total
    Completed | -                     | -                    
|Canada              |                       |                      
|Oil                 | -                     | -                    
|Gas                 | -                     | -                    
|Standing            | -                     | -                    
|Dry
    Holes       | -                     | -                    
|Total
    Completed | -                     | -                    
|France              |                       |                      
|Oil                 | -                     | -                    
|Gas                 | -                     | -                    
|Service             | -                     | -                    
|Standing            | -                     | -                    
|Dry
    Holes       | -                     | -                    
|Total
    Completed | -                     | -                    
|Germany             |                       |                      
|Oil                 | -                     | -                    
|Gas                 | -                     | -                    
|Standing            | -                     | -                    
|Dry
    Holes       | -                     | -                    
|Total
    Completed | -                     | -                    
|Ireland             |                       |                      
|Oil                 | -                     | -                    
|Gas                 | -                     | -                    
|Standing            | -                     | -                    
|Dry
    Holes       | -                     | -                    
|Total
    Completed | -                     | -                    
|Netherlands         |                       |                      
|Oil                 | -                     | -                    
|Gas                 | -                     | -                    
|Standing            | -                     | -                    
|Dry
    Holes       | -                     | -                    
|Total
    Completed | -                     | -                    
|United
    States   |                       |                      
|Oil                 | -                     | -                    
|Gas                 | -                     | -                    
|Standing            | -                     | -                    
|Dry
    Holes       | -                     | -                    
|Total
    Completed | -                     | -                    
|Total
    Company   |                       |                      
|Oil                 | -                     | -                    
|Gas                 | -                     | -                    
|Service             | -                     | -                    
|Standing            | -                     | -                    
|Dry
    Holes       | -                     | -                    
|Total
    Completed | -                     | -                    



Notes:

| | (1) | "Gross"
                                         refers to the total wells in which Vermilion has an interest, directly or indirectly.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------

| | (2) | "Net"
                                         refers to the total wells in which Vermilion has an interest, directly or indirectly,
                                         multiplied by the percentage working interest owned by Vermilion, directly or indirectly
                                         therein.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



36


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




In December 2014, Vermilion had
initially announced a $525 million 2015 capital program with activities planned in Australia, Canada, France, Ireland, the Netherlands,
Germany and the United States. Subsequently in February 2015, Vermilion announced a reduction in budgeted 2015 capital expenditures
to $415 million. That reduction reflected lower planned activity levels, including the deferral of our Australian drilling program.
In August 2015, Vermilion announced an increase in our capital expenditure guidance of $70 million to $485 million following the
reinstatement of the Australian drilling program as well as additional funding for projects in Canada, France and Ireland.



Properties with No Attributed Reserves



The following table sets out Vermilion's properties with
no attributed reserves as at December 31, 2015:



|                  | Properties
    with No Attributed Reserves
|----------------- | ------------------------------------------
|Country           | Gross
    Acres(1)                        
|Australia         | 39,389                                    
|Canada            | 348,900                                   
|France            | 374,598                                   
|Germany           | 285,329                                   
|Hungary           | 322,142                                   
|Ireland           | -                                         
|Netherlands       | 1,412,224                                 
|United
    States | 92,768                                    
|Total             | 2,875,350                                 



Notes:

| | (1) | "Gross"
                                         refers to the total acres in which Vermilion has an interest, directly or indirectly.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------

| | (2) | "Net"
                                         refers to the total acres in which Vermilion has an interest, directly or indirectly,
                                         multiplied by the percentage working interest owned by Vermilion, directly or indirectly
                                         therein.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Vermilion
expects its rights to explore, develop and exploit approximately 72,500 (72,500 net) acres in Canada, 1,400 (1,400 net) acres
in the United States, and 38,000 (38,000 net) acres in France to expire within one year, unless the Company initiates the capital
activity necessary to retain the rights. Work commitments on these lands are categorized as seismic acquisition, geophysical studies
or well commitments. No such rights are expected
to expire within one year for Australia, Germany, Hungary, Ireland and the Netherlands. Vermilion currently has no material work
commitments in Australia, Canada and the United States. Vermilion's work commitments with respect to its European lands held are
estimated to be $2.2 million in the next year.



Vermilion’s properties with
no attributed reserves do not have any significant abandonment and reclamation costs in any country other than Canada, which has
a net estimated cost of $14.9 million.  All properties with no attributed reserves do not have high expected development
or operating costs or contractual sales obligations to produce and sell at substantially lower prices than could be realized.



Tax Information



Vermilion pays current taxes in
France, the Netherlands and Australia. Corporate income taxes in France and the Netherlands apply to taxable income after eligible
deductions. In France, taxable income is taxed at 34.4%. In 2012, the France government enacted a new 3% tax on dividend distributions
made by entities subject to corporate income tax in France. The tax applies to any dividends paid on or after April 17, 2012 and
is not recovered by any tax treaties or deductible for French corporate income tax purposes. Vermilion did not pay any dividends
from its French entities in 2015. In the Netherlands, taxable income is taxed at a rate of approximately 46%. As a function of
the impact of Vermilion’s tax pools, the Company does not presently pay current taxes in Canada, Ireland and the United
States. The Canadian segment includes holding companies that pay current taxes in foreign jurisdictions.



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



37


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




The following table sets forth Vermilion’s tax
pools as at December 31, 2015:



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



Notes:

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

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

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

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



Production Estimates

The following table sets forth the volume of production estimated for the year ended December 31, 2016 as reflected in the estimates
of gross proved reserves and gross proved plus probable reserves in the GLJ Report:



|Light
    Crude Oil &          |               |               | Conventional    | Shale           | Coal
    Bed | Natural
    Gas |        
|------------------------------ | ------------- | ------------- | --------------- | --------------- | ------------ | --------------- | -------
|Medium
    Crude Oil           | Heavy
    Oil | Tight
    Oil | Natural
    Gas | Natural
    Gas | Methane      | Liquids         | BOE    
|                               | (bbl/d)       | (bbl/d)       | (bbl/d)         | (Mcf/d)         | (Mcf/d)      | (Mcf/d)         | (bbl/d)
|Australia                      |               |               |                 |                 |              |                 |        
|Proved                         | 6,403         | -             | -               | -               | -            | -               | -      
|Proved
    Plus Probable       | 7,213         | -             | -               | -               | -            | -               | -      
|Canada                         |               |               |                 |                 |              |                 |        
|Proved                         | 8,143         | 7             | 6               | 80,933          | 940          | 2,458           | 5,773  
|Proved
    Plus Probable       | 8,947         | 7             | 7               | 89,579          | 1,016        | 2,665           | 6,462  
|France                         |               |               |                 |                 |              |                 |        
|Proved                         | 11,788        | -             | -               | 1,433           | -            | -               | -      
|Proved
    Plus Probable       | 12,877        | -             | -               | 1,449           | -            | -               | -      
|Germany                        |               |               |                 |                 |              |                 |        
|Proved                         | -             | -             | -               | 14,686          | -            | -               | -      
|Proved
    Plus Probable       | -             | -             | -               | 15,497          | -            | -               | -      
|Ireland                        |               |               |                 |                 |              |                 |        
|Proved                         | -             | -             | -               | 55,141          | -            | -               | -      
|Proved
    Plus Probable       | -             | -             | -               | 57,383          | -            | -               | -      
|Netherlands                    |               |               |                 |                 |              |                 |        
|Proved                         | -             | -             | -               | 47,113          | -            | -               | 106    
|Proved
    Plus Probable       | -             | -             | -               | 54,827          | -            | -               | 122    
|United
    States              |               |               |                 |                 |              |                 |        
|Proved                         | 483           | -             | -               | 210             | -            | -               | 33     
|Proved
    Plus Probable       | 917           | -             | -               | 438             | -            | -               | 70     
|Total
    Proved               | 26,817        | 7             | 6               | 199,516         | 940          | 2,458           | 5,912  
|Total
    Proved Plus Probable | 29,954        | 7             | 7               | 219,173         | 1,016        | 2,665           | 6,654  



38


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Production History



The following table sets forth certain
information in respect of production, product prices received, royalties, production costs and netbacks received by Vermilion
for each quarter of its most recently completed financial year. On December 30, 2015, natural gas began to flow from our Corrib
gas project. Light crude oil and medium crude oil average net prices received in the following table also includes immaterial
amounts generated by the sale of heavy oil.



|                                                 | Three
    Months Ended | Three
    Months Ended | Three
    Months Ended | Three
    Months Ended
|------------------------------------------------ | ---------------------- | ---------------------- | ---------------------- | ----------------------
|                                                 | March
    31, 2015     | June
    30, 2015      | September
    30, 2015 | December
    31, 2015 
|Australia                                        |                        |                        |                        |                       
|Average
    Daily Production                     |                        |                        |                        |                       
|Light
    Crude Oil and Medium Crude Oil (bbl/d) | 5,672                  | 5,865                  | 6,433                  | 7,824                 
|Conventional Natural
    Gas (MMcf/d)            | -                      | -                      | -                      | -                     
|Natural
    Gas Liquids (bbl/d)                  | -                      | -                      | -                      | -                     
|Average
    Net Prices Received                  |                        |                        |                        |                       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 83.80                  | 80.87                  | 68.20                  | 58.74                 
|Conventional Natural
    Gas ($/Mcf)             | -                      | -                      | -                      | -                     
|Natural
    Gas Liquids ($/bbl)                  | -                      | -                      | -                      | -                     
|Royalties                                        |                        |                        |                        |                       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | -                      | -                      | -                      | -                     
|Conventional Natural
    Gas ($/Mcf)             | -                      | -                      | -                      | -                     
|Natural
    Gas Liquids ($/bbl)                  | -                      | -                      | -                      | -                     
|Production
    Costs                             |                        |                        |                        |                       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 25.58                  | 26.02                  | 23.87                  | 17.08                 
|Conventional Natural
    Gas ($/Mcf)             | -                      | -                      | -                      | -                     
|Natural
    Gas Liquids ($/bbl)                  | -                      | -                      | -                      | -                     
|Netback
    Received                             |                        |                        |                        |                       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 58.22                  | 54.85                  | 44.33                  | 41.66                 
|Conventional Natural
    Gas ($/Mcf)             | -                      | -                      | -                      | -                     
|Natural
    Gas Liquids ($/bbl)                  | -                      | -                      | -                      | -                     
|Canada                                           |                        |                        |                        |                       
|Average
    Daily Production                     |                        |                        |                        |                       
|Light
    Crude Oil and Medium Crude Oil (bbl/d) | 10,893                 | 10,182                 | 9,195                  | 7,964                 
|Conventional Natural
    Gas (MMcf/d)            | 61.78                  | 64.66                  | 71.94                  | 87.90                 
|Natural
    Gas Liquids (bbl/d)                  | 2,976                  | 3,755                  | 4,513                  | 5,159                 
|Average
    Net Prices Received                  |                        |                        |                        |                       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 52.36                  | 67.42                  | 56.59                  | 53.71                 
|Conventional Natural
    Gas ($/Mcf)             | 2.97                   | 2.78                   | 2.88                   | 2.57                  
|Natural
    Gas Liquids ($/bbl)                  | 37.40                  | 36.39                  | 25.52                  | 29.10                 
|Royalties                                        |                        |                        |                        |                       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 5.78                   | 5.13                   | 6.81                   | 6.03                  
|Conventional Natural
    Gas ($/Mcf)             | 0.23                   | (0.17)                 | 0.10                   | 0.12                  
|Natural
    Gas Liquids ($/bbl)                  | 6.21                   | 5.81                   | 0.46                   | 3.78                  
|Transportation                                   |                        |                        |                        |                       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 2.26                   | 2.54                   | 2.29                   | 2.16                  
|Conventional Natural
    Gas ($/Mcf)             | 0.16                   | 0.18                   | 0.17                   | 0.16                  
|Natural
    Gas Liquids ($/bbl)                  | 3.04                   | 3.02                   | 2.53                   | 1.86                  
|Production
    Costs                             |                        |                        |                        |                       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 9.34                   | 11.07                  | 12.00                  | 12.56                 
|Conventional Natural
    Gas ($/Mcf)             | 1.41                   | 1.39                   | 1.44                   | 1.40                  
|Natural
    Gas Liquids ($/bbl)                  | 7.87                   | 9.05                   | 10.09                  | 8.53                  
|Netback
    Received                             |                        |                        |                        |                       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 34.98                  | 48.68                  | 35.48                  | 32.95                 
|Conventional Natural
    Gas ($/Mcf)             | 1.17                   | 1.38                   | 1.17                   | 0.89                  
|Natural
    Gas Liquids ($/bbl)                  | 20.28                  | 18.50                  | 12.43                  | 14.93                 
|France                                           |                        |                        |                        |                       
|Average
    Daily Production                     |                        |                        |                        |                       
|Light
    Crude Oil and Medium Crude Oil (bbl/d) | 11,463                 | 12,746                 | 12,310                 | 12,537                
|Conventional Natural
    Gas (MMcf/d)            | -                      | 1.03                   | 1.47                   | 1.36                  
|Natural
    Gas Liquids (bbl/d)                  | -                      | -                      | -                      | -                     
|Average
    Net Prices Received                  |                        |                        |                        |                       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 64.33                  | 72.83                  | 61.75                  | 54.88                 
|Conventional Natural
    Gas ($/Mcf)             | -                      | 1.53                   | 2.93                   | 2.81                  
|Natural
    Gas Liquids ($/bbl)                  | -                      | -                      | -                      | -                     
|Royalties                                        |                        |                        |                        |                       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 5.48                   | 5.92                   | 6.46                   | 6.23                  
|Conventional Natural
    Gas ($/Mcf)             | -                      | 0.01                   | 0.55                   | 0.32                  
|Natural
    Gas Liquids ($/bbl)                  | -                      | -                      | -                      | -                     



39


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




|Transportation                                   |       |       |       |      
|------------------------------------------------ | ----- | ----- | ----- | -----
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 3.24  | 3.15  | 3.70  | 3.72 
|Conventional Natural
    Gas ($/Mcf)             | -     | -     | -     | -    
|Natural
    Gas Liquids ($/bbl)                  | -     | -     | -     | -    
|Production
    Costs                             |       |       |       |      
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 11.64 | 10.72 | 9.62  | 13.55
|Conventional Natural
    Gas ($/Mcf)             | -     | 1.16  | 0.95  | 1.81 
|Natural
    Gas Liquids ($/bbl)                  | -     | -     | -     | -    
|Netback
    Received                             |       |       |       |      
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 43.97 | 53.04 | 41.97 | 31.38
|Conventional Natural
    Gas ($/Mcf)             | -     | 0.36  | 1.43  | 0.68 
|Natural
    Gas Liquids ($/bbl)                  | -     | -     | -     | -    
|Germany                                          |       |       |       |      
|Average
    Daily Production                     |       |       |       |      
|Light
    Crude Oil and Medium Crude Oil (bbl/d) | -     | -     | -     | -    
|Conventional Natural
    Gas (MMcf/d)            | 16.80 | 16.18 | 14.00 | 16.17
|Natural
    Gas Liquids (bbl/d)                  | -     | -     | -     | -    
|Average
    Net Prices Received                  |       |       |       |      
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | -     | -     | -     | -    
|Conventional Natural
    Gas ($/Mcf)             | 7.53  | 7.22  | 7.39  | 6.61 
|Natural
    Gas Liquids ($/bbl)                  | -     | -     | -     | -    
|Royalties                                        |       |       |       |      
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | -     | -     | -     | -    
|Conventional Natural
    Gas ($/Mcf)             | 1.06  | 1.52  | 1.15  | 0.78 
|Natural
    Gas Liquids ($/bbl)                  | -     | -     | -     | -    
|Transportation                                   |       |       |       |      
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | -     | -     | -     | -    
|Conventional Natural
    Gas ($/Mcf)             | 0.59  | 0.84  | 0.49  | 0.34 
|Natural
    Gas Liquids ($/bbl)                  | -     | -     | -     | -    
|Production
    Costs                             |       |       |       |      
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | -     | -     | -     | -    
|Conventional Natural
    Gas ($/Mcf)             | 1.32  | 0.93  | 2.17  | 3.22 
|Natural
    Gas Liquids ($/bbl)                  | -     | -     | -     | -    
|Netback
    Received                             |       |       |       |      
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | -     | -     | -     | -    
|Conventional Natural
    Gas ($/Mcf)             | 4.56  | 3.93  | 3.58  | 2.27 
|Natural
    Gas Liquids ($/bbl)                  | -     | -     | -     | -    
|Netherlands                                      |       |       |       |      
|Average
    Daily Production                     |       |       |       |      
|Light
    Crude Oil and Medium Crude Oil (bbl/d) | -     | -     | -     | -    
|Conventional Natural
    Gas (MMcf/d)            | 36.41 | 32.43 | 53.56 | 56.34
|Natural
    Gas Liquids (bbl/d)                  | 63    | 112   | 109   | 110  
|Average
    Net Prices Received                  |       |       |       |      
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | -     | -     | -     | -    
|Conventional Natural
    Gas ($/Mcf)             | 8.09  | 7.92  | 8.24  | 7.09 
|Natural
    Gas Liquids ($/bbl)                  | 52.93 | 53.28 | 46.65 | 48.30
|Royalties                                        |       |       |       |      
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | -     | -     | -     | -    
|Conventional Natural
    Gas ($/Mcf)             | 0.28  | 0.44  | 0.13  | 0.04 
|Natural
    Gas Liquids ($/bbl)                  | -     | -     | -     | -    
|Production
    Costs                             |       |       |       |      
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | -     | -     | -     | -    
|Conventional Natural
    Gas ($/Mcf)             | 1.78  | 1.83  | 1.06  | 1.21 
|Natural
    Gas Liquids ($/bbl)                  | -     | -     | -     | -    
|Netback
    Received                             |       |       |       |      
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | -     | -     | -     | -    
|Conventional Natural
    Gas ($/Mcf)             | 6.03  | 5.65  | 7.05  | 5.84 
|Natural
    Gas Liquids ($/bbl)                  | 52.93 | 53.28 | 46.65 | 48.30



40


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




|United
    States                                |        |        |        |       
|------------------------------------------------ | ------ | ------ | ------ | ------
|Average
    Daily Production                     |        |        |        |       
|Light
    Crude Oil and Medium Crude Oil (bbl/d) | 153    | 123    | 226    | 420   
|Conventional Natural
    Gas (MMcf/d)            | -      | -      | -      | 0.20  
|Natural
    Gas Liquids (bbl/d)                  | -      | -      | -      | 29    
|Average
    Net Prices Received                  |        |        |        |       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 48.79  | 60.57  | 51.60  | 47.59 
|Conventional Natural
    Gas ($/Mcf)             | -      | -      | -      | 0.52  
|Natural
    Gas Liquids ($/bbl)                  | -      | -      | -      | 5.13  
|Royalties                                        |        |        |        |       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 14.98  | 17.08  | 14.83  | 13.89 
|Conventional Natural
    Gas ($/Mcf)             | -      | -      | -      | 0.30  
|Natural
    Gas Liquids ($/bbl)                  | -      | -      | -      | 3.19  
|Transportation                                   |        |        |        |       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | -      | -      | -      | -     
|Conventional Natural
    Gas ($/Mcf)             | -      | -      | -      | -     
|Natural
    Gas Liquids ($/bbl)                  | -      | -      | -      | -     
|Production
    Costs                             |        |        |        |       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 15.61  | 9.88   | 6.98   | 7.02  
|Conventional Natural
    Gas ($/Mcf)             | -      | -      | -      | -     
|Natural
    Gas Liquids ($/bbl)                  | -      | -      | -      | -     
|Netback
    Received                             |        |        |        |       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 18.20  | 33.61  | 29.79  | 26.68 
|Conventional Natural
    Gas ($/Mcf)             | -      | -      | -      | 0.22  
|Natural
    Gas Liquids ($/bbl)                  | -      | -      | -      | 1.94  
|Total                                            |        |        |        |       
|Average
    Daily Production                     |        |        |        |       
|Light
    Crude Oil and Medium Crude Oil (bbl/d) | 28,181 | 28,916 | 28,164 | 28,745
|Conventional Natural
    Gas (MMcf/d)            | 115.00 | 114.29 | 140.97 | 162.09
|Natural
    Gas Liquids (bbl/d)                  | 3,039  | 3,867  | 4,622  | 5,298 
|Average
    Net Prices Received                  |        |        |        |       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 60.86  | 72.99  | 61.43  | 55.61 
|Conventional Natural
    Gas ($/Mcf)             | 5.26   | 4.86   | 5.36   | 4.55  
|Natural
    Gas Liquids ($/bbl)                  | 37.72  | 36.88  | 26.02  | 29.36 
|Royalties                                        |        |        |        |       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 5.09   | 4.20   | 5.24   | 4.43  
|Conventional Natural
    Gas ($/Mcf)             | 0.37   | 0.25   | 0.22   | 0.16  
|Natural
    Gas Liquids ($/bbl)                  | 6.08   | 5.65   | 0.45   | 3.70  
|Transportation
    Costs                         |        |        |        |       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 2.42   | 2.14   | 2.43   | 2.14  
|Conventional Natural
    Gas ($/Mcf)             | 0.34   | 0.38   | 0.27   | 0.23  
|Natural
    Gas Liquids ($/bbl)                  | 2.97   | 2.93   | 2.47   | 1.81  
|Production
    Costs                             |        |        |        |       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 12.11  | 14.70  | 13.42  | 14.24 
|Conventional Natural
    Gas ($/Mcf)             | 1.51   | 1.45   | 1.36   | 1.52  
|Natural
    Gas Liquids ($/bbl)                  | 7.71   | 8.79   | 9.86   | 8.30  
|Netback
    Received                             |        |        |        |       
|Light
    Crude Oil and Medium Crude Oil ($/bbl) | 41.24  | 51.95  | 40.33  | 34.80 
|Conventional Natural
    Gas ($/Mcf)             | 3.04   | 2.78   | 3.51   | 2.64  
|Natural
    Gas Liquids ($/bbl)                  | 20.96  | 19.51  | 13.24  | 15.55 



41


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Marketing



The nature of Vermilion’s
operations results in exposure to fluctuations in commodity prices, interest rates and foreign currency exchange rates. Vermilion
monitors and, when appropriate, uses derivative financial instruments to manage its exposure to these fluctuations. All transactions
of this nature entered into by Vermilion are related to an underlying financial position or to future crude oil and natural gas
production. Vermilion does not use derivative financial instruments for speculative purposes. Vermilion has not obtained collateral
or other security to support its financial derivatives as management reviews the creditworthiness of its counterparties prior
to entering into derivative contracts.



During the normal course of business,
Vermilion may also enter into fixed price arrangements to sell a portion of its production or purchase commodities for operational
use.



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



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



Notes:

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

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

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

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

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

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



|                                 | Note | Volume         | Strike
    Price(s)  
|-------------------------------- | ---- | -------------- | ---------------------
|European
    Natural Gas         |      |                |                      
|NBP
    - Call                   |      |                |                      
|October
    2016 - March 2017    |      | 2,638
    GJ/d | 4.64
    GBP £       
|NBP
    - Collar                 |      |                |                      
|April
    2016 - March 2017      |      | 2,638
    GJ/d | 3.79
    - 4.53 GBP £
|January
    2017 - December 2017 |      | 2,638
    GJ/d | 3.22
    - 3.75 GBP £
|January
    2018 - December 2018 |      | 2,638
    GJ/d | 2.99
    - 3.63 GBP £
|NBP
    - Put                    |      |                |                      
|April
    2016 - September 2016  |      | 2,638
    GJ/d | 3.79
    GBP £       



42


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




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



Notes:

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

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

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

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

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

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

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



From time to time Vermilion enters
into new risk management positions. Information regarding outstanding risk management positions is available on Vermilion’s
website at www.vermilionenergy.com/ir/hedging.cfm.



43


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




ADDITIONAL INFORMATION RESPECTING
VERMILION ENERGY INC.



Management



Vermilion’s board of directors
currently consists of ten directors. The directors are nominated by the Company and elected annually by Shareholders and hold
office until the next meeting of Shareholders (unless otherwise ceasing to act as a director prior to such meeting). As at February
29, 2016, the directors and officers of Vermilion, as a group, beneficially owned, or controlled or directed, directly or indirectly,
4,150,841 common shares representing approximately 3.7% of the issued and outstanding common shares.



The following table sets forth certain
information respecting the current directors and officers of Vermilion. References to Vermilion in the following table for dates
prior to the Conversion Arrangement refer to VRL and to the Company following the date of the Conversion Arrangement.



Directors:



|Name
    andMunicipality ofResidence                                                          | Committee(s)        | Office
    Held                                                        | Year
FirstElected orAppointedas Director | Principal
    Occupation During the Past Five Years                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--------------------------------------------------------------------------------------------- | ------------------- | ---------------------------------------------------------------------- | ---------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Lorenzo
                                         DonadeoCalgary, Alberta
        Canada       | (1)                 | Chairman
                                         of
        the Board | 1994                                     | Since
                                         March 1, 2016, Chairman of the Board of VermilionMarch 2014 – March 1, 2016 Chief Executive Officer
                                         of Vermilion
        
        2003 –
        March 2014, President and Chief Executive Officer of Vermilion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|Claudio
                                         A. GhersinichCalgary, Alberta
        Canada | (3)
    (6)         | Director                                                               | 1994                                     | Since
                                         2011, Chairman of ArPetrol Ltd., a public oil and gas company
        
        Since
        2010, Director of Valeura Energy Inc., a public oil and gas company
        
        Since
        2005, President of Carrera Investments Corp., a private investment company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|Joseph
                                         F. KilliCalgary, Alberta
        Canada       | (3)
    (4)         | Director                                                               | 1999                                     | Since
                                         2011, Director of Network Capital Management Inc., a private investment management company
        
        Since
        2008, President and Chief Executive Officer and Director of Wilmington Capital Management Inc., a public investment company
        
        Since
        1993, President of Rosebridge Capital Corp. Inc., a private real estate investment company
        
        January
        2011 to December 2011, Executive Chairman of Parkbridge Lifestyle Communities Inc., a private real estate company
        2005 to
        2011, Vice Chairman and Director of Realex Properties Corp., a public real estate company
        2004 to
        2011, Executive Chairman and Director of Parkbridge Lifestyle Communities Inc., a public real estate company
|Loren
                                         M. LeikerHouston, Texas
        USA            | (6)                 | Director                                                               | 2012                                     | Since
                                         2014, Director of Navitas Midstream Partners LLC
        
        Since
        2012, Director of SM Energy, a public energy company
        
        Since
        2012 to 2015, Director of Midstates Petroleum, a public exploration and production company
        
        2008 to
        2011, Senior Executive VP Exploration, EOG Resources, a public oil and gas company                                                                                                                                                                                                                                                                                                                                                                                                       
|Larry
                                         J. MacdonaldOkotoks, Alberta
        Canada    | (2)
    (4) (5) (6) | Lead
    Director                                                      | 2002                                     | Since
                                         March 1, 2016, Lead Director of Vermilion2012 to March 1, 2016, Chairman of the Board of VermilionSince 2012, Chairman Northpoint Resources, a private oil
                                         and gas company
        
        Since
        2003, Chairman & Chief Executive Officer and Director of Point Energy Ltd., a private oil and gas company
        
        2006 to
        2013, Director of Sure Energy Inc.                                                                                                                                                                                                                                                                                                                                                         
|William
                                         F. MadisonSugar Land, Texas
        USA      | (5)
    (6)         | Director                                                               | 2004                                     | Since
                                         2011, Director of Montana Tech Foundation, an independent, non-profit organization
        
        Since
        2007, Director of Canadian Oil Recovery and Remediation Enterprise, Inc., a public oil recovery and remediation company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                





44


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




|Timothy R. Marchant
        Calgary, Alberta
        Canada   | (5)
    (6) | Director | 2010 | Since 2015, Director, Valeura Energy
        Inc., a public oil and gas company
        Since 2013, Non-Executive Director of Cub Energy Inc., a public oil and gas company
        
        Since 2009, Adjunct Professor of Strategy
        and Energy Geopolitics, Haskayne School of Business
        
        2011 to 2013, Executive Chair of Anatolia
        Energy Corp., a public oil and gas company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|------------------------------------------------------------- | ----------- | -------- | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Sarah
    E. RaissCalgary, AlbertaCanada                      | (4)
    (5) | Director | 2014 | Since 2014, Director, Loblaw Companies Limited, a public
        food distributor company
        
        Since 2011, Director, Commercial Metals Company, a public
        global, metals recycling, manufacturing, fabricating and trading company
        
        2012 to 2015, Board Chair, Alberta Electric Systems Operator,
        a not-for-profit entity responsible for the planning and operation of the Alberta Interconnected Electric System
        
        2012 to February 2016, Director, Canadian Oil
        Sands Limited, a public oil company
        2009 to 2014, Director, Shoppers Drug Mart Corporation,
        a public pharmacy products and services company                                                                                                                                                                                                                                                                                                                                                             
|Kevin J. ReinhartCalgary, AlbertaCanada                       | (3)
    (4) | Director | 2015 | 2013 to 2014, President & CEO,
        Director, Nexen Energy, a CNOOC Limited Company, a public oil and gas company
        2012 to 2013, Interim President &
        CEO, Director, Nexen Inc., a public oil and gas company
        2009 to 2012, Executive Vice President
        & CFO, Nexen Inc., a public oil and gas company
        
        2005 to 2011, Director, Canexus Ltd.,
        a public chemical manufacturing and handling company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Catherine L. Williams
        Calgary, Alberta
        Canada | (3)
    (4) | Director | 2015 | Since 2015, Director of Enbridge Pipelines
        Inc., a subsidiary of Enbridge Inc., a public energy transportation company
        
        Since 2015, Trustee of Enbridge Commercial
        Trust, a subsidiary of Enbridge Inc., a public energy transportation company
        
        Since 2015, Director of Enbridge Income
        Partners GP Inc., a subsidiary of Enbridge Inc., a public energy transportation company
        
        Since 2010, Chair of Human Resources
        and Compensation Committee, Enbridge Inc., a public energy transportation company
        Since 2007, Director of Enbridge Inc.,
        a public energy transportation company
        Since 2007, Owner and Managing Director,
        Options Canada Ltd., a private investment company
        
        2009 to 2014, Director, Alberta Investment
        Management Corporation, an institutional investment fund manager
        
        2009 to 2012, Director, Tim Hortons
        Inc., a publicly-traded restaurant chain in North America



Committees:

| | (1) | Chairman
                                         of the Board
| | --- | --------------------------------------------------------------

| | (2) | Lead
                                         Director
| | --- | ------------------------------------------------------

| | (3) | Member
                                         of the Audit Committee
| | --- | ----------------------------------------------------------------------

| | (4) | Member
                                         of the Governance and Human Resources Committee
| | --- | -----------------------------------------------------------------------------------------------

| | (5) | Member
                                         of the Health, Safety and Environment Committee
| | --- | -----------------------------------------------------------------------------------------------

| | (6) | Member
                                         of the Independent Reserves Committee
| | --- | -------------------------------------------------------------------------------------



45


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Officers:



|Name
    andMunicipality of Residence                            | Office
    Held                                       | Principal
    Occupation During the Past Five Years                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|---------------------------------------------------------------- | ----------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Anthony (Tony) Marino
        Calgary, Alberta
        Canada    | President &
        Chief Executive Officer           | Since March 1, 2016, President and Chief Executive
        Officer
        March 2014 – March 1, 2016, President and
        Chief Operating Officer of Vermilion
        June 2012 – March 2014, Executive Vice President and Chief Operating Officer of Vermilion
        2009 to 2012, Director, President & CEO, Baytex Energy Corporation, a public oil and gas company                                                                                                                                                                                                       
|John D. Donovan
        Calgary, Alberta
        Canada          | Executive
    Vice PresidentBusiness Development      | Since
    2005, Executive Vice President, Business Development of Vermilion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Curtis W. Hicks
        Calgary, Alberta
        Canada          | Executive
    Vice President& Chief Financial Officer | Since
    2004, Executive Vice President and Chief Financial Officer of Vermilion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|Mona Jasinski
        Calgary, Alberta
        Canada            | Executive
    Vice PresidentPeople & Culture          | Since February 2015, Executive Vice
        President, People and Culture
        2011 to 2015, Executive Vice President People of Vermilion
        
        2009 to 2011, Vice President People
        of Vermilion                                                                                                                                                                                                                                                                                                                                                             
|Anthony (Dion) Hatcher
        Calgary, Alberta
        Canada   | Vice
    PresidentCanada Business Unit                | Since March 1, 2016, Vice President
        Canada Business Unit
        
        May 1, 2014 to March 1, 2016, Director
        Alberta Foothills – Canada Business Unit
        
        February 2013 to May 2014, Cardium
        / LRG Development Manager
        January 2010 to February 2013 – Cardium Development Manager                                                                                                                                                                                                                                                
|Terry Hergott
        Calgary, Alberta
        Canada            | Vice President
        Marketing                      | Since April 2012, Vice President, Marketing
        of Vermilion
        
        1998 to 2012, Canadian Supply and Trading
        Manager, Marathon Petroleum Corp.                                                                                                                                                                                                                                                                                                                                                                                                              
|Michael
    KaluzaCalgary, AlbertaCanada                         | Executive
    Vice President& Chief Operating Officer | Since March 1, 2016, Executive Vice
        President and Chief Operating Officer
        May 2014 – March 1, 2016, Vice President, Canada Business Unit of Vermilion
        2013 to 2014, Director Canadian Business Unit of Vermilion
        2012 to 2013, Vice President, Corporate Development and Planning, Baytex Energy Corporation, a public oil and gas company
        2011 to 2012, Vice President, Planning, Baytex Energy Corporation, a public oil and gas company
        2006 to 2011, Chief Operating Officer, Delphi Energy Corp., a public oil and gas company
|Gerard Schut
        Den Haag
        The Netherlands            | Vice President
        European Operations            | Since July 2012, Vice President European
        Operations of Vermilion
        
        August 2006 to May 2012, General Manager,
        Chevron Exploration and Production Netherlands, a subsidiary of Chevron Corporation, a public oil and gas company                                                                                                                                                                                                                                                                                                                      
|Robert J. Engbloom, Q.C.
        Calgary, Alberta
        Canada | Corporate
    Secretary                               | Since January 2015, senior partner
        with Norton Rose Fulbright Canada LLP, a law firm
        2012 to 2014, partner with and Deputy Chair of Norton Rose Fulbright Canada LLP, a law firm
        
        1999 to 2011, partner with Macleod
        Dixon LLP, a law firm                                                                                                                                                                                                                                                                                                 



Common Shares

The Company is authorized to issue an unlimited number of common shares. Each common share entitles the holder to receive notice
of and to attend all meetings of Shareholders and to one vote at any such meeting. The holders of common shares are, at the discretion
of the board and subject to applicable legal restrictions, entitled to receive any dividends declared by the board on the common
shares. The holders of common shares will be entitled to share equally in any distribution of the assets of the Company upon the
liquidation, dissolution, bankruptcy or winding-up of the Company or other distribution of its assets among the Shareholders for
the purpose of winding-up the Company’s affairs.



46


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Cash Dividends



The Company expects to pay dividends
on a monthly basis. All decisions with respect to the declaration of dividends on the common shares will be made by the board
on the basis of the Company's net earnings, financial requirements and other conditions existing at such future time, planned
acquisitions, income tax payable by the Company, crude oil and natural gas prices and access to capital markets, as well as the
satisfaction of solvency tests imposed by the ABCA on corporations for the declaration and payment of dividends. It is expected
that the dividends will be "eligible dividends" for income tax purposes and thus qualify for the enhanced gross-up and
tax credit regime for certain Shareholders.



Record of Cash Dividends



The following table sets forth the
amount of cash distributions per Unit for the specified periods declared by the Trust since the completion of the 2003 Arrangement
on January 22, 2003 and the cash dividends per common share for the specified periods declared by the Company since the completion
of the Conversion Arrangement on September 1, 2010. Dividends are generally paid on the 15th day of the month following the month
of declaration. Until the December 14, 2007 distribution announcement, Vermilion had paid distributions of $0.17 per Trust Unit
per month. From the January 15, 2008 payment date and onwards, Vermilion paid distributions of $0.19 per Trust Unit and dividends
of $0.19 per common share, in each case per month (as applicable). In January 2013, Vermilion increased its dividend to $0.20
per common share effective for the January 2013 dividend paid on February 15, 2013. In November 2013, Vermilion announced that
its board had approved a 7.5% increase in the monthly dividend to $0.215 per common share per month effective for the January
2014 dividend paid on February 18, 2014. The monthly dividend was maintained at $0.215 per common share per month throughout 2015.



|Period                                          | Distribution
    Amount for Period per Trust Unit
|----------------------------------------------- | -------------------------------------------------
|As
    Vermilion Energy Trust                   |                                                  
|2003
    – January 22 to December 31            | $1.87                                            
|2004
    – January to December                  | $2.04                                            
|2005
    – January to December                  | $2.04                                            
|2006
    – January to December                  | $2.04                                            
|2007
    – January to December                  | $2.06                                            
|2008
    – January to December                  | $2.28                                            
|2009
    – January to December                  | $2.28                                            
|2010
    – January to September(1)              | $1.71                                            
|Period                                          | Dividend
    Amount for Period per Common Share  
|As
    Vermilion Energy Inc.                    |                                                  
|2010
    – September to December(1)             | $0.57                                            
|2011
    – January to December                  | $2.28                                            
|2012
    – January to December                  | $2.28                                            
|2013
    – January to December                  | $2.40                                            
|2014
    – January to December                  | $2.57                                            
|2015
    – January to December                  | $2.58                                            
|2016
    – January to February                  | $0.43                                            
|Total
    cash dividends since January 22, 2003 | $29.43                                           



Note:

| | (1) | Total
                                         cash dividends paid out in 2010 by Vermilion and the Trust to a holder of a common share
                                         who was a former holder of a Trust Unit equals $2.28.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Premium DividendTM and Dividend
Reinvestment Plan



Under the Premium DividendTM
and Dividend Reinvestment Plan (the “Plan”), Eligible Shareholders who elect to participate in the Dividend Reinvestment
Component can continue to reinvest their dividends in common shares at an effective 3% discount to the Average Market Price (with
no broker commissions or trading costs), similar to our previous Dividend Reinvestment Plan (Vermilion’s Amended and Restated
Dividend Reinvestment Plan dated effective September 1, 2010 as amended effective February 27, 2014 (the “Previous DRIP”).



With the addition of the Premium
DividendTM Component, Eligible Shareholders will also have the option to reinvest their dividends in common shares which
will be exchanged for a premium cash payment equal to 101.5% of the reinvested dividends.  Under the Premium DividendTM
Component, shares will be issued at a 3.5% discount to the Average Market Price.  The shares will be presold at prevailing
market prices by the Plan Broker (Canaccord Genuity Corporation), who will then provide participating Shareholders with a premium
cash payment equal to 101.5% of their dividends, while the Plan Broker retains the balance of the discount as its fee.



Eligible Shareholders are not
required to participate in the Plan.  Eligible Shareholders who have not elected to participate in the Plan will continue
to receive their regular cash dividends in the usual manner.



47


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




The total cost of equity issuance
to Vermilion under the Dividend Reinvestment Component and the Premium DividendTM Component of the Plan will be 3% and 3.5%,
respectively.  The Premium DividendTM Component, when combined with the Dividend Reinvestment Component, is expected
to increase our access to the lowest cost sources of equity capital available.  While the Premium DividendTM is expected
to result in a modest amount of equity issuance (estimated to be less than 2% of shares outstanding in 2015), we believe it represents
the most prudent approach to preserving near-term balance sheet strength. We expect the Premium DividendTM to reduce cash
dividends by approximately $89 million during 2016.  We view implementation of a Premium DividendTM as a short term
measure to maintain our financial strength. Both components of our program can be suspended or prorated at the company’s
discretion, offering considerable flexibility.  We will actively monitor our ongoing needs and manage our continued use of
each component as circumstances dictate.



The amended Dividend Record Dates
are published and available on Vermilion’s website at www.vermilionenergy.com (under the heading “Investor
Relations” subheading “Dividends”) and will be included in the applicable news release announcing the approval
and declaration of any future dividend payments by Vermilion’s Board of Directors.



Each component of the Plan, which
is explained in greater detail in the complete Plan document available on Vermilion’s corporate website at www.vermilionenergy.com (under the heading “Investor Relations” subheading “DRIP”), is subject to eligibility restrictions,
applicable withholding taxes, prorating as provided for in the Plan, and other limitations on the availability of common shares
to be issued or purchased in certain events. Only Canadian-resident Shareholders may participate in the Premium DividendTMComponent of the Plan. The Dividend Reinvestment Component of the Plan is available to Canadian residents and non-U.S. resident
foreign Shareholders who meet certain eligibility criteria as set forth in the complete Plan. U.S. resident Shareholders are not
currently permitted to participate in either component of the Plan.  This is due to the requirement, under U.S. securities
regulations, to maintain a continuous shelf registration for issuance of new equity to U.S. Shareholders.  At this time,
Vermilion has not put in place the required shelf registration due to the  high cost of establishing and maintaining such
a shelf registration.  We will continue to monitor the relative cost-benefit of such a registration as we go forward.



In order to participate in either
the Premium DividendTM Component or the Dividend Reinvestment Component, an Eligible Shareholder must enroll, or be deemed
to have enrolled (in the case of the Dividend Reinvestment Component), in the Plan at least five business days prior to the relevant
Dividend Record Date directly (in the case of registered Shareholders) or indirectly through the broker, investment dealer, financial
institution or other nominee who holds common shares on the Eligible Shareholder's behalf.



A registered Eligible Shareholder
who was enrolled in the Previous DRIP will automatically be deemed to be a participant in the Dividend Reinvestment Component
of the Plan, without any further action on their part. A beneficial owner of common shares (i.e., a holder of common shares that
are not registered in the beneficial owner's name but are instead held through a broker, investment dealer, financial institution
or other nominee) who was validly enrolled, through the nominee holder, in the Previous DRIP should contact such nominee holder
to confirm continued participation in the Dividend Reinvestment Component of the Plan.



For more information on the Plan,
defined meanings for capitalized terms above, eligibility restrictions and enrollment information among other details of the Plan,
please refer to the complete copy of the Plan as well as a related series of Questions and Answers available on Vermilion’s
website at www.vermilionenergy.com (under the heading “Investor Relations” subheading “DRIP”).



Eligible Shareholders may, after
electing to participate in the Plan, terminate their participation by written notice to the Plan Agent. That notice, if received
by the Plan Agent no later than five (5) business days prior to a Dividend Record Date, will have effect for the dividend to be
made on the following Dividend Payment Date. Thereafter, dividends to those Shareholders will be in cash. The Company may amend,
suspend or terminate the Plan at any time upon not less than 30 days prior written notice (sent by mail to Plan participants at
the most recent address), provided that any amendment to the Plan must be approved by the TSX and no amendment, modification or
suspension shall have retroactive effect if it would prejudice the interests of the participants. The Company is not required
to issue common shares into any jurisdiction where the issuance would be contrary to applicable laws.



TMdenotes trademark of Canaccord Genuity Capital Corporation.



48


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Shareholder Rights Plan



A unitholder Rights Plan was first
implemented in 2003 in conjunction with the 2003 Arrangement. At each of the annual and special meetings of holders of Trust Units
held in 2006 and 2009, the unitholders Rights Plan was renewed and approved by holders of the Trust Units. In conjunction with
the Conversion Arrangement, the Rights Plan for the Company was approved. In 2013, Shareholders approved the amendment and restatement
of the Rights Plan and ratified the continuation of the Shareholder Rights Plan Agreement for another three years. The objectives
of the Rights Plan are to ensure, to the extent possible, that all Shareholders are treated equally and fairly in connection with
any takeover bid for the Company. Takeover bids may be structured to be coercive or may be initiated at a time when the board
of directors of Vermilion will have a difficult time preparing an adequate response to the offer. Accordingly, such offers do
not always result in Shareholders receiving equal or fair treatment or full or maximum value for their investment. Under current
Canadian securities legislation, a takeover bid is required to remain open for 35 days, a period of time which may be insufficient
for the directors to:



| | (a) | evaluate a takeover bid (particularly
                                         if it includes share or trust unit consideration);
| | --- | ---------------------------------------------------------------------------------------------------------------------------------



| | (b) | explore, develop and pursue alternatives
                                         which are superior to the takeover bid and which could maximize Shareholder value; and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (c) | make reasoned recommendations to the
                                         Shareholders.
| | --- | -------------------------------------------------------------------------------------------



The Rights Plan discourages discriminatory,
coercive or unfair takeovers of the Company and gives the board of directors of Vermilion time if, in the circumstances, the board
of directors determines it is appropriate to take such time, to pursue alternatives to maximize Shareholder value in the event
an unsolicited takeover bid is made for all or a portion of the outstanding common shares of the Company. As set forth in detail
below, the Rights Plan discourages coercive hostile takeover bids by creating the potential that any common shares which may be
acquired or held by such a bidder will be significantly diluted. The potential for significant dilution to the holdings of such
a bidder can occur as the Rights Plan provides that all holders of common shares who are not related to the bidder will be entitled
to exercise rights issued to them under the Rights Plan and to acquire common shares at a substantial discount to prevailing market
prices. The bidder or the persons related to the bidder will not be entitled to exercise any Rights under the Rights Plan. Accordingly,
the Rights Plan will encourage potential bidders to make takeover bids by means of a Permitted Bid (as defined below) or to approach
the board of directors of Vermilion to negotiate a mutually acceptable transaction. The Permitted Bid provisions of the Rights
Plan are designed to ensure that, in any takeover bid for outstanding common shares of the Company, all Shareholders are treated
equally and are given adequate time to properly assess such takeover bid on a fully-informed basis.



The Rights Plan was not proposed
in response to, or in anticipation of, any pending, threatened or proposed acquisition or takeover bid. The board of directors
did not adopt the Rights Plan to prevent a takeover of the Company, to secure the continuance of management or the directors of
the Company in their respective offices or to deter fair offers for the common shares of the Company.



Summary of the Plan



The following summary of terms of
the Rights Plan is qualified in its entirety by reference to the text of the Shareholder Rights Plan Agreement. A copy of the
Shareholder Rights Plan Agreement is available on SEDAR at www.sedar.com.



Term



The Rights Plan will remain in effect
until termination of the annual meeting of Shareholders of the Company in 2016 unless the continuation of the Shareholder Rights
Plan Agreement for another three years is ratified by resolution of Shareholders.





As
of the date of this annual information form Vermilion is evaluating amendments announced February 25, 2016 to the Canadian regime
governing the conduct of take-over bids and the impact on the Rights Plan. Provided all necessary approvals are obtained, the
Canadian Securities Administrators expect the take-over bid regime amendments will come into force on May 9, 2016. Further information
with respect to the Rights Plan will be set forth in the management proxy circular of the Company for the annual meeting of Shareholders
to be held on May 6, 2016, including any recommendations for the continuation (or continuation and amendment) of the Rights Plan
beyond the termination of the annual meeting of Shareholders in May, 2016. Vermilion expects the 2016 annual meeting management
proxy circular will be mailed and filed on the Company’s SEDAR (www.sedar.com) profile by mid-April, 2016.





Issue of Rights



One right (a "Right")
has been issued by the Company pursuant to the Shareholder Rights Plan Agreement in respect of each common share of the Company
outstanding at the close of business on September 1, 2010 (the "Record Time"). One Right will also be issued for each
additional common share issued after the Record Time and prior to the earlier of the Separation Time (as defined below) or the
date that a majority of the Shareholders vote against the continued existence of the Shareholder Rights Plan Agreement.



Rights Exercise Privilege



The Rights will separate from the
voting common shares to which they are attached and become exercisable at the time (the "Separation Time") which is
10 trading days following the date a person becomes an Acquiring Person (as defined below) or announces an intention to make a
takeover bid that is not an acquisition pursuant to a takeover bid permitted by the Rights Plan (a "Permitted Bid").



49


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Any transaction or event in which
a person (an "Acquiring Person"), including associates and affiliates and others acting in concert, acquires (other
than pursuant to an exemption available under the Rights Plan or a Permitted Bid) Beneficial Ownership (as defined in the Rights
Plan) of 20% or more of the voting securities of the Company is referred to as a "Flip-in Event". Any Rights held by
an Acquiring Person on or after the earlier of the Separation Time or the first date of public announcement by the Company or
an Acquiring Person that an Acquiring Person has become such, will become void and the Rights (other than those held by the Acquiring
Person) will permit the holder to purchase common shares at a substantial discount to their prevailing market price at the time.



The issuance of the Rights is not
dilutive and will not affect reported earnings or cash flow per common share until the Rights separate from the underlying common
shares and become exercisable or until the exercise of the Rights. The issuance of the Rights will not change the manner in which
Shareholders currently trade their common shares.



Permitted Lock-Up Agreement



A person will not become an Acquiring
Person by virtue of having entered into an agreement (a "Permitted Lock-Up Agreement") with a Shareholder whereby the
Shareholder agrees to deposit or tender voting common shares to a takeover bid made by such person, provided that the agreement
meets certain requirements including:



| | (a) | the terms of the agreement are publicly
                                         disclosed and a copy of the agreement is publicly available;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------



| | (b) | the Shareholder who has agreed to
                                         tender voting common shares to the takeover bid (the "Lock-Up Bid") made by
                                         the other party to the agreement is permitted to terminate its obligation under the agreement
                                         in order to tender voting common shares to another takeover bid or transaction where:
                                         (i) the offer price or value of the consideration payable under the other takeover bid
                                         or transaction is greater than the price or value of the consideration per common share
                                         at which the Shareholder has agreed to deposit or tender voting common shares to the
                                         Lock-Up Bid or is equal to or greater than a specified minimum which is not more than
                                         7% higher than the offer price under the Lock-Up Bid; and (ii) if the number of voting
                                         common shares offered to be purchased under the Lock-Up Bid is less than all of the voting
                                         common shares held by Shareholders (excluding common shares held by the offeror), the
                                         number of voting common shares offered to be purchased under the other takeover bid or
                                         transaction (at an offer price not lower than in the Lock-Up Bid) is greater than the
                                         number of voting common shares offered to be purchased under the Lock-Up Bid or is equal
                                         to or greater than a specified number which is not more than 7% higher than the number
                                         of voting common shares offered to be purchased under the Lock-Up Bid; and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (c) | no break-up fees or other penalties
                                         that exceed in the aggregate the greater of 2.5% of the price or value of the consideration
                                         payable under the Lock-Up Bid and 50% of the increase in consideration resulting from
                                         another takeover bid or transaction shall be payable by the Shareholder if the Shareholder
                                         fails to deposit or tender voting common shares to the Lock-Up Bid.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Certificates and Transferability



Prior to the Separation Time, the
Rights will be evidenced by a legend imprinted on certificates for common shares issued from and after the effective date (the
"Effective Date") of the Shareholder Rights Plan Agreement (being the later of the date of the Shareholder Rights Plan
Agreement and the receipt by the Company of all regulatory approvals with respect to the Shareholder Rights Plan Agreement). Rights
are also attached to common shares outstanding on the Effective Date, although certificates issued prior to the Effective Date
will not bear such a legend. Shareholders are not required to return their certificates in order to have the benefit of the Rights.
Prior to the Separation Time, Rights will trade together with the Company common shares and will not be exercisable or transferable
separately from the common shares. From and after the Separation Time, the Rights will become exercisable, will be evidenced by
Rights Certificates and will be transferable separately from the common shares.



50


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015










Permitted Bid Requirements



The requirements of a "Permitted Bid"
include the following:



| | (a) | the takeover bid must be made by means of a takeover bid circular;
| | --- | ------------------------------------------------------------------



| | (b) | the takeover bid is made to all holders of voting common shares as registered on the books of the
Company, other than the offeror;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------



| | (c) | the takeover bid contains a provision that no voting common shares will be taken up or paid
                                                            for pursuant to the takeover bid prior to the close of business on the date that is no earlier than the later of 35 days
                                                            after the date of the takeover bid and 60 days following the date of the takeover bid and only if at such date more than 50%
                                                            of the voting common shares held by independent Shareholders shall have been deposited or tendered pursuant to the takeover
                                                            bid and not withdrawn and have previously been or are taken up at the same time;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (d) | the takeover bid contains a provision that unless the takeover bid is withdrawn, voting common
shares may be deposited pursuant to such takeover bid at any time during the period of time between the date of the takeover bid
and the date on which voting common shares may be taken up and paid for and that any voting common shares deposited pursuant to
the takeover bid may be withdrawn until taken up and paid for; and
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (e) | the takeover bid contains a provision that if, on the date on which voting common shares may
                                                            be taken up and paid for, more than 50% of the voting common shares held by independent Shareholders have been deposited or
                                                            tendered pursuant to the takeover bid and not withdrawn, the offeror will make a public announcement of that fact and the
                                                            takeover bid                                                             will be extended to remain open for deposits and
                                                            tenders of voting common shares for not less than ten business days from the
                                                            date of such public announcement.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The Rights Plan allows for a competing Permitted
Bid (a "Competing Permitted Bid") to be made while a Permitted Bid is in existence. A Competing Permitted Bid must satisfy
all of the requirements of a Permitted Bid and include a provision that no voting shares will be taken up or paid for pursuant
to the takeover bid prior to the close of business on the date that is earlier than the later of 35 days after the date of the
takeover bid constituting the Competing Permitted Bid and 60 days following the date on which the earliest Permitted Bid or Competing
Permitted Bid which preceded the Competing Permitted Bid was made.



Waiver and Redemption



If a potential offeror does not desire to
make a Permitted Bid, it can negotiate with, and obtain the prior approval of, the board of directors to make a takeover bid by
way of a takeover bid circular sent to all holders of voting common shares on terms which the board of directors considers fair
to all Shareholders. In such circumstances, the board of directors may waive the application of the Rights Plan thereby allowing
such bid to proceed without dilution to the offeror. Any waiver of the application of the Rights Plan in respect of a particular
takeover bid shall also constitute a waiver of any other takeover bid which is made by means of a takeover bid circular to all
holders of voting common shares while the initial takeover bid is outstanding. The board of directors may also waive the application
of the Rights Plan in respect of a particular Flip-in Event that has occurred through inadvertence, provided that the Acquiring
Person that inadvertently triggered such Flip-in Event reduces its beneficial holdings to less than 20% of the outstanding voting
common shares of the Company within 14 days or such earlier or later date as may be specified by the board. With the prior consent
of the holders of voting common shares, the board of directors may, prior to the occurrence of a Flip-in Event that would occur
by reason of an acquisition of voting common shares otherwise than pursuant to the foregoing, waive the application of the Rights
Plan to such Flip-in Event.



The board of directors may, with the prior
consent of the holders of voting common shares, at any time prior to the occurrence of a Flip-in Event, elect to redeem all but
not less than all of the then outstanding Rights at a redemption price of $0.00001 per Right. Rights are deemed to be redeemed
following completion of a Permitted Bid, a Competing Permitted Bid or a takeover bid in respect of which the board of directors
has waived the application of the Rights Plan.



Exemptions for Investment Advisors



Investment advisors (for client accounts),
trust companies (acting in their capacity as trustees or administrators), statutory bodies whose business includes the management
of funds (for employee benefit plans, pension plans, or insurance plans of various public bodies) and administrators or trustees
of registered pension plans or funds acquiring greater than 20% of the voting common shares are exempted from triggering a Flip-in
Event, provided they are not making, either alone or jointly or in concert with any other person, a takeover bid.



51


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Board of Directors



The adoption of the Rights Plan does not
in any way lessen or affect the duty of the board of directors to act honestly and in good faith with a view to the best interests
of the Company. The board of directors, when a takeover bid or similar offer is made, will continue to have the duty and power
to take such actions and make such recommendations to Shareholders as are considered appropriate.



Amendment



The Company may, with the prior approval
of Shareholders (or the holders of Rights if the Separation Time has occurred), supplement, amend, vary or delete any of the provisions
of the Shareholder Rights Plan Agreement. The Company may make amendments to the Shareholder Rights Plan Agreement at any time
to correct any clerical or typographical error or, subject to confirmation at the next meeting of Shareholders, make amendments
which are required to maintain the validity of the Shareholder Rights Plan Agreement due to changes in any applicable legislation,
regulations or rules.



52


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




AUDIT COMMITTEE MATTERS



Audit Committee Charter



Vermilion has established an audit committee
(the "Audit Committee") to assist the board of directors in carrying out its oversight responsibilities with respect
to, among other things, financial reporting, internal controls and the external audit process of the Company. The Audit Committee
Terms of Reference are set out in Schedule "C" to this annual information form.



Composition of the Audit Committee



The following table sets forth the name
of each current member of the Audit Committee, whether pursuant to applicable securities legislation, such member is considered
independent, whether pursuant to applicable securities legislation, such member is considered financially literate and the relevant
education and experience of such member.



|Name                       | Independent | Financially
        Literate | Relevant
    Education and Experience                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-------------------------- | ----------- | ---------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Joseph
    F. Killi(Chair) | Yes         | Yes                          | Mr. Killi
    holds a Bachelor of Science degree in Biochemistry from Loyola Collage, a Bachelor of Commerce degree from Concordia University
    and a Chartered Accountant designation.  As a Chartered Accountant, Mr. Killi attained experience in preparing,
    auditing, analyzing and evaluating financial statements including internal controls and procedures for financial reporting.  Mr. Killi
    has an understanding of the accounting principles used by the Company as well as the implications of those accounting principles
    on the Company's financial results.  Mr. Killi has also obtained significant financial experience and exposure to
    accounting and financial issues in a number of senior positions with Parkbridge Lifestyle Communities Inc., Realex Properties
    Corp. and Trizec Corporation and in his role as a director and audit committee member of other public and private companies.                                                                                                                                                                                                                                                                                                                                
|Claudio
    A. Ghersinich  | Yes         | Yes                          | Mr.
    Ghersinich holds a B.Sc. Civil Engineering degree from the University of Manitoba.  Mr. Ghersinich has obtained
    financial experience and exposure to accounting and financial issues in a role as a founder of Vermilion Resources Ltd. in
    1994 and as an audit committee member of other public companies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|Kevin
    J. Reinhart      | Yes         | Yes                          | Mr.
    Reinhart holds a Bachelor of Commerce degree from Saint Mary’s University in Halifax. He earned his Chartered Accountant
    designation in 1985 and is a member of Institute of Chartered Accountants of Alberta.  Mr. Reinhart brings 32 years
    of combined experience in the oil and gas industry and financial services sector, with an extensive background in leadership,
    strategy and growth, finance, international activities, exploration, sustainability, corporate relations and marketing. In
    2012, Mr. Reinhart was named interim President and CEO as well as director of Nexen Inc. Following the sale of Nexen Inc.
    in 2013, he was promoted to the role of President and CEO (for Nexen Energy, a CNOOC Limited Company), a position he held
    up until his retirement in 2014. Prior to 2012, Mr. Reinhart had held the roles of Executive Vice President and CFO (2009-2012)
    and Senior Vice President, Corporate Planning and Business Development (2002-2009). Prior to 2002, Mr. Reinhart served in
    various capacities as a member of Nexen’s executive management team including Controller, Director of Risk Management
    and Treasurer.  From 2005 to 2011, Mr. Reinhart served as a director of Canexus Ltd.
|Catherine
    L. Williams  | Yes         | Yes                          | Ms.
    Williams has a Bachelor of Arts degree from University of Western Ontario and a Masters in Business Administration from the
    Queen’s University.  Ms. Williams brings 31 years of oil and gas industry experience, with an extensive background
    in finance, mergers and acquisitions, and business management.  Ms. Williams is currently the Owner and Managing
    Director of Options Canada Ltd. (since 2007) and serves as a Board member of Enbridge Inc. (since 2010) and Chairs their Human
    Resources and Compensation Committee.  She was a Board member of Alberta Investment Management Corporation from
    2009 to 2014 and Tim Hortons Inc. from 2009 to 2012. From 2003 to 2007, Ms. Williams held the role of Chief Financial Officer
    for Shell Canada Ltd., prior to which she held various positions with Shell Canada Limited, Shell Europe Oil Products, Shell
    Canada Oil Products and Shell International (1984 to 2003).                                                                                                                                                                                                                                                                                                 



External Audit Service Fees



Prior to the commencement of any work, fees
for all audit and non-audit services provided by the Company’s auditors must be approved by the Audit Committee. During the
years ended December 31, 2015 and 2014, Deloitte LLP, the auditors of the Company, received the following fees from the Company:



|Item                  | 2015       | 2014      
|--------------------- | ---------- | ----------
|Audit fees(1)         | $1,560,759 | $1,582,647
|Audit-related fees(2) | $80,698    | $162,000  
|Tax fees(3)           | $55,020    | $69,300   



Notes:

| | (1) | Audit fees consisted of professional services rendered by Deloitte LLPfor the audit of the Company's financial statements for the years ended December 31, 2015 and 2014.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | Audit-related fees consist of fees for the review of the quarterly financial statements, services
provided in connection with statutory and regulatory filings or engagements and fees for review services. Fees also may include
services related to review of accounting research and accounting publications.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | Tax fees consist of fees for tax compliance services in various jurisdictions.
| | --- | ------------------------------------------------------------------------------





53


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




MARKET FOR PRICE RANGE AND TRADING VOLUME
OF SECURITIES



The outstanding common shares of the Company
are listed and posted for trading on the TSX and the NYSE under the symbol VET. The following table sets forth the closing price
range and trading volume of the common shares on the TSX for the periods indicated:





|2015      | High   | Low    | Close  | Volume    
|--------- | ------ | ------ | ------ | ----------
|January   | $59.02 | $45.66 | $55.97 | 8,638,252 
|February  | $62.80 | $53.00 | $56.22 | 8,734,800 
|March     | $56.80 | $52.64 | $53.25 | 6,869,845 
|April     | $59.74 | $53.14 | $58.08 | 8,647,133 
|May       | $58.27 | $52.03 | $53.37 | 5,905,150 
|June      | $56.65 | $51.56 | $53.95 | 6,349,618 
|July      | $54.04 | $41.61 | $44.00 | 8,331,551 
|August    | $47.91 | $37.55 | $45.58 | 8,839,000 
|September | $45.41 | $40.18 | $42.97 | 6,923,709 
|October   | $49.94 | $41.26 | $46.01 | 8,341,476 
|November  | $48.83 | $38.35 | $39.99 | 9,443,837 
|December  | $40.99 | $32.57 | $37.61 | 10,401,924
|2016      | High   | Low    | Close  | Volume    
|January   | $38.18 | $29.71 | $37.46 | 10,885,419
|February  | $37.80 | $31.56 | $36.80 | 8,931,986 



Awards (entitling the holder thereof to
receive common shares) have been issued under the Vermilion Incentive Plan. See the note regarding equity compensation plans in
Vermilion's annual financial statements for further details regarding the amount and value of such awards.



CREDIT RATINGS



The following information relating to the
Company's credit ratings is provided as it relates to the Company's financing costs, liquidity and operations. Specifically, credit
ratings affect the Company's ability to obtain short-term and long-term financing and the cost of such financing.  Additionally,
the ability of the Company to engage in certain collateralized business activities on a cost effective basis depends on the Company's
credit ratings.  A reduction in the current rating on the Company's debt by its rating agencies, particularly a downgrade
below current ratings, or a negative change in the Company's ratings outlook could adversely affect the Company's cost of financing
and its access to sources of liquidity and capital.  In addition, changes in credit ratings may affect the Company's ability
to, and the associated costs of, (i) entering into ordinary course derivative or hedging transactions and may require the Company
to post additional collateral under certain of its contracts, and (ii) entering into and maintaining ordinary course contracts
with customers and suppliers on acceptable terms.



The Senior Unsecured Notes had a rating
of BB (low)/Stable trend from DBRS Limited ("DBRS") and BB-/stable outlook from Standard & Poor's Ratings Services,
a division of The McGraw-Hill Companies (Canada) Corporation ("S&P").  On February 10, 2016 the Senior Unsecured
Notes were fully repaid in accordance with the terms of the indenture and accordingly the ratings have been discontinued as of
that date.



DBRS rates long-term debt instruments by
rating categories ranging from a high of "AAA" to a low of "D". All rating categories other than AAA and D
also contain subcategories "(high)" and "(low)".  The absence of either a "(high)" or "(low)"
designation indicates the rating is in the middle of the category.  A rating of "BB" is characterized by DBRS to
be speculative, non-investment-grade credit quality.  The capacity for the payment of financial obligations is uncertain and
vulnerable to future events.  The "BB" category is the fifth highest of the ten available categories.



S&P rates long-term debt instruments
by rating categories ranging from a high of "AAA" to a low of "D". The ratings from AA to CCC may be modified
by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.  An obligation
rated "BB" is characterized as less vulnerable to nonpayment than other speculative issues.  However, it faces major
ongoing uncertainties or exposure to adverse business, financial, or economic conditions, which could lead to the obligor's inadequate
capacity to meet its financial commitment on the obligation.  The "BB" category is the fifth highest of the ten
available categories.



54


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Vermilion Rating



DBRS Limited has provided a corporate credit
rating of Vermilion of “BB (low”) with a stable trend.  A rating of “BB” is characterized by DBRS
Limited to be speculative, non-investment-grade credit quality.  The capacity for the payment of financial obligations is
uncertain and vulnerable to future events.



S&P has assigned a corporate credit
rating of Vermilion of “BB-” with a stable outlook.  An obligor rated “BB” is characterized by S&P
as less vulnerable in the near term than other lower-rated obligors.  However, it faces major ongoing uncertainties and exposure
to adverse business, financial or economic conditions, which could lead to the obligor’s inadequate capacity to meet its
financial commitments.  The plus (+) or minus (-) modifiers indicate the relative standing within the assigned category. 
In addition, S&P may add a rating outlook of “positive”, “negative” or “stable” which assesses
the potential direction of a long-term credit rating over the intermediate term (typically six months to two years).



Credit ratings are intended to provide
investors with an independent measure of the credit quality of an issuer of securities. The credit ratings accorded to the Senior
Unsecured Notes and the Company are not recommendations to purchase, hold or sell such securities and are not a comment upon the
market price of the Company's securities or their suitability for a particular investor. There is no assurance that any rating
will remain in effect for any given period of time or that any rating will not be revised or withdrawn entirely by a rating agency
in the future if, in its judgment, circumstances so warrant. A revision or withdrawal of a credit rating could have a material
adverse effect on the pricing or liquidity of the Senior Unsecured Notes or the common shares in any secondary markets. Vermilion
does not undertake any obligation to maintain the ratings or to advise holders of the Senior Unsecured Notes or the common shares
of any change in ratings. Each agency's rating should be evaluated independently of any other agency's rating.



CONFLICTS OF INTEREST



The directors and officers of Vermilion
are engaged in and will continue to engage in other activities in the oil and natural gas industry and, as a result of these and
other activities, the directors and officers of Vermilion may become subject to conflicts of interest. The ABCA provides that in
the event that a director has an interest in a contract or proposed contract or agreement, the director shall disclose his interest
in such contract or agreement and shall refrain from voting on any matter in respect of such contract or agreement unless otherwise
provided under the ABCA. To the extent that conflicts of interest arise, such conflicts will be resolved in accordance with the
provisions of the ABCA.



As at the date hereof, Vermilion is not
aware of any existing or potential material conflicts of interest between Vermilion and a director or officer of Vermilion.



INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL
TRANSACTIONS



No director or officer of the Company, nor
any other insider of the Company, nor their associates or affiliates has or has had, at any time within the three most recently
completed financial years ending December 31, 2015, any material interest, direct or indirect, in any transaction or proposed transaction
that has materially affected or would materially affect the Company.



LEGAL PROCEEDINGS



The Company is not party to any significant
legal proceedings as of March 4, 2016.



MATERIAL CONTRACTS



The Company has not entered into any material
contracts outside its normal course of business.



INTERESTS OF EXPERTS



As at the date hereof, principals of GLJ,
the independent engineers for the Company, personally disclosed in certificates of qualification that they neither had nor expect
to receive any common shares. The principals of GLJ and their employees (as a group) beneficially own less than one percent of
any of the Company’s securities. Deloitte LLP is the auditor of the Company and is independent within the meaning of the
Rules of Professional Conduct of the Chartered Professional Accountants of Alberta.



TRANSFER AGENT AND REGISTRAR



The transfer agent and registrar for the
Company’s common shares is Computershare Trust Company of Canada at its principal offices in Calgary, Alberta and Toronto,
Ontario.



55


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




RISK FACTORS



The following is a summary of certain risk
factors relating to the business of the Company. The following information is a summary only of certain risk factors and is qualified
in its entirety by reference to, and must be read in conjunction with, the detailed information appearing elsewhere in this annual
information form. Additional risks and uncertainties not currently known to Vermilion that it currently views as immaterial may
also materially and adversely affect its business, financial condition and/or results of operations. Shareholders and potential
Shareholders should consider carefully the information contained herein and, in particular, the following risk factors.



Reserve Estimates



There are numerous uncertainties inherent
in estimating quantities of proved and probable reserves and future net revenues to be derived therefrom, including many factors
beyond the Company's control. The reserve and future net revenue information set forth in this annual information form represents
estimates only. The reserves and estimated future net cash flow from the Company's properties have been independently evaluated
by GLJ with an effective date of December 31, 2015. These evaluations 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 and natural gas, operating costs, well abandonment and salvage values,
royalties and other government levies that may be imposed over the producing life of the reserves. These assumptions were based
on prices in use at the date the GLJ Report was prepared, and many of these assumptions are subject to change and are beyond the
Company's control. Actual production and cash flow derived therefrom will vary from these evaluations, and such variations could
be material.



Estimates with respect to reserves that
may be developed and produced in the future are often based upon volumetric calculations, probabilistic methods and upon analogy
to similar types of reserves, rather than upon actual production history. Estimates based on these methods generally are less reliable
than those based on actual production history. Subsequent evaluation of the same reserves based upon production history will result
in variations, which may be material, in the estimated reserves.



Reserve estimates may require revision based
on actual production experience. Such figures have been determined based upon assumed commodity prices and operating costs.



The present value of estimated future net
revenue referred to in this annual information form should not be construed as the fair market value of estimated crude oil and
natural gas reserves attributable to the Company's properties. The estimated discounted future revenue from reserves are based
upon price and cost estimates which may vary from actual prices and costs and such variance could be material. Actual future net
revenue will also be affected by factors such as the amount and timing of actual production, supply and demand for crude oil and
natural gas, curtailments or increases in consumption by purchasers and changes in governmental regulations and taxation.



Uncertainty of Contingent Resource Estimates



Information regarding quantities of contingent
resources included in the Appendix to this Annual Information Form are estimates only. References to “contingent resources”
do not constitute, and should be distinguished from, references to “reserves”. The same uncertainties inherent in estimating
quantities of reserves apply to estimating quantities of contingent resources. In addition, there are contingencies that prevent
resources from being classified as reserves. There is no certainty that it will be commercially viable to produce any portion of
the contingent resources due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental,
political and regulatory matters or a lack of markets. Actual results may vary significantly from these estimates and such variances
could be material.



Volatility of Oil and Natural Gas Prices



The Company's operational results and financial
condition are dependent on the prices received for oil and natural gas production. Oil and natural gas prices have fluctuated materially
during recent years and are determined by supply and demand factors, including weather and general economic conditions as well
as conditions in other oil and natural gas regions. Any prolonged decline in oil and natural gas prices could have an adverse effect
on Vermilion's cash flow which could have the effect of decreasing dividends.



Changes in Legislation



There can be no assurance that income tax
laws and government incentive programs relating to the oil and gas industry in Canada and the foreign jurisdictions in which the
Company operates, will not be changed in a manner which adversely affects the Company.



56


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




The Governments of Alberta and Saskatchewan
receive royalties on production of natural resources from lands in which they own the mineral rights. A change in the royalty regime
resulting in an increase in royalties would reduce Vermilion's net earnings and could make future capital expenditures or Vermilion's
operations uneconomic and could, in the event of a material increase in royalties, make it more difficult to service and repay
outstanding debt or impair Vermilion’s ability to declare dividends. Any material increase in royalties would also significantly
reduce the value of the Company's associated assets.



The Government of Alberta released its Royalty
Review Advisory Panel Report on January 29, 2016 ("RRAP"). The RRAP recommends new rules coming into effect in 2017.
These highlights include providing royalty incentives for the efficient development of conventional crude oil, natural gas, and
NGL resources, no changes to the royalty structure of wells drilled prior to 2017 for a 10-year period from the royalty program's
implementation date, the replacement of royalty credits/holidays on conventional wells by a revenue minus cost framework with a
post-payout royalty rate based on commodity prices, the reduction of royalty rates for mature wells, and a neutral internal rate
of return for any given play compared to the current royalty framework. The RRAP recommended modernization of Alberta’s conventional
oil and gas royalty regime, but did not provide detail. The Government of Alberta has accepted the recommendations set out in the
RRAP and is expected to adopt those recommendations in spring 2016. It is not anticipated that the new rules will materially impact
Vermilion’s financial condition; however, the extent and magnitude of any adverse impacts shall be determined once details
on the new rules are released.



Government Regulations



Vermilion's operations are governed by many
levels of government, including municipal, state, provincial and federal governments in Canada, France, Germany, the Netherlands,
Australia, Ireland, and the United States. Vermilion is 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 Vermilion operates 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, decreases in production and increases in costs, and Vermilion may not be able
to fully execute its 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.



Competition



Vermilion actively competes for reserve
acquisitions, exploration leases, licences and concessions and skilled industry personnel with a substantial number of other oil
and gas companies, some of which have significantly greater financial resources than Vermilion. Vermilion's competitors include
major integrated oil and natural gas companies and numerous other independent oil and natural gas companies and individual producers
and operators.



Vermilion's ability to successfully bid
on and acquire additional property rights, to discover reserves, to participate in drilling opportunities and to identify and enter
into commercial arrangements with customers will be dependent upon developing and maintaining close working relationships with
its future industry partners and joint operators and its ability to select and evaluate suitable properties and to consummate transactions
in a highly competitive environment.



Operational Matters



The operation of oil and 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 Vermilion and possible liability to regulators and third parties. Vermilion maintains 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. Vermilion may become liable for damages arising
from such events against which it cannot insure or against which it may elect not to insure because of high premium costs or other
reasons. Costs incurred to repair such damage or pay such liabilities may impair Vermilion's ability to satisfy its debt obligations
or declare dividends.



Continuing production from a property, and
to some extent the marketing of production, are 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 the claim of Vermilion or its subsidiaries to certain properties.
Such circumstances could impair Vermilion's ability to satisfy its debt obligations or declare dividends.



57


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




In addition to the usual delays in payment
by purchasers of oil and natural gas to the operators of the properties, and by the operator to Vermilion, payments between any
of such parties may also be delayed by restrictions imposed by lenders, delays in the sale or delivery of products, delays in the
connection of wells to a gathering system, blowouts or other accidents, recovery by the operator of expenses incurred in the operation
of the properties or the establishment by the operator of reserves for such expenses.



Environmental Concerns



The oil and natural gas industry is subject
to environmental regulation pursuant to local, provincial, state and federal legislation. A breach of such legislation may result
in the imposition of fines, the issuance of clean up orders in respect of Vermilion or its assets, or the loss or suspension of
regulatory approvals. Such legislation may be changed to impose higher standards and potentially more costly obligations on Vermilion.
There can be no assurance that the Company will be able to satisfy its actual future environmental and reclamation obligations.



Vermilion expects to incur abandonment and
reclamation costs as existing oil and gas properties are abandoned and reclaimed. In 2015, expenditures beyond normal compliance
with environmental regulations were considered to be in the ordinary course of business. Vermilion does not anticipate material
expenditures beyond amounts paid in respect of normal compliance with environmental regulations in 2016.



The Government of Alberta released its Climate
Leadership Plan which will impact all consumers and businesses that contribute to carbon emissions in Alberta. This plan includes
imposing carbon pricing that is applied across all sectors, starting at $20 per tonne on January 1, 2017 and moving to $30 per
tonne on January 1, 2018, the phase-out of coal-fired power generation by 2030, a cap on oil sands emissions production of 100
megatonnes, and a 45 per cent reduction in methane emissions by the oil and gas sector by 2025. Vermilion expects the Climate Leadership
Plan to increase the cost of operating its properties located in Alberta and is currently evaluating the expected impact of this
plan on its results of operations.



Vermilion was named to the CDP Climate Disclosure
Leadership Index (“CDLI”), recognizing the depth and quality of our climate-related disclosure as compared to the 200
largest companies listed on the TSX. CDP (formerly Carbon Disclosure Project), is a global, not-for-profit organization that manages
the world’s only global environmental disclosure system. To be named to the CDLI, a company must have a disclosure score
within the top 10% of surveyed companies. Vermilion has voluntarily reported to CDP since 2012. We believe that by measuring and
understanding our current environmental profile, we can direct our business strategy to operate in an even more environmentally
and socially sustainable manner in the future.



Kyoto Protocol



Australia, Canada, France, Ireland, Germany
and the Netherlands are signatories to the United Nations Framework Convention on Climate Change and have all ratified the Kyoto
Protocol established thereunder. Australia, France, Ireland, Germany and the Netherlands, as Annex B parties to the Kyoto Protocol,
and Ireland, France, Germany and Netherlands as members of the European Union, are required to reduce their nation-wide emissions
of carbon dioxide, methane, nitrous oxide and other greenhouse gases. Canada formally withdrew from the Kyoto Protocol in 2012.
The Canadian federal government has indicated an intention to regulate the emissions of greenhouse gases from a range of industries
and has stated that it will work with the provinces to develop a portfolio of policies to reduce the greenhouse gas emissions intensity
of industrial facilities (the "Federal Plan"). At present, the status of the Federal Plan with respect to the oil and
gas industry is unclear. The Canadian federal government has repeatedly stated that it intends to align Canada's greenhouse gas
emissions reduction policies with those of the United States. As such, it is unclear when, or in what form, the Federal Plan will
be implemented or what impact it may have on Vermilion.



Vermilion's exploration and production facilities
and other operations and activities in North America, Europe and Australia will emit a small amount of greenhouse gasses which
may subject Vermilion to legislation regulating emissions of greenhouse gases and which may include a requirement to reduce emissions
or emissions intensity from Vermilion's operations and facilities. As such, Vermilion continues to evaluate and monitor regulatory
initiatives and overall trends so that it is aware of potential developments that could affect its business and operations.  It
is possible that future international, national, provincial or state emissions reduction requirements in jurisdictions that Vermilion
operates in may require further reductions of emissions or emissions intensity. The direct or indirect costs of complying with
emissions regulations may adversely affect the business of Vermilion in North America, Europe and Australia.



Discretionary Nature of Dividends



The declaration and payment (including the
amount thereof) of future cash dividends, if any, is subject to the discretion of the board of directors of the Company and may
vary depending on a variety of factors and conditions existing from time to time, including fluctuations in commodity prices, production
levels, capital expenditure requirements, debt service requirements, operating costs, royalty burdens, foreign exchange rates and
the satisfaction of the liquidity and solvency tests under the ABCA for the declaration and payment of dividends. Depending on
these and other factors considered relevant to the declaration and payment of dividends by the board of directors and management
of the Company (some or all of which may be beyond the control of the board of directors and management of the Company), the Company
may change its dividend policy from time to time. Any reduction of dividends may adversely affect the market price or value of
common shares.



58


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Debt Service



Vermilion may, from time to time, finance
a significant portion of its operations through debt. Amounts paid in respect of interest and principal on debt incurred by Vermilion
may impair Vermilion's ability to satisfy its other obligations. Variations in interest rates and scheduled principal repayments
could result in significant changes in the amount required to be applied to debt service before payment by Vermilion of its debt
obligations. Ultimately, this may result in lower levels of cash flow for the Company.



Lenders may be provided with security over
substantially all of the assets of Vermilion and its Subsidiaries. If Vermilion becomes unable to pay its debt service charges
or otherwise commits an event of default such as bankruptcy, a lender may be able to foreclose on or sell the assets of Vermilion
and/or its Subsidiaries.



Changes in Income Tax Laws



Income tax laws and administrative policies
may be changed in a manner which adversely affects the Company and/or Shareholders.



Depletion of Reserves



The Company has certain unique attributes
which differentiate it from other oil and gas industry participants. Dividends paid from cash flow generated in respect of properties,
absent commodity price increases or cost effective acquisition and development activities, may decline over time in a manner consistent
with declining production from typical crude oil, natural gas and natural gas liquids reserves. Accordingly, absent capital expenditures
or acquisitions of additional crude oil and natural gas properties, Vermilion's current production levels and reserves will decline.



Vermilion's future crude oil and natural
gas reserves and production, and therefore its cash flows, will be highly dependent on Vermilion's success in exploiting its reserve
base and acquiring additional reserves. Without reserve additions through acquisition or development activities, Vermilion's reserves
and production will decline over time as reserves are exploited.



Net Asset Value



The net asset value of the assets of the
Company from time to time will vary dependent upon a number of factors beyond the control of management, including crude oil and
natural gas prices. The trading prices of the common shares from time to time is also determined by a number of factors which are
beyond the control of management and such trading prices may be greater than the net asset value of the Company's assets.



Volatility of Market Price of Common Shares



The market price of the common shares may
be volatile. The volatility may affect the ability of Shareholders to sell the common shares at an advantageous price. Market price
fluctuations in the common shares may be due to the Company’s operating results failing to meet the expectations of securities
analysts or investors in any quarter, downward revision in securities analysts’ estimates, governmental regulatory action,
adverse change in general market conditions or economic trends, acquisitions, dispositions or other material public announcements
by the Corporation or its competitors, along with a variety of additional factors, including, without limitation, those set forth
under “Forward-Looking Statements” in this annual information form. In addition, the market price for securities in
the stock markets, including the TSX and NYSE, has experienced significant price and trading fluctuations in recent years. These
fluctuations have resulted in volatility in the market prices of securities that often has been unrelated or disproportionate to
changes in operating performance. These broad market fluctuations may adversely affect the market price of the common shares.



Variations in Interest Rates and Foreign
Exchange Rates



An increase in interest rates could result
in a significant increase in the amount the Company pays to service debt, potentially impacting dividends to Shareholders.



In addition, an increase in the exchange
rate for the Canadian dollar versus the U.S. dollar would result in the receipt by the Company of fewer Canadian dollars for its
production which may affect future dividends. The Company monitors and, when appropriate, uses derivative financial instruments
to manage its exposure to currency exchange rate risks. The increase in the exchange rate for the Canadian dollar and future Canadian/United
States exchange rates may impact future dividends and the future value of the Company's reserves as determined by independent evaluators.



59


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Increase in Operating Costs or Decline
in Production Level



An increase in operating costs or a decline
in Vermilion’s production level could have an adverse effect on Vermilion’s cash flow and, therefore, could reduce
dividends to Shareholders and affect the market price of the common shares. The level of production may decline at rates greater
than anticipated due to unforeseen circumstances, many of which are beyond Vermilion's control. A significant decline in production
could result in materially lower revenues and cash flow and, therefore, could reduce dividends to Shareholders and affect the market
price of the common shares.



Acquisition Assumptions



When making acquisitions, Vermilion estimates
future performance of the assets to be acquired that may prove to be inaccurate.



Acquired assets are subject to inherent
risks associated with predicting the future performance of those assets. Vermilion makes certain estimates and assumptions respecting
the economic potential of the assets it acquires which may not be realized over time. As such, assets acquired may not possess
the value Vermilion attributed to them, which could adversely impact cash flow.



Failure to Realize Anticipated Benefits
of Prior Acquisitions



Vermilion may, from time to time, complete
one or more acquisitions for various strategic reasons including to strengthen its position in the oil and natural gas industry
and to create the opportunity to realize certain benefits, including, among other things, potential cost savings. In order to achieve
the benefits of any future acquisitions, Vermilion will be dependent upon its ability to successfully consolidate functions and
integrate operations, procedures and personnel in a timely and efficient manner and to realize the anticipated growth opportunities
and synergies from combining the acquired assets and operations with those of the Company. The integration of acquired assets and
operations requires the dedication of management effort, time and resources, which may divert management's focus and resources
from other strategic opportunities and from operational matters during the process. The integration process may result in the disruption
of ongoing business and customer relationships that may adversely affect Vermilion's ability to achieve the anticipated benefits
of such prior acquisitions.



Additional Financing



Vermilion’s credit facility and any
replacement credit facility may not provide sufficient liquidity. The amounts available under Vermilion's credit facility may not
be sufficient for future operations, or Vermilion may not be able to obtain additional financing on attractive economic terms,
if at all. Any failure to obtain financing may have a material adverse effect on Vermilion's business, and dividends to Shareholders
may be reduced, suspended or eliminated.



To the extent that external sources of capital,
including the issuance of additional common shares, become limited or unavailable, Vermilion's ability to make the necessary capital
investments to maintain or expand its crude oil and natural gas reserves will be impaired. To the extent the Company is required
to use cash flow to finance capital expenditures or property acquisitions, the level of cash available that may be declared payable
as dividends will be reduced.



Potential Conflicts of Interest



Circumstances may arise where members of
the board of directors or officers of Vermilion are directors or officers of companies which are in competition to the interests
of Vermilion. No assurances can be given that opportunities identified by such persons will be provided to Vermilion.



Accounting Adjustments



The presentation of financial information
in accordance with IFRS requires that management apply certain accounting policies and make certain estimates and assumptions which
affect reported amounts in Vermilion’s consolidated financial statements. The accounting policies may result in non-cash
charges to net income and write-downs of net assets in the consolidated financial statements. Such non-cash charges and write-downs
may be viewed unfavourably by the market and may result in an inability to borrow funds and/or may result in a decline in the common
share price.



Lower crude oil and gas prices increase
the risk of write-downs of Vermilion’s oil and gas property investments. Under IFRS, PNG depletion units are aggregated into
groups known as CGUs for impairment testing.  CGUs are reviewed for indicators that the carrying value of the CGU may exceed
its recoverable amount.  If an indication of impairment exists, the CGU’s recoverable amount is then estimated. 
A CGU’s recoverable amount is defined as the higher of the fair value less costs to sell and its value in use.  If the
carrying amount exceeds its recoverable amount an impairment loss is recorded to net earnings in the period to reduce the carrying
value of the CGU to its recoverable amount. While these impairment losses would not affect cash flow, the charge to net earnings
could be viewed unfavourably in the market.



60


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




Market Accessibility



A decline in Vermilion’s ability to
market crude oil and natural gas production could have a material adverse effect on its production levels or on the price that
Vermilion receives for production which, in turn, could reduce dividends to its Shareholders and the trading price of the common
shares.



Vermilion’s business depends in part
upon the availability, proximity and capacity of natural gas gathering systems, pipelines and processing facilities. Canadian federal
and provincial, as well as United States federal and state, regulation of crude oil and natural gas production, processing
and transportation, tax and energy policies, general economic conditions, and changes in supply and demand could adversely affect
Vermilion’s ability to produce and market crude oil and natural gas. If market factors change and inhibit the marketing of
Vermilion production, overall production or realized prices may decline, which could reduce dividends to Shareholders.



ADDITIONAL INFORMATION



Additional information relating to the Company
may be found on SEDAR at www.sedar.com. Additional information related to the remuneration and indebtedness of the directors
and officers of the Company, and the principal holders of common shares and Rights to purchase common shares and securities authorized
for issuance under the Company's equity compensation plans, where applicable, are contained in the information circular of the
Company in respect of its most recent annual meeting of Shareholders involving the election of directors. Additional financial
information is provided in the Company's audited financial statements and management's discussion and analysis for the year ended
December 31, 2015.



61


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




APPENDIX A

CONTINGENT RESOURCES



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



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



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



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



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



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





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



62


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




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





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



Notes:

| | (1) | The contingent resource assessments were prepared by GLJ in accordance with the definitions, standards
and procedures contained in the COGEH and NI 51-101. Contingent resource is defined in the COGEH as those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology
under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. There
is no certainty that it will be commercially viable to produce any portion of the contingent resources or that Vermilion will produce
any portion of the volumes currently classified as contingent resources. The estimates of contingent resources involve implied
assessment, based on certain estimates and assumptions, that the resources described exists in the quantities predicted or estimated,
as at a given date, and that the resources can be profitably produced in the future. The risked net present value of the future
net revenue from the contingent resources does not necessarily represent the fair market value of the contingent resources. Actual
contingent resources (and any volumes that may be reclassified as reserves) and future production therefrom may be greater than
or less than the estimates provided herein.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | GLJ prepared the estimates of contingent resources shown
for each property using deterministic principles and methods. Probabilistic aggregation of the low and high property estimates
shown in the table might produce different total volumes than the arithmetic sums shown in the table.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | The forecast price and cost assumptions utilized in the
year-end 2015 reserves report were also utilized by GLJ in preparing the contingent resource assessments. See ”GLJ December
31, 2015 Forecast Prices” in Vermilion’s Annual Information Form for the year ended December 31, 2015.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | "Gross” Contingent Resources are Vermilion's working interest (operating or non-operating)
share before deduction of royalties and without including any royalty interests of Vermilion. "Net” Contingent Resources
are Vermilion's working interest (operating or non-operating) share after deduction of royalty obligations, plus Vermilion's royalty
interests in Contingent Resources.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (5) | The risked net present value of future net revenue attributable
to the contingent resources does not necessarily represent the fair market value of the contingent resources. Estimated abandonment
and reclamation costs have been included in the evaluation.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (6) | This is considered to be a conservative estimate of the
quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate.
If probabilistic methods are used, there should be at least a 90 percent probability (P90) that the quantities actually recovered
will equal or exceed the low estimate.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (7) | This is considered to be the best estimate of the quantity
that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than
the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the quantities
actually recovered will equal or exceed the best estimate.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (8) | This is considered to be an optimistic estimate of the
quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate.
If probabilistic methods are used, there should be at least a 10 percent probability (P10) that the quantities actually recovered
will equal or exceed the high estimate.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



63


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




| | (9) | The Chance of Development (CoDev) is the estimated probability
that, once discovered, a known accumulation will be commercially developed. Five factors have been considered in determining the
CoDev as follows:
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | CoDev = Ps (Economic Factor) × Ps
(Technology Factor) × Ps (Development Plan Factor) ×Ps (Development Timeframe Factor) × Ps (Other Contingency
Factor) wherein
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Ps is the probability of success
| | - | --------------------------------

| | · | Economic Factor – For reserves to
be assessed, a project must be economic. With respect to contingent resources, this factor captures uncertainty in the assessment
of economic status principally due to uncertainty in cost estimates and marketing options. Economic viability uncertainty due to
technology is more aptly captured with the Technology Factor. The Economic Factor will be 1 for reserves and will often be 1 for
development pending and for projects with a development study or pre-development study with a robust rate of return. A robust rate
of return means that the project retains economic status with variation in costs and/or marketing plans over the expected range
of outcomes for these variables.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Technology Factor - For reserves to be
assessed, a project must utilize established technology. With respect to contingent resources, this factor captures the uncertainty
in the viability of the proposed technology for the subject reservoir, namely, the uncertainty associated with technology under
development. By definition, technology under development is a recovery process or process improvement that has been determined
to be technically viable via field test and is being field tested further to determine its economic viability in the subject reservoir.
The Technology Factor will be 1 for reserves and for established technology. For technology under development, this factor will
consider different risks associated with technologies being developed at the scale of the well versus the scale of a project and
technologies which are being modified or extended for the subject reservoir versus new emerging technologies which have not previously
been applied in any commercial application. The risk assessment will also consider the quality and sufficiency of the test data
available, the ability to reliably scale such data and the ability to extrapolate results in time.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Development Plan Factor – For reserves
to be assessed, a project must have a detailed development plan. With respect to contingent resources, this factor captures the
uncertainty in the project evaluation scenario. The Development Plan Factor will be 1 for reserves and high, approaching 1, for
development pending projects. This factor will consider development plan detail variations including the degree of delineation,
reservoir specific development and operating strategy detail (technology decision, well layouts (spacing and pad locations), completion
strategy, start-up strategy, water source and disposal, other infrastructure, facility design, marketing plans etc) and the quality
of the cost estimates as provided by the developer.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Development Timeframe Factor – In
the case of major projects, for reserves to be assessed, first major capital spending must be initiated within 5 years of the effective
date. The Development Timeframe Factor will be 1 for reserves and will often be 1 for development pending provided the project
is planned on-stream based on the same criteria used in the assessment of reserves. With respect to contingent resources, the factor
will approach 1 for projects planned on-stream with a timeframe slightly longer than the limiting reserves criteria.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Other Contingency Factor – For reserves
to be assessed, all contingencies must be eliminated. With respect to contingent resources, this factor captures major contingencies,
usually beyond the control of the operator, other than those captured by economic status, technology status, project evaluation
scenario status and the development timeframe. The Other Contingency Factor will be 1 for reserves and for development pending
and less than 1 for on hold. Provided all contingencies have been identified and their resolution is reasonably certain, this factor
would also be 1 for development unclarified.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | These factors may be inter-related (dependent)
and care has been taken to ensure that risks are appropriately accounted.
| | - | ------------------------------------------------------------------------------------------------------------------------



| | (10) | Contingent resources for Australia have been estimated based on the continued drilling in our active
core asset (see “Description of Properties” section of this AIF) using established recovery technologies.  The
estimated cost to bring these Contingent resources on commercial production is $171 MM and the expected timeline is between two
and six years.  The specific contingencies for these resources are Corporate Commitment and Development Timing.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (11) | Contingent resources for Canada have been estimated based on the continued drilling in our active
core assets (see “Description of Properties” section of this AIF) using established recovery technologies.  The
estimated cost to bring these Contingent resources on commercial production is  $1,234 MM and the expected timeline is between
one and 10 years.  The specific contingencies for these resources are Corporate Commitment and Development Timing.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (12) | Contingent resources for France have been estimated based on the continued drilling in our active
core assets (see “Description of Properties” section of this AIF) using established recovery technologies.  The
estimated cost to bring these Contingent resources on commercial production is $542 MM and the expected timeline is between two
and 10 years.  The specific contingencies for these resources are Corporate Commitment and Development Timing.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (13) | Contingent resources for Ireland have been estimated based on the continued drilling in our active
core asset (see “Description of Properties” section of this AIF) using established recovery technologies.  The
estimated cost to bring these Contingent resources on commercial production is $31 MM and the expected timeline is between three
and four years.  The specific contingencies for these resources are Corporate Commitment and Development Timing.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (14) | Contingent resources for Netherlands have been estimated based on the continued drilling in our
active core assets (see “Description of Properties” section of this AIF) using established recovery technologies. 
The estimated cost to bring these Contingent resources on commercial production is $14 MM and the expected timeline is between
two and 10 years.  The specific contingencies for these resources are Corporate Commitment and Development Timing.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (15) | Contingent resources for USA have been estimated based on the continued drilling in our active
core asset (see “Description of Properties” section of this AIF) using established recovery technologies.  The
estimated cost to bring these Contingent resources on commercial production is $278 MM and the expected timeline is between two
and 10 years.  The specific contingencies for these resources are Corporate Commitment and Development Timing.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



64


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




APPENDIX B

REPORT ON RESERVES DATA BY INDEPENDENT
QUALIFIED RESERVES EVALUATOR OR AUDITOR (FORM 51-101F2)



To the Board of Directors of Vermilion Energy Inc. (the "Company"):



| | 1. | We have evaluated the Company’s reserves data as at December 31, 2015. The reserves data
are estimates of proved reserves and probable reserves and related future net revenue as at December 31, 2015, estimated using
forecast prices and costs.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 2. | The reserves data are the responsibility of the Company’s management. Our responsibility
is to express an opinion on the reserves data based on our evaluation.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 3. | We carried out our evaluation in accordance with standards set out in the Canadian Oil and Gas
Evaluation Handbook as amended from time to time (the "COGE Handbook") maintained by the Society of Petroleum Evaluation
Engineers (Calgary Chapter).
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 4. | Those standards require that we plan and perform an evaluation to obtain reasonable assurance as
to whether the reserves data are free of material misstatement. An evaluation also includes assessing whether the reserves data
are in accordance with principles and definitions presented in the COGE Handbook.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 5. | The following table shows the net present value of future net revenue (before deduction of income
taxes) attributed to proved plus probable reserves, estimated using forecast prices and costs and calculated using a discount rate
of 10 percent, included in the reserves data of the Company evaluated for the year ended December 2015, and identifies the respective
portions thereof that we have evaluated and reported on to the Company's board of directors:
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                              |                       | Location
    of Reserves | Net
    Present Value of Future Net Revenue      
|----------------------------- | --------------------- | ------------------------ | -------------------------------------------------
|Independent
    Qualified     | Effective
    Date of | (Country
    or Foreign  | (before
    income taxes, 10% discount rate - M$)
|Reserves
    Evaluator        | Evaluation
    Report | Geographic
    Area)     | Audited                                          
|GLJ
    Petroleum Consultants | December
    31, 2015 | Australia                | -                                                
|GLJ
    Petroleum Consultants | December
    31, 2015 | Canada                   | -                                                
|GLJ
    Petroleum Consultants | December
    31, 2015 | France                   | -                                                
|GLJ
    Petroleum Consultants | December
    31, 2015 | Germany                  | -                                                
|GLJ
    Petroleum Consultants | December
    31, 2015 | Ireland                  | -                                                
|GLJ
    Petroleum Consultants | December
    31, 2015 | Netherlands              | -                                                
|GLJ
    Petroleum Consultants | December
    31, 2015 | USA                      | -                                                
|Total                         |                       |                          | -                                                



| | 6. | In our opinion, the reserves data evaluated by us have, in all material respects, been determined
and are in accordance with the COGE Handbook, consistently applied. We express no opinion on the reserves data that we reviewed
but did not audit or evaluate.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 7. | We have no responsibility to update our reports referred to in paragraph 5 for events and circumstances
occurring after the effective date of our reports.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------



| | 8. | Because the reserves data are based on judgements regarding future events, actual results will
vary and the variations may be material.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------



EXECUTED as to our reports referred to above:



GLJ Petroleum Consultants Ltd., Calgary, Alberta, Canada, February
8, 2016



|“Jodi L. Anhorn”
        Jodi L. Anhorn, M.Sc., P.Eng.
        Executive Vice President & COO |  | 
|--------------------------------------------------------------------------------------------- |  | 



65


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




APPENDIX B - PART 2

REPORT ON CONTINGENT RESOURCES DATA BY
INDEPENDENT QUALIFIED RESERVES EVALUATOR

OR AUDITOR (FORM 51-101F2)



To the
board of directors of Vermilion Energy Inc. (the "Company"):



| | 1. | We have evaluated the Company's contingent resources data as at December 31, 2015. The contingent
resources data are risked estimates of volume of contingent resources and related risked net present value of future net revenue
as at December 31, 2015, estimated using forecast prices and costs.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 2. | The contingent resources data are the responsibility of the Company's management. Our responsibility
is to express an opinion on the contingent resources data based on our evaluation.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 3. | We carried out our evaluation in accordance with standards set out in the Canadian Oil and Gas
Evaluation Handbook as amended from time to time (the "COGE Handbook") maintained by the Society of Petroleum Evaluation
Engineers (Calgary Chapter).
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 4. | Those standards require that we plan and perform an evaluation to obtain reasonable assurance as
to whether the contingent resources data are free of material misstatement. An evaluation also includes assessing whether the contingent
resources data are in accordance with principles and definitions presented in the COGE Handbook.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 5. | The following tables set forth the risked volume and risked net present value of future net revenue
of contingent resources (before deduction of income taxes) attributed to contingent resources, estimated using forecast prices
and costs and calculated using a discount rate of 10 percent, included in the Company's statement prepared in accordance with Form
51-101F1 and identifies the respective portions of the contingent resources data that we have evaluated and reported on to the
Company's board of directors:
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                                                  |                               |                       | Location of          |         | Net Present
    Value of Future Net
|------------------------------------------------- | ----------------------------- | --------------------- | -------------------- | ------- | -----------------------------------
|                                                  |                               |                       | Resources
Other      |         | Revenue
    (before income taxes,  
|                                                  | Independent                   |                       | than Reserves        | Risked  | 10%
    discount rate - M$)        
|                                                  | Qualified Reserves            | Effective Date of     | (Country or Foreign  | Volume  |                                    
|Classification                                    | Evaluator
    or Auditor      | Evaluation
    Report | Geographic
    Area) | (Mboe)  | Audited                            
|Development Pending Contingent Resources
    (2C) | GLJ Petroleum Consultants     | December 31,
    2015 | Australia            | 3,000   | -                                  
|Development Pending Contingent Resources
    (2C) | GLJ Petroleum Consultants     | December 31,
    2015 | Canada               | 110,076 | -                                  
|Development Pending Contingent Resources
    (2C) | GLJ Petroleum Consultants     | December 31,
    2015 | France               | 25,828  | -                                  
|Development Pending Contingent Resources
    (2C) | GLJ Petroleum Consultants     | December 31,
    2015 | Ireland              | 1,143   | -                                  
|Development Pending Contingent Resources
    (2C) | GLJ Petroleum Consultants     | December 31,
    2015 | Netherlands          | 793     | -                                  
|Development
    Pending Contingent Resources (2C) | GLJ
    Petroleum Consultants | December
    31, 2015 | USA                  | 19,834  | -                                  
|Total                                             |                               |                       |                      | 160,674 | -                                  



| | 6. | In our opinion, the contingent resources data respectively evaluated by us have, in all material
respects, been determined and are in accordance with the COGE Handbook, consistently applied. We express no opinion on the contingent
resources data that we reviewed but did not audit or evaluate.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 7. | We have no responsibility to update our reports referred to in paragraph 5 for events and circumstances
occurring after the effective date of our reports.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------



| | 8. | Because the contingent resources data are based on judgements regarding future events, actual results
will vary and the variations may be material.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------



EXECUTED as to our reports referred to above:



GLJ Petroleum Consultants Ltd., Calgary, Alberta, Canada, February
8, 2016



|“Jodi L. Anhorn”
        Jodi L. Anhorn, M.Sc., P.Eng.
        Executive Vice President & COO |  | 
|--------------------------------------------------------------------------------------------- |  | 



66


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




APPENDIX C

REPORT OF MANAGEMENT AND DIRECTORS ON
RESERVES DATA AND OTHER INFORMATION (FORM 51-101F3)



Terms to which a meaning is ascribed
in National Instrument 51-101 have the same meaning herein.



Management of Vermilion Energy Inc. (the
"Company") are responsible for the preparation and disclosure, or arranging for the preparation and disclosure of information
with respect to the Company's oil and gas activities in accordance with securities regulatory requirements. This information includes
reserves data, which are estimates of proved reserves and probable reserves and related future net revenue as at December 31, 2015,
estimated using forecast prices and costs.



Independent qualified reserves evaluators
have evaluated the Company's reserves data. The report of the independent qualified reserves evaluators is presented in Schedule
A to the Annual Information Form of the Company for the year ended December 31, 2015.



The Independent Reserves Committee of the
Board of Directors of the Company has:



| | (a) | reviewed the Company's procedures for providing information to the independent qualified reserves
evaluators;
| | --- | -------------------------------------------------------------------------------------------------------------



| | (b) | met with the independent qualified reserves evaluators to determine whether any restrictions affected
the ability of the independent qualified reserves evaluators to report without reservation; and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (c) | reviewed the reserves data with Management and the independent qualified reserves evaluators.
| | --- | ---------------------------------------------------------------------------------------------



The Independent Reserves Committee of the
Board of Directors has reviewed the Company's procedures for assembling and reporting other information associated with oil and
gas activities and has reviewed that information with Management. The Board of Directors has, on the recommendation of the Audit
and Independent Reserves Committees, approved:



| | (a) | the content and filing with securities regulatory authorities of Form 51-101F1 containing reserves
data and other oil and gas information;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------



| | (b) | the filing of Form 51-101F2 which is the report of the independent qualified reserves evaluators
on the reserves data; and
| | --- | --------------------------------------------------------------------------------------------------------------------------



| | (c) | the content and filing of this report.
| | --- | --------------------------------------



Because the reserves data
are based on judgements regarding future events, actual results will vary and the variations may be material.



|“Anthony Marino”                                                      | 
|--------------------------------------------------------------------- | 
|Anthony Marino, President & Chief Executive Officer                   | 
|                                                                      | 
|“Curtis Hicks”                                                        | 
|Curtis W. Hicks, Executive Vice President and Chief Financial Officer | 
|                                                                      | 
|“Lorenzo Donadeo”                                                     | 
|Lorenzo Donadeo, Director and Chairman of the Board                   | 
|                                                                      | 
|“Claudio A. Ghersinich”                                               | 
|Claudio A. Ghersinich, Director                                       | 



March 4, 2016



67


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




APPENDIX D



TERMS OF REFERENCE FOR THE AUDIT COMMITTEE



| | I. | PURPOSE
| | -- | -------



The primary function of the Audit
Committee (the "Committee") is to assist the Board in fulfilling its oversight responsibilities with respect to the Company’s
accounting and financing reporting processes and the audit of the Company’s financial statements, including oversight of:



| | A. | the integrity of the Company’s financial statements;
| | -- | ----------------------------------------------------



| | B. | the Company’s compliance with legal and regulatory requirements;
| | -- | ----------------------------------------------------------------



| | C. | the independent auditors’ qualifications and independence;
| | -- | ----------------------------------------------------------



| | D. | the financial information that will be provided to the Shareholders and others;
| | -- | -------------------------------------------------------------------------------



| | E. | the Company’s systems of disclosure controls and internal controls regarding finance, accounting,
legal compliance and ethics, which management and the Board have established;
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | F. | the performance of the Company’s audit processes; and
| | -- | -----------------------------------------------------



| | G. | such other matters required by applicable laws and rules of any stock exchange on which the Company’s
shares are listed for trading.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------



While the Committee has the responsibilities
and powers set forth in its terms of reference, it is not the duty of the Committee to prepare financial statements, plan or conduct
audits or to determine that the Company’s financial statements and disclosures are complete and accurate and are in accordance
with International Financial Reporting Standards and applicable rules and regulations. Primary responsibility for the financial
reporting, information systems, risk management, and disclosure controls and internal controls of the Company is vested in management.



| | II. | COMPOSITION AND OPERATIONS
| | --- | --------------------------



| | A. | The Committee shall be composed of not fewer than three directors and not more than five directors,
all of whom are “independent”1 under the requirements or guidelines for audit committee service under
applicable securities laws and rules of any stock exchange on which the Company’s shares are listed for trading.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | B. | All Committee members shall be "financially literate,"2 and at least one
member shall have "accounting or related financial expertise" as such terms are interpreted by the Board in its business
judgment in light of, and in accordance with, the requirements or guidelines for audit committee service under applicable securities
laws and rules of any stock exchange on which the Company’s shares are listed for trading. The Committee may include a member
who is not financially literate, provided he or she attains this status within a reasonable period of time following his or her
appointment and providing the Board has determined that including such member will not materially adversely affect the ability
of the Committee to act independently.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | C. | No Committee member shall serve on the audit committees of more than two other public issuers without
prior determination by the Board that such simultaneous service would not impair the ability of such member to serve effectively
on the Committee.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | D. | The Committee shall operate in a manner that is consistent with the Committee Guidelines outlined
in Tab 8 of the Board Manual.
| | -- | -------------------------------------------------------------------------------------------------------------------------------



| | E. | The Company's auditors shall be advised of the names of the Committee members and will receive
notice of and be invited to attend meetings of the Committee, and to be heard at those meetings on matters relating to the auditor's
duties.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | F. | The Committee may request any officer or employee of the Company, or the Company’s legal
counsel, or any external or internal auditors to attend a meeting of the Committee to provide such pertinent information as the
Committee requests or to meet with any members of, or consultants to the Committee. The Committee has the authority to communicate
directly with the internal and external auditors as it deems appropriate to consider any matter that the Committee or auditors
determine should be brought to the attention of the Board or Shareholders.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | G. | The Committee shall have the authority to select, retain, terminate and approve the fees and other
retention terms of special independent legal counsel and other consultants or advisers to advise the Committee, as it deems necessary
or appropriate, at the Company’s expense.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------








| | 1 | Committee members must be “independent”, as defined in Sections 1.4 and 1.5 of National
Instrument 52-110 and ‘‘independent’’ under the requirements of Rule 10A-3 of the Securities Exchange Act
of 1934, as amended, and Section 303A.06 of the NYSE Listed Company Manual.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2 | The Board has adopted the NI 52-110 definition of "financial literacy", which is
an individual is financially literate if he or she has the ability to read and understand a set of financial statements that present
a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues
that can reasonably be expected to be raised by the issuer's financial statements.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

68


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




APPENDIX D

TERMS OF REFERENCE FOR THE AUDIT COMMITTEE
(CONTINUED)

| | H. | The Company shall provide for appropriate funding, as determined by the Committee, for payment
of (i) compensation to the independent auditors engaged for the purpose of preparing or issuing an audit report or performing other
audit review or attest services for the Company, (ii) compensation to any advisers employed by the Committee and (iii) ordinary
administrative expenses of the Committee that are necessary or appropriate for carrying out its duties.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | I. | The Committee shall meet at least four times each year.
| | -- | -------------------------------------------------------



| | III. | DUTIES AND RESPONSIBILITIES
| | ---- | ---------------------------



Subject to the powers and duties
of the Board, the Committee will perform the following duties:



| | A. | Financial Statements and Other Financial Information
| | -- | ----------------------------------------------------



The Committee will review and recommend
for approval to the Board financial information that will be made publicly available. This includes the responsibility to:



| | i) | review and recommend approval of the Company's annual financial statements, MD&A and earnings
press release and report to the Board of Directors before the statements are approved by the Board of Directors;
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ii) | review and recommend approval for release the Company's quarterly financial statements, MD&A
and press releases, as well as financial information and earnings guidance provided to analysts and rating agencies;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | iii) | satisfy itself that adequate procedures are in place for the review of the public disclosure of
financial information extracted or derived from the Company's financial statements, other than the public disclosure referred to
in items (i) and (ii) above, and periodically assess the adequacy of those procedures; and
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | iv) | review the Annual Information Form and any Prospectus/Private Placement Memorandums.
| | --- | ------------------------------------------------------------------------------------



Review, and where appropriate, discuss:



| | v) | the appropriateness of critical accounting policies and financial reporting practices used by the
Company;
| | -- | ----------------------------------------------------------------------------------------------------------

| | vi) | major issues regarding accounting principles and financial statement presentations, including any
significant proposed changes in financial reporting and accounting principles, policies and practices to be adopted by the Company
and major issues as to the adequacy of the Company’s internal controls and any special audit steps adopted in light of material
control deficiencies;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | vii) | analyses prepared by management or the external auditor setting forth significant financial reporting
issues and judgments made in connection with the preparation of the financial statements, including analyses of the effects of
alternative International Financial Reporting Standards (“IFRS”) methods on the financial statements of the Company
and any other opinions sought by management from an independent or other audit firm or advisor with respect to the accounting treatment
of a particular item;
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | viii) | any management letter or schedule of unadjusted differences provided by the external auditor and
the Company’s response to that letter and other material written communication between the external auditor and management;
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ix) | any problems, difficulties or differences encountered in the course of the audit work including
any disagreements with management or restrictions on the scope of the external auditor’s activities or on access to requested
information and management’s response thereto;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | x) | any new or pending developments in accounting and reporting standards that may affect the Company;
| | -- | --------------------------------------------------------------------------------------------------

| | xi) | the effect of regulatory and accounting initiatives, as well as any off-balance sheet structures
on the financial statements of the Company and other financial disclosures;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | xii) | any reserves, accruals, provisions or estimates that may have a significant effect upon the financial
statements of the Company;
| | ---- | --------------------------------------------------------------------------------------------------------------------------------

| | xiii) | the use of special purpose entities and the business purpose and economic effect of off balance
sheet transactions, arrangements, obligations, guarantees and other relationships of Company and their impact on the reported financial
results of the Company;
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | xiv) | the use of any “pro forma” or “adjusted” information not in accordance
with generally accepted accounting principles;
| | ---- | ---------------------------------------------------------------------------------------------------------------------

| | xv) | any litigation, claim or contingency, including tax assessments, that could have a material effect
upon the financial position of the Company, and the manner in which these matters may be, or have been, disclosed in the financial
statements; and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | xvi) | accounting, tax and financial aspects of the operations of the Company as the Committee considers
appropriate.
| | ---- | --------------------------------------------------------------------------------------------------------------





69


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015




APPENDIX D
TERMS OF REFERENCE FOR THE AUDIT COMMITTEE (CONTINUED)



| | B. | Risk Management, Internal Control and Information Systems
| | -- | ---------------------------------------------------------



The Committee will review and discuss
with management, and obtain reasonable assurance that the risk management, internal control and information systems are operating
effectively to produce accurate, appropriate and timely management and financial information. This includes the responsibility
to:



| | i) | review the Company's risk management controls and policies with specific responsibility for Credit
& Counterparty, Market & Financial, Political and Strategic & Repatriation risks;
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ii) | obtain reasonable assurance that the information systems are reliable and the systems of internal
controls are properly designed and effectively implemented through separate and periodic discussions with and reports from management,
the internal auditor and external auditor; and
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | iii) | review management steps to implement and maintain appropriate internal control procedures including
a review of policies.
| | ---- | -------------------------------------------------------------------------------------------------------------------------



| | C. | External Audit
| | -- | --------------



The external auditor is required
to report directly to the Committee, which will review the planning and results of external audit activities and the ongoing relationship
with the external auditor. This includes:



| | i) | review and recommend to the Board, for Shareholder approval, the appointment of the external auditor;
| | -- | -----------------------------------------------------------------------------------------------------

| | ii) | review and approve the annual external audit plan, including but not limited to the following:
| | --- | ----------------------------------------------------------------------------------------------

| | a) | engagement letter between the external auditor and financial management of the Company;
| | -- | ---------------------------------------------------------------------------------------

| | b) | objectives and scope of the external audit work;
| | -- | ------------------------------------------------

| | c) | procedures for quarterly review of financial statements;
| | -- | --------------------------------------------------------

| | d) | materiality limit;
| | -- | ------------------

| | e) | areas of audit risk;
| | -- | --------------------

| | f) | staffing;
| | -- | ---------

| | g) | timetable; and
| | -- | --------------

| | h) | compensation and fees to be paid by the Company to the external auditor.
| | -- | ------------------------------------------------------------------------

| | iii) | meet with the external auditor to discuss the Company's quarterly and annual financial statements
and the auditor's report including the appropriateness of accounting policies and underlying estimates;
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | iv) | maintain oversight of the external auditor's work and advise the Board, including but not limited
to:
| | --- | -----------------------------------------------------------------------------------------------------

| | a) | the resolution of any disagreements between management and the external auditor regarding financial
reporting;
| | -- | --------------------------------------------------------------------------------------------------------------

| | b) | any significant accounting or financial reporting issue;
| | -- | --------------------------------------------------------

| | c) | the auditors' evaluation of the Company's system of internal controls, procedures and documentation;
| | -- | ----------------------------------------------------------------------------------------------------

| | d) | the post audit or management letter containing any findings or recommendation of the external auditor,
including management's response thereto and the subsequent follow-up to any identified internal control weaknesses;
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | e) | any other matters the external auditor brings to the Committee's attention; and
| | -- | -------------------------------------------------------------------------------

| | f) | evaluate and assess the qualifications and performance of the external auditors for recommendation
to the Board as to the appointment or reappointment of the external auditor to be proposed for approval by the Shareholders, and
ensuring that such auditors are participants in good standing pursuant to applicable regulatory laws.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | v) | review the auditor's report on all material subsidiaries;
| | -- | ---------------------------------------------------------

| | vi) | review and discuss with the external auditors all significant relationships that the external auditors
and their affiliates have with the Company and its affiliates in order to determine the external auditors' independence, including,
without limitation:
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | a) | requesting, receiving and reviewing, on a periodic basis, a formal written statement from the external
auditors, including a list of all relationships between the external auditor and the Company that may reasonably be thought to
bear on the independence of the external auditors with respect to the Company;
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b) | discussing with the external auditors any disclosed relationships or services that the external
auditors believe may affect the objectivity and independence of the external auditors; and
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | c) | recommending that the Board take appropriate action in response to the external auditors' report
to satisfy itself of the external auditors' independence.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------

| | vii) | annually request and review a report from the external auditor regarding (a) the external auditor’s
quality-control procedures, (b) any material issues raised by the most recent quality-control review, or peer review, of the external
auditor, or by any inquiry or investigation by governmental or professional authorities within the preceding five years respecting
one or more independent audits carried out by the firm, and (c) any steps taken to deal with any such issues;
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | viii) | review and pre-approve any non-audit services to be provided to the Company or any affiliates by
the external auditor's firm or its affiliates (including estimated fees), and consider the impact on the independence of the external
audit;
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ix) | review the disclosure with respect to its pre-approval of audit and non-audit services provided
by the external auditors; and
| | --- | -----------------------------------------------------------------------------------------------------------------------------

| | x) | meet periodically, and at least annually, with the external auditor without management present.
| | -- | -----------------------------------------------------------------------------------------------





70


Vermilion EnergyExhibit 99.1 - AIF for the year ended December 31, 2015






APPENDIX D

TERMS OF REFERENCE FOR THE AUDIT COMMITTEE
(CONTINUED)



| | D. | Compliance
| | -- | ----------



The Committee shall:

| | i) | Ensure that the external auditor's fees are disclosed by category in the Annual Information Form
in compliance with regulatory requirements;
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------

| | ii) | Disclose any specific policies or procedures adopted for pre-approving non-audit services by the
external auditor including affirmation that they meet regulatory requirements;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | iii) | Assist the Governance and Human Resources Committee with preparing the Company's governance disclosure
by ensuring it has current and accurate information on:
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

| | a) | the independence of each Committee member relative to regulatory requirements for audit committees;
| | -- | ---------------------------------------------------------------------------------------------------

| | b) | the state of financial literacy of each Committee member, including the name of any member(s) currently
in the process of acquiring financial literacy and when they are expected to attain this status; and
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | c) | the education and experience of each Committee member relevant to his or her responsibilities as
Committee member.
| | -- | ------------------------------------------------------------------------------------------------------------------

| | iv) | Disclose, if required, if the Company has relied upon any exemptions to the requirements for committees
under applicable securities laws and rules of any stock exchange on which the Company’s shares are listed for trading.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | E. | Other
| | -- | -----



The Committee shall:



| | i) | establish and periodically review procedures for:
| | -- | -------------------------------------------------

| | a) | the receipt, retention and treatment of complaints received by the Company regarding accounting,
internal accounting controls, or auditing matters; and
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | b) | the confidential, anonymous submission by employees of concerns regarding questionable accounting
or auditing matters or other matters that could negatively affect the Company, such as violations of the Code of Business Conduct
and Ethics.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ii) | review and approve the Company's hiring policies regarding partners, employees and former partners
and employees of the present and former external auditor;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

| | iii) | review insurance coverage of significant business risks and uncertainties;
| | ---- | --------------------------------------------------------------------------

| | iv) | review material litigation and its impact on financial reporting;
| | --- | -----------------------------------------------------------------

| | v) | review policies and procedures for the review and approval of officers' expenses and perquisites;
| | -- | -------------------------------------------------------------------------------------------------

| | vi) | review the policies and practices concerning the expenses and perquisites of the Chairman, including
the use of the assets of the Company;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------

| | vii) | review with external auditors any corporate transactions in which directors or officers of the
Company have a personal interest; and
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------

| | viii) | review the terms of reference for the Committee at least annually and otherwise as it deems appropriate,
and recommend changes to the Board as required. The Committee shall evaluate its performance with reference to the terms of reference
annually.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | IV. | ACCOUNTABILITY
| | --- | --------------



| | D. | The Committee Chair has the responsibility to make periodic reports to the Board, as requested,
on financial and other matters considered by the Committee relative to the Company.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | E. | The Committee shall report its discussions to the Board by maintaining minutes of its meetings
and providing an oral report at the next Board meeting.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------



71