UNITED
STATES
 SECURITIES
AND EXCHANGE COMMISSION - WASHINGTON, D.C. 20549
  Form
40-F
   ̈
              Registration
      statement pursuant to Section 12 of the Securities Exchange Act of 1934;
      orþ
              Annual
      report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act
      of 1934
 
 For
fiscal year ended: December 31, 2007
 Commission
file number: No. 0-50832
  Vermilion
Energy Trust
 
 (Exact
name of registrant as specified in its charter)
  Alberta
 
 (Province
or other jurisdiction of incorporation or organization)
  1311
 
 (Primary
standard industrial classification code number)
  N/A
 
 (I.R.S.
employer identification number)
  2800,
400 – 4th Avenue S.W.
 Calgary,
Alberta  T2P 0J4 Canada
 (403)
269-4884
 
 (Address
and telephone number of registrant's principal executive office)
  National
Corporate Research, Ltd.
 225
West 34th Street, Suite 910
 New
York, New York 10122 U.S.A.
 (212)
947-7200
 
 (Name,
address and telephone number of agent for service in the United
States)
 
 Securities
registered pursuant to Section 12(b) of the Act:
 Title
      of each class:  N/A
              Name
      of each exchange on which registered:  N/A
 
 Securities
registered or to be registered pursuant to Section 12(g) of the
Act:  Trust
Units
 
 Securities
for which there is a reporting obligation pursuant to Section 15(d) of the Act:
Not
Applicable
 
 For
annual reports, indicate by check mark the information filed with this
form:
 
 þ Annual Information
      Form
              þ Audited Annual Financial
      Statements
 
 Indicate
the number of outstanding shares of each of the issuer's classes of capital or
common stock as of the close of the period covered by the annual
report:  74,271,031
Trust Units (including exchangeable shares)
 
 Indicate
by check mark whether the registrant by filing the information contained in this
form is also thereby furnishing the information to the Commission pursuant to
Rule 12g3-2(b) under the Securities Exchange Act of 1934
(the  "Exchange Act"). If "Yes" is marked, indicate the file number
assigned to the registrant in connection with such rule.
 
  ̈  Yes
              
              þ No
 
 Indicate
by check mark whether the registrant: (1) has filed all reports required to be
filed by Section 13(d) or 15(d) of the Exchange Act during the proceeding 12
months (or for such shorter period that the registrant has been required to file
such reports); and (2) has been subject to such filing requirements in the past
90 days.
 
 þ Yes
              
               ̈
  No













DISCLOSURE
CONTROLS AND PROCEDURES





A.
Evaluation of Disclosure Controls and Procedures





Vermilion
Energy Trust (the "Registrant") maintains disclosure controls and procedures and
internal control over financial reporting designed to ensure that information
required to be disclosed in the Registrant's filings under the Securities
Exchange Act of 1934, as amended (the "Exchange Act") is recorded, processed,
summarized and reported within the time period specified in the rules and forms
of the Securities and Exchange Commission (the "SEC").  Disclosure controls and procedures
include, without limitation, controls and procedures designed to ensure that
information required to be disclosed by an issuer in the reports that it files
or submits under the Exchange Act is accumulated and communicated to the
issuer's management, including its principal executive and principal financial
officers, or persons performing similar functions, as appropriate to allow
timely decisions regarding required disclosure.The Registrant's
Chief Executive Officer and Chief Financial Officer, after having evaluated the
effectiveness of the Registrant's disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14(e) and 15d-14(e)) as of the end of the period
covered by this report have concluded that, as of such date, the Registrant's
disclosure controls and procedures are effective to ensure
that  information relating to the Registrant and its consolidated
subsidiaries would be made known to them by others within those entities.
However, as recommended by the SEC in its adopting release, the Registrant will
continue to periodically evaluate its disclosure controls and procedures and
will make modifications from time to time as deemed necessary to ensure that
information is recorded, processed, summarized and reported within the time
period's specified in the SEC's rules and forms.





B.
Changes in Internal Control Over Financial Reporting




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




There
was no change in the Registrant's internal control over financial reporting that
occurred during the period covered by this report that has materially affected,
or is reasonably likely to materially affect, its internal control over
financial reporting.





C.  Management’s Annual
Report on Internal Controls.





See
page 2 of the 2007 Audited Financial Statements included as Exhibit 99.3 to this
report.





D.
            Auditor
      Attestation





See
page 3 of the 2007 Audited Financial Statements included as Exhibit 99.3 to this
report.





AUDIT
COMMITTEE FINANCIAL EXPERT





The
Registrant's Board of Directors has determined that it has at least one audit
committee financial expert (as such term is defined in the rules andregulations of the SEC)
serving on its Audit Committee. Joseph F. Killihas been determined to
be such audit committee financial expert and is independent (as such term is
defined by the New York Stock Exchange's corporate governance
standards).









The SEC
has indicated that the designation of Joseph F. Killias an audit committee
financial expert does not make him an "expert" for any purpose, impose on him
any duties, obligations or liability that are greater than the duties,
obligations or liability imposed on him as a member of the Audit Committee and
the Board of Directors in absence of such designation, or affect the duties,
obligations or liability of any other member of the Audit Committee or Board of Directors.





CODE
OF ETHICS





The
Registrant has adopted a written “code of ethics” (as that term is defined in
Form 40-F) that applies to its principal executive officer, principal financial
officer, principal accounting officer or controller, and persons performing
similar functions (together, the “Financial Supervisors”).  A copy of
such code of ethics is available upon request or on the Trust’s website at
www.vermilionenergy.com.





PRINCIPAL
ACCOUNTANT FEES AND SERVICES





See
page 34 of the year ended December 31, 2007 Annual Information Form included as
Exhibit 99.1 to this report.





AUDIT
COMMITTEE'S PRE-APPROVAL POLICIES AND PROCEDURES





The
audit committee pre-approves all audit related fees.  The auditors
present the estimate for the annual audit related services to the Committee for
approval prior to undertaking the annual audit of the financial
statements.





AUDIT
COMMITTEE APPROVAL OF NON-AUDIT SERVICES





All
non-audit fees were pre-approved by the Registrant’s audit committee and none
were approved on the basis of the de minimis exemption set forth in Rule
2-01(c)(7)(i)(C) of Regulation S-X .





NOTICES
RELATING TO PENSION FUND BLACKOUT PERIODS





None





OFF-BALANCE
SHEET ARRANGEMENTS





The Trust has
certain lease agreements that are entered into in the normal course of
operations. All leases are operating leases and accordingly no asset or
liability value has been assigned in the balance sheet as of December 31,
2007.
  The Trust uses a
variety of options including funded and costless collars and puts to manage the
risk associated with fluctuating commodity prices on the sale of crude oil and
natural gas. The Trust does not obtain collateral or other security to support
its financial derivatives as the majority of these instruments are with the
Trust’s banking syndicate.
  The Trust has not
entered into any guarantee or off balance sheet arrangements that would
adversely impact the Trust’s financial position or results of
operations.


TABULAR
DISCLOSURE OF CONTRACTUAL OBLIGATIONS





Payments
due by period (Cdn $000’s)





Total
            
            
            Less
      than 1 year
            
            
            1-3
      years
            
            
            4-5
      years
            
            
            More
      than 5 yearsLong-term
      debt obligations
            
            
            452,490
            
            
            
            -
            
            
            
            452,490
            
            
            
            -
            
            
            
            -Total
            
            
            452,490
            
            
            
            -
            
            
            
            452,490
            
            
            
            -
            
            
            
            -





IDENTIFICATION
OF THE AUDIT COMMITTEE





See
page 34 of the year ended December 31, 2007 Annual Information Form included as
Exhibit 99.1 to this report.




UNDERTAKING
AND CONSENT TO SERVICE OF PROCESS





A.  Undertaking





The
Registrant undertakes to make available, in person or by telephone,
representatives to respond to inquiries made by the staff of the SEC, and to
furnish promptly, when requested to do so by the SEC staff, information relating
to the securities in relation to which the obligation to file an annual report
on Form 40-F arises or transactions in said securities.





B.  Consent
to Service of Process





The
Registrant has previously filed with the SEC a Form F-X in connection with the
class of securities in relation to which the obligation to file this report
arises.





SIGNATURES





Pursuant
to the requirements of the Exchange Act, the Registrant certifies that it meets
all of the requirements for filing on Form 40-F and has duly caused this annual
report to be signed on its behalf by the undersigned, thereto duly
authorized.





VERMILION
      ENERGY TRUST (the Registrant)Date:
      March 17, 2008
            By:
            (“Curtis
      Hicks”)Curtis
      W. HicksExecutive
      Vice President and Chief Financial
Officer







EXHIBIT
INDEX
 
 Exhibits
              
              Description99.1
              
              Annual
      Information Form for the Year Ended December 31, 200799.2
              
              Management's
      Discussion and Analysis from the 2007 Annual Report to
      Shareholders99.3
              
              Audited
      Annual Financial Statements for the Year Ended December 31,
      200799.4
              
              Consent
      Letter from Independent
      Registered Chartered Accountants99.5
              
              Consent
      of Independent Engineers GLJ Petroleum Consultants Ltd.99.6
              
              Officers'
      Certifications Required by Rule 13a-14(a) or Rule
  15d-14(a)99.7
              
              Officers'
      Certifications Required by Rule 13a-14(b) or Rule 15d-14(b) and Section
      1350 of Chapter 63 of Title 18 of the United States
  Code