EXHIBIT
99.1


































ANNUAL
INFORMATION FORM





FOR
THE YEAR ENDED





DECEMBER
31, 2007

























March
17, 2008










TABLE OF CONTENTS





GLOSSARY OF
      TERMS
            
            
            1Conventions
            
            
            4Abbreviations
            
            
            4Conversion
            
            
            4SPECIAL NOTE REGARDING FORWARD
      LOOKING STATEMENTS
            
            
            5PRESENTATION OF OIL AND GAS
      RESERVES AND PRODUCTION INFORMATION
            
            
            6NON-GAAP
      MEASURES
            
            
            6VERMILION ENERGY
      TRUST
            
            
            7General
            
            
            7Organizational
      Structure of the Trust
            
            
            7Summary
      Description of the Business
            
            
            8History of
      Vermilion
            
            
            9NARRATIVE DESCRIPTION OF THE
      BUSINESS
            
            
            10Stated Business
      Objectives
            
            
            10Description of
      Properties
            
            
            10STATEMENT OF RESERVES DATA AND
      OTHER OIL AND GAS INFORMATION
            
            
            11Reserves and
      Future Net Revenue
            
            
            11Reconciliations
      of Changes in Reserves and Future Net Revenue
            
            
            14Undeveloped
      Reserves
            
            
            15Timing of
      Initial Undeveloped Reserves Assignment
            
            
            16Future
      Development Costs
            
            
            16Oil and Gas
      Properties and Wells
            
            
            17Costs
      Incurred
            
            
            17Exploration and
      Development Activities
            
            
            18Properties with
      No Attributed Reserves
            
            
            19Abandonment and
      Reclamation Costs
            
            
            19Tax
      Horizon
            
            
            20Production
      Estimates
            
            
            21Production
      History
            
            
            21Marketing
            
            
            23ADDITIONAL INFORMATION RESPECTING
      VERMILION ENERGY TRUST
            
            
            24Trust
      Units
            
            
            24Special Voting
      Rights
            
            
            24Unitholders'
      Limited Liability
            
            
            24Issuance of
      Trust Units
            
            
            25Cash
      Distributions
            
            
            25Redemption
      Right
            
            
            25Non-Resident
      Unitholders
            
            
            26Meetings of
      Unitholders
            
            
            26Trustee
            
            
            26Delegation of
      Authority, Administration and Trust Governance
            
            
            27Amendments to
      the Trust Indenture
            
            
            27Takeover
      Bid
            
            
            27Termination of
      the Trust
            
            
            27Reporting to
      Unitholders
            
            
            28Distribution
      Reinvestment Plan
            
            
            28Unitholder
      Rights Plan
            
            
            28ADDITIONAL INFORMATION RESPECTING
      VERMILION RESOURCES LTD
            
            
            32Management of
      Vermilion
            
            
            32











- ii -





TABLE
OF CONTENTS (Continued)





AUDIT COMMITTEE
      MATTERS
            
            
            34Audit Committee
      Charter
            
            
            34Composition of
      the Audit Committee
            
            
            34External Audit
      Service Fees
            
            
            35Vermilion Share
      Capital
            
            
            35Voting and
      Exchange Trust Agreement
            
            
            39Support
      Agreement
            
            
            40Notes
            
            
            41Royalty
      Agreement
            
            
            42MARKET FOR PRICE RANGE AND TRADING
      VOLUME OF SECURITIES
            
            
            42CONFLICTS OF
      INTEREST
            
            
            43INTEREST OF MANAGEMENT AND OTHERS
      IN MATERIAL TRANSACTIONS
            
            
            43LEGAL
      PROCEEDINGS
            
            
            43MATERIAL
      CONTRACTS
            
            
            43INTERESTS OF
      EXPERTS
            
            
            43TRANSFER AGENT AND
      REGISTRAR
            
            
            43RISK
FACTORS
            
            
            43Reserve
      Estimates
            
            
            43Volatility of
      Oil and Natural Gas Prices
            
            
            43Changes in
      Legislation
            
            
            44Competition
            
            
            44Operational
      Matters
            
            
            44Environmental
      Concerns
            
            
            44Kyoto
      Protocol
            
            
            45Debt
      Service
            
            
            45Delay in Cash
      Distributions
            
            
            45Taxation..
            
            
            45Changes in
      Income Tax Laws
            
            
            46Depletion of
      Reserves
            
            
            46Net Asset
      Value
            
            
            46Return of
      Capital
            
            
            46Nature of Trust
      Units
            
            
            46Unitholders
      Limited Liability
            
            
            46Statutory
      Remedies
            
            
            47Variations in
      Interest Rates and Foreign Exchange Rates
            
            
            47Mutual Fund
      Trust Status
            
            
            47Increase in
      Operating Costs or Decline in Production Level
            
            
            47Acquisition
      Assumptions
            
            
            47Additional
      Financing
            
            
            48Potential
      Conflicts of Interest
            
            
            48GAAP
      Adjustments
            
            
            48Market
      Accessibility
            
            
            48ADDITIONAL
      INFORMATION
            
            
            48








SCHEDULE
"A"
            REPORT ON RESERVES DATA BY
      INDEPENDENT QUALIFIED RESERVES EVALUATOR OR AUDITOR (FORM
      51-101F2)
            
            
            49SCHEDULE
"B"
            REPORT OF MANAGEMENT AND DIRECTORS
      ON OILAND GAS DISCLOSURE (FORM
      51-101F3)
            
            
            50SCHEDULE
"C"
            AUDIT COMMITTEE TERMS OF
      REFERENCE
            
            
            51














- iii -





GLOSSARY
OF TERMS





The
following are defined terms used in this Annual Information Form:





"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;





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





"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;





"board of directors" or "board" means the board of
directors of Vermilion;





"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;





"Current Market Price of a Trust
Unit" means, in respect of a Trust Unit on any date, the weighted average
trading price of the Trust Units on the TSX on that date and the nine trading
days preceding that date, or, if the Trust Units are not then listed on the TSX,
on such other stock exchange or automated quotation system on which the Trust
Units are listed or quoted, as the case may be, as may be selected by the board
of directors of Vermilion for such purpose; provided, however, that if in the
opinion of the board of directors of Vermilion the public distribution or
trading activity of Trust Units for that period does not result in a weighted
average trading price which reflects the fair market value of a Trust Unit, then
the Current Market Price of a Trust Unit shall be determined by the board of
directors of Vermilion, in good faith and in its sole discretion, and provided
further that any such selection, opinion or determination by such board of
directors shall be conclusive and binding and for the purposes of this
definition, the weighted average trading price shall be determined by dividing
(a) the aggregate dollar trading value of all Trust Units sold on the TSX
(or other stock exchange or automated quotation system, if applicable) over the
applicable ten trading days by (b) the total number of Trust Units sold on
such stock exchange or system during such period;





"Distributable Cash" means all
amounts available for distribution during any applicable period to holders of
Trust Units;





"Distribution" means a
distribution paid by the Trust in respect of the Trust Units, expressed as an
amount per Trust Unit;





"Distribution Payment Date"means any date that Distributable Cash is distributed to Unitholders,
generally being the 15th day of the calendar month following any Distribution
Record Date;





"Distribution Record Date"
means the last day of each calendar month or such other date as may be
determined from time to time by the Trustee, except that December 31 shall in
all cases be a Distribution Record Date;





"DRIP Plan" means the
Distribution Reinvestment Plan adopted by the Trust;





"Exchangeable Shares" means the
Series A exchangeable shares in the capital of Vermilion;





"Exchangeable Share Provisions"
means the rights, privileges, restrictions and conditions attaching to the
Exchangeable Shares;






2007
      Annual Information Form – Vermilion Energy Trust
              1











"Exchange Ratio" means the
exchange ratio used to determine the number of Trust Units a holder of
Exchangeable Shares is entitled to receive upon an exchange of Exchangeable
Shares which, in respect of each Exchangeable Share, was initially equal to one
upon completion of the Arrangement, and shall be cumulatively adjusted
thereafter by: (a) increasing the Exchange Ratio on each Distribution
Payment Date by an amount, rounded to the nearest five (5) decimal places,
equal to a fraction having as its numerator the product of the Exchange Ratio
immediately prior to the applicable Distribution Payment Date and the
Distribution, expressed as an amount per Trust Unit, paid on that Distribution
Payment Date, and having as its denominator the Current Market Price of a Trust
Unit on the last business day prior to that Distribution Payment Date; and
(b) decreasing the Exchange Ratio on each record date for the payment of
dividends to holders of Exchangeable Shares by Vermilion, if any, by an amount,
rounded to the nearest five (5) decimal places, equal to a fraction having as
its numerator the amount of the dividend payable to holders of Exchangeable
Shares, expressed as an amount per Exchangeable Share, and having as its
denominator the Current Market Price of a Trust Unit on the date that is the
last business day prior to that dividend record date.  The Exchange
Ratio shall also be adjusted in the event of certain other reorganizations or
distributions in respect of the Trust Units as necessary on an economic
equivalency basis as further described in the Exchangeable Share
Provisions;





“GAAP” means Canadian
Generally Accepted Accounting Principles;





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





"GLJ Report" means the
independent engineering evaluation of certain oil, NGL and natural gas interests
of the Trust prepared by GLJ dated February 13, 2008 and effective December 31,
2007;





"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;





"Insolvency Event" means the
institution, by Vermilion, of any proceeding to be adjudicated to be a bankrupt
or insolvent or to be wound up, or the consent of Vermilion to the institution
of bankruptcy, dissolution, insolvency or winding-up proceedings against it, or
the filing of a petition, answer or consent seeking dissolution or winding-up
under any bankruptcy, insolvency or analogous laws, including without limitation
the Companies
Creditors' Arrangement
Act(Canada) and the Bankruptcy and Insolvency Act(Canada), and the failure by Vermilion to contest in good faith any such
proceedings commenced in respect of Vermilion within fifteen (15) days of
becoming aware thereof, or the consent by Vermilion to the filing of any such
petition or to the appointment of a receiver, or the making by Vermilion of a
general assignment for the benefit of creditors, or the admission in writing by
Vermilion of its inability to pay its debts generally as they become due, or
Vermilion not being permitted, pursuant to solvency requirements of applicable
law, to redeem any retracted Exchangeable Shares pursuant to the Exchangeable
Share Provisions;





"Meeting" means the annual and
special meeting of Unitholders of the Trust to be held on May 2, 2008 (or, if
adjourned, such other date on which the meeting is held);





"Non-Resident" means (a) a
person who is not a resident of Canada for the purposes of the Tax Act; or
(b) a partnership that is not a Canadian partnership for the purposes of
the Tax Act;





"Notes" means the unsecured,
subordinated notes issued by Vermilion under the Arrangement;





"Partnership" means Vermilion
Resources, the partners of which are Vermilion and its wholly-owned subsidiary
1209963 Alberta Ltd.;





"Permitted Investments" means
(a) obligations issued or guaranteed by the government of Canada or any
province of Canada or any agency or instrumentality thereof, (b) term
deposits, guaranteed investment certificates, certificates of deposit or
bankers' acceptances of or guaranteed by any Canadian chartered bank or other
financial institutions the short-term debt or deposits of which have been rated
at least A or the equivalent by Standard & Poor's Corporation, Moody's
Investors Service, Inc. or DBRS Limited, and (c) commercial paper rated at
least A or the equivalentby DBRS Limited, in
each case maturing within 180 days after the date of acquisition;





"Pro Rata Share" of any
particular amount in respect of a Unitholder at any time shall be the product
obtained by multiplying the number of Trust Units that are owned by that
Unitholder at that time by the quotient obtained when such a number is divided
by the total number of all Trust Units that are issued and outstanding at that
time;





2007
      Annual Information Form – Vermilion Energy Trust
                2








"Royalty" means the royalty
granted under the Royalty Agreement commencing February 1, 2003, entitling
the Trust to approximately 99% of the net cash flow generated from the present
and future oil and natural gas interests, rights and related tangibles of the
Partnership after certain costs, expenditures and deductions;





"Royalty Agreement" means the
amended royalty agreement between the Partnership, Vermilion, 1209963 Alberta
Ltd. and the Trust dated January 22, 2003 providing for the creation of the
Royalty;





"Special Resolution" means a
resolution proposed to be passed as a special resolution at a meeting of
Unitholders and passed by the affirmative votes of the holders of not less than
66 2/3% of the Trust Units represented at the meeting and voted on a poll upon
such resolution;





"Special Voting Right" means
the special voting right of the Trust, issued and certified under the Trust
Indenture for the time being outstanding and entitled to the benefits and
subject to the limitations set forth therein;





"Subsequent Investment" means
those investments which the Trust is permitted to make pursuant to the Trust
Indenture;





"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 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;





"Support Agreement" means the
support agreement entered into between the Trust and Vermilion Acquisition Ltd.
(prior to its amalgamation with Vermilion) on January 16,
2003;





"Trust" means Vermilion Energy
Trust, a trust established under the laws of Alberta pursuant to the Trust
Indenture;





"Trustee" means Computershare
Trust Company of Canada, the initial trustee of the Trust, or such other
trustee, from time to time, of the Trust;





"Trust Indenture" means the amended
and restated trust indenture dated as of January 15, 2003 between
Computershare Trust Company of Canada and Vermilion;





"Trust Subsidiary" means
Vermilion Resources Ltd., 1209963 Alberta Ltd., 1209974 Alberta Ltd., Vermilion
Rep S.A.S., Vermilion Resources (Partnership), Vermilion Oil & Gas
Netherlands B.V. and Vermilion Oil & Gas Australia Pty Ltd.;





"Trust Unit" or "Unit" means a unit of the
Trust issued by the Trust;





"Trust Unit Award Plan" means the
Trust Unit Award Incentive Plan of the Trust;





"TSX" means TSX Inc., carrying
on business as the Toronto Stock Exchange;





"Unitholder Rights Plan
Agreement" means the Unitholder Rights Plan Agreement dated May 5, 2006
between the Trust and Computershare Trust Company of Canada establishing the
Unitholder Rights Plan of the Trust;





"Unitholders" means holders
from time to time of the Trust Units;





"Unit Rights Incentive Plan"
means the Unit Rights Incentive Plan of the Trust;





"Verenex" means Verenex Energy
Inc., a publicly traded oil and natural gas exploration and production
company;





"Vermilion" means Vermilion
Resources Ltd.;





"Voting and Exchange Agreement
Trustee" means Computershare Trust Company of Canada, the initial trustee
under the Voting and Exchange Trust Agreement, or such other trustee, from time
to time appointed thereunder; and





"Voting and Exchange Trust
Agreement" means the voting and exchange trust agreement entered into on
January 16, 2003 between the Trust, Vermilion Acquisition Ltd. (prior to
its amalgamation with Vermilion) and the Voting and Exchange Agreement
Trustee.


2007
      Annual Information Form – Vermilion Energy Trust
                3








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 generally accepted accounting principles in
Canada.





Abbreviations





Oil
      and Natural Gas LiquidsBbl
            BarrelBbls
            BarrelsMbbls
            thousand
      barrelsBbls/d
            barrels per
    dayNGLs
            natural gas
      liquidsGJ
            GigajouleGJ/d
            gigajoule per
      dayNatural
      GasMcf
            thousand cubic
      feetMmcf
            million cubic
      feetBcf
            billion cubic
      feetMcf/d
            thousand cubic feet per
      dayMmcf/d
            million cubic feet per
      dayMMBTU
            million British Thermal
      UnitsOtherAECO-C
            Intra-Alberta Nova Inventory
      Transfer Price (NIT net price)API
            American Petroleum
      Institute°API
            An indication of the specific
      gravity of crude oil measured on the API gravity
    scale.Liquid petroleum with a specified
      gravity of 28 °API or higher is generally referred to as light crude
      oilARTC
            Alberta Royalty Tax
      CreditBOE
            barrel of oil equivalent of
      natural gas and crude oil on the basis of 1 BOE for 6 (unless otherwise
      stated) Mcf of natural gas (this conversion factor is an industry accepted
      norm and is not based on either energy content or current
      prices)BOE/D
            barrel of oil equivalent per
      daym3
            cubic
  metresMBOE
            1,000 barrels of oil
      equivalentmmboe
            million barrels of oil
      equivalentWTI
            West Texas Intermediate, the
      reference price paid in U.S. dollars at Cushing, Oklahoma for crude oil of
      standard gradeMW/h
            Megawatts per
      hour





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
  ByMcf
            Cubic
metres
            28.174Cubic
metres
            Cubic feet
            35.494Bbls
            Cubic
metres
            0.159Cubic
metres
            Bbls oil
            6.290Feet
            Metres
            0.305Metres
            Feet
            3.281Miles
            Kilometres
            1.609Kilometres
            Miles
            0.621Acres
            Hectares
            0.405Hectares
            Acres
            2.471











2007
      Annual Information Form – Vermilion Energy Trust
                4








SPECIAL
NOTE REGARDING FORWARD LOOKING STATEMENTS





Certain
statements included or incorporated by reference in this annual information form
may constitute forward-looking statements under applicable securities
legislation.  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 strategy and objectives, reserve quantities and
the discounted present value of future net cash flows from such reserves, net
revenue, future production levels, exploration plans, development plans,
acquisition and disposition plans and the timing thereof, operating and other
costs, and royalty rates.





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





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


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


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


·
            the
      timely receipt of required regulatory
approvals;


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


·
            currency,
      exchange and interest rates; and


·
            future
      oil and gas prices.





Although
the Trust 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 Trust can give no assurance that such
expectations will prove to be correct.  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 Trust 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 and natural gas and market
demand;


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


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


·
            the
      uncertainty of reserves estimates and reserves
  life;


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


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


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


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


·
            health,
      safety and environmental risks;


·
            uncertainties
      as to the availability and cost of
financing;


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


·
            general
      economic and business conditions;


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


·
            uncertainty
      in amounts and timing of royalty
payments;


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


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





The
forward-looking statements or information contained in this annual information
form are made as of the date hereof and the Trust 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.





2007
      Annual Information Form – Vermilion Energy Trust
                5








PRESENTATION
OF OIL AND GAS RESERVES AND PRODUCTION INFORMATION





All oil
and natural gas reserve information contained in this annual information form
has been prepared and presented in accordance with 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.  The Trust has adopted the standard of 6 Mcf:1 boe when
converting natural gas to barrels of oil equivalent.  Boes may be
misleading, particularly if used in isolation.  A boe conversion ratio
of 6 Mcf:1 boe is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the
wellhead.





NON-GAAP
MEASURES





This
annual information form includes non-GAAP measures as further described
herein.  These measures do not have standardized meanings prescribed
by GAAP and therefore may not be comparable with the calculations of similar
measures for other entities.





“Cash
distributions per unit” represents actual cash distributions paid per unit by
the Trust during the relevant periods.





“Cash
distributions net” is calculated as actual cash distributions paid or payable
for a given period less proceeds received by the Trust pursuant to the
Distribution Reinvestment Plan (“DRIP”).  Cash distributions both
before and after DRIP are reviewed by management and are also assessed as a
percentage of fund flows from operations to analyze how much of the cash that is
generated by the Trust is being used to fund distributions.





2007
      Annual Information Form – Vermilion Energy Trust
                6








VERMILION
ENERGY TRUST





General





Vermilion
Energy Trust is an open-end unincorporated investment trust governed by the laws
of the Province of Alberta and formed on December 16, 2002 pursuant to the Trust
Indenture.  The head and principal office of the Trust is located at
Suite 2800, 400 - 4th Avenue,
S.W., Calgary, Alberta, T2P 0J4.





Organizational
Structure of the Trust





The
following diagram describes the intercorporate relationships among the Trust and
each of its material subsidiaries (and Verenex Energy Inc.) as at December 31,
2007, where each principal subsidiary was incorporated or formed, the percentage
of votes attaching to all voting securities of each subsidiary beneficially
owned by Vermilion, as well as the flow of cash from the oil and gas properties
held by such subsidiaries to the Trust, and from the Trust to the
Unitholders.  Reference should be made to the appropriate sections of
this annual information form for a complete description of the structure of the
Trust.










Notes:


(1)
            The
      Unitholders own 100% of the Trust
Units.


(2)
            Cash
      distributions are made to Unitholders monthly based on the Trust's cash
      flow.


(3)
            Cash
      flow represents payments made by Vermilion to the Trust in respect of
      principal and interest payments on the Notes.  In addition to
      such payments, dividends may also be paid on the common shares of
      Vermilion.


(4)
            Cash
      flow represents payments made by the Partnership under the Royalty
      Agreement.


(5)
            The
      Trust will invest funds raised through any subsequent issuance of Trust
      Units in additional securities of Vermilion to enable Vermilion to make
      capital expenditures.  In addition, the Trust may reinvest a
      portion of the income received from Vermilion as well as any repayments of
      principal on the Notes in securities of Vermilion to enable Vermilion to
      make capital expenditures.




2007
      Annual Information Form – Vermilion Energy Trust
                7








Summary
Description of the Business





Vermilion Energy
Trust





The
Trust was established to acquire and hold, directly and indirectly, interests in
petroleum and natural gas properties.  Cash flow from the properties
flows from Vermilion to the Trust by way of interest payments and principal
repayments on the Notes and dividends declared on the common shares of
Vermilion, and from the Partnership to the Trust by way of royalty payments
under the Royalty Agreement.  Under the terms of the Trust Indenture,
the Trust is also entitled to:





(a)
            acquire
      or invest in securities of Vermilion and in the securities of any other
      entity including without limitation, bodies corporate, partnerships or
      trusts, and borrowing funds or otherwise obtaining credit for that
      purpose;





(b)
            acquire
      royalties in respect of Canadian resource properties as defined in the Tax
      Act and making any deferred royalty purchase payments which may be
      required with respect to such royalties; provided however that in no event
      shall the Trust invest in any royalties which constitute an interest in
      land or a covenant running with the properties with respect to which such
      royalties relate;





(c)
            dispose
      of any part of the property of the Trust, including, without limitation,
      any securities of Vermilion;





(d)
            temporarily
      hold cash and investments for the purposes of paying the expenses and the
      liabilities of the Trust, making other Permitted Investments as
      contemplated by the Trust Indenture, paying amounts payable by the Trust
      in connection with the redemption of any Trust Units, and making
      distributions to Unitholders; and





(e)
            pay
      costs, fees and expenses associated with the foregoing purposes or
      incidental thereto.





The
Trustee is prohibited from acquiring any investment which would result in
the Trust not being considered either a "unit trust" or a "mutual fund trust"
for purposes of the Tax Act.





The
Trustee may declare payable to the Unitholders all or any part of the net income
of the Trust.  It is currently anticipated that the only income to be
received by the Trust will be from the interest received on the principal amount
of Notes, royalty income pursuant to the Royalty Agreement, and dividends on the
common shares of Vermilion.   The Trust currently makes monthly
cash distributions to Unitholders of the interest income earned from the Notes,
income earned under the Royalty Agreement and dividends received on the common
shares of Vermilion, after expenses, if any, and any cash redemptions of Trust
Units.





Unitholders
receive monthly distributions of the cash flow generated by Vermilion and
distributed to Unitholders through the Trust.  The Trust currently
employs a strategy which: (i) provides Unitholders with a competitive
annual cash on cash yield through monthly cash distributions, (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 Trust through the development of growth opportunities that are intended
to provide long-term stable cash flows and be accretive to the existing
Unitholders.  The Trust intends to finance acquisitions through bank
financing and the issuance of additional Trust Units from treasury, while
maintaining prudent leverage.





Vermilion Resources
Ltd.





Vermilion
Resources Ltd. was incorporated under the ABCA on November 23,
1993.  On January 1, 2003, Vermilion amalgamated with its
wholly-owned subsidiary, 973675 Alberta Ltd. and on January 15, 2003,
Vermilion amalgamated with its wholly-owned subsidiaries, Big Sky Resources
Inc., Vermilion Gas Marketing Inc. and 962134 Alberta Ltd.  On
January 22, 2003, Vermilion was amalgamated with Vermilion Acquisition Ltd.
pursuant to the Arrangement.





The
Trust is the sole holder of Vermilion common shares.  Certain former
shareholders of Vermilion own Exchangeable Shares of Vermilion in accordance
with the elections made by such holders under the
Arrangement.  Vermilion continues to carry on an oil and natural gas
business similar to that carried on by Vermilion prior to the Arrangement
becoming effective.





The
head office of Vermilion is located at Suite 2800, 400 – 4th Avenue
S.W., Calgary, Alberta, T2P 0J4 and its registered office is located at
Suite 3700, 400 – 3rd Avenue
S.W., Calgary, Alberta, T2P 4H2.


2007
      Annual Information Form – Vermilion Energy Trust
                8








History
of Vermilion





The
following describes the development of Vermilion's business over the last three
completed financial years.





On
March 31, 2005, Vermilion closed the acquisition of certain oil producing
properties in Australia for $95.0 million (effective January 1,
2005).  Vermilion acquired 4,800 BOE/D of offshore producing oil
properties.





On July
10, 2006, the Trust, through its France subsidiary, acquired an 89.886% interest
in Esso Rep, from Esso SAF, a subsidiary of Exxon Mobil
Corporation.  On July 12, 2006 the Trust acquired the remaining
10.114% interest in Esso Rep from another party resulting in an ownership
interest of 100%.





On June
20, 2007, Vermilion completed the acquisition of an additional 40% interest in
the Offshore Wandoo Field.  The purchase price, exclusive of the
acquired working capital deficiency was $117.9 million.  The
transaction added approximately 3,000 BOE/D.  This transaction was not
a significant transaction as contemplated in National Instrument 51-102 Continuous Disclosure
Obligations.





As at
January 31, 2008, Vermilion had 261 full time employees of which 120 employees
were located in its head office, 22 employees in its Canadian field offices, 85
employees in France, 16 employees in the Netherlands and 18 employees in
Australia.





2007
      Annual Information Form – Vermilion Energy Trust
                9








NARRATIVE
DESCRIPTION OF THE BUSINESS





Stated
Business Objectives





Vermilion
is actively engaged in the business of oil and natural gas exploitation,
development, acquisition and production in Canada, France, the Netherlands and
Australia.  Vermilion's business plan is to maximize returns to the
Trust from its oil and natural gas properties and related
assets.  Where possible, Vermilion 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 Trust's
business prospects.





Description
of Properties





The
following is a description of the oil and natural gas properties, plants,
facilities and installations in which Vermilion has an interest and that are
material to Vermilion's operations and exploration activities.  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, 2007, based on
forecast cost and price assumptions as evaluated in the GLJ Report.





Canada
Assets





Vermilion’s
production in Canada is located primarily in three areas, all in Alberta:
Drayton Valley, Slave Lake and Central Alberta.  Vermilion’s main
producing gas areas are Drayton Valley and Central Alberta while Slave Lake is
the main oil producing area.





In
Canada, Vermilion holds an average working interest of 69.7% in 307,533 (214,381
net) acres of developed land, 455 (287 net) producing natural gas wells and 343
(217 net) producing oil wells as at December 31, 2007.  Vermilion
operates three natural gas plants and has an ownership interest in a fourth,
resulting in combined gross processing capacity of over 84 Mmcf/d.  In
addition, Vermilion has treating capacity of over 13,000 Bbls/d of oil in four
oil batteries.





For the
year ended December 31, 2007, production in Canada averaged approximately 47.7
Mmcf/d of natural gas and 4,081 Bbls/d of oil and NGLs.





The GLJ
Report assigned 28,458 MBOE of total proven reserves and 42,369 MBOE of proved
plus probable reserves to Vermilion's properties located in Canada as at
December 31, 2007.





France
Assets





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 holds an 85% working interest in
163,884 acres of developed land in the Aquitaine and Paris
Basins.  Vermilion had 208 (183 net) producing oil wells in France as
at December 31, 2007.





For the
year ended December 31, 2007, production in France averaged approximately 8,621
Bbls/d of oil and 1.1 Mmcf/d of natural gas.





The GLJ
Report assigned 32,998 MBOE of total proven reserves and 49,723 MBOE of proved
plus probable reserves to Vermilion's properties located in France.





2007
      Annual Information Form – Vermilion Energy Trust
                10








Netherlands
Assets





Vermilion's
Netherlands assets consist of six onshore concessions and one offshore
concession located in the northern part of the country.  Production
consists solely of natural gas with a small amount of related
condensate.  The assets include three gas treatment
centres.  Vermilion holds an approximate 64% working interest over the
six concessions in 456,675 (293,095 net) acres of developed land and 58 (46 net)
producing gas wells as at December 31, 2007.





For the
year ended December 31, 2007, Vermilion's production in the Netherlands averaged
40 Bbls/d of NGLs and 26.2 Mmcf/d of natural gas.





The GLJ
Report assigned 8,120 MBOE of total proven reserves and 12,415 MBOE of proven
plus probable reserves to Vermilion's properties located in the
Netherlands.





Australia
Assets





Vermilion's
Australia assets consist of a 100% operated interest in an offshore field
located on Western Australia's northwest shelf.  Production consists
solely of oil.  Vermilion holds a 100% working interest in the Wandoo
block, which is comprised of 241.1 square kilometres and is considered a
production license.  All acreage therefore is classified as
producing.





For the
year ended December 31, 2007, Vermilion's production in the Australia averaged
6,065 Bbls/d of oil.





The GLJ
Report assigned 16,979 MBOE of total proven reserves and 23,108 MBOE of proven
plus probable reserves to Vermilion's properties located in
Australia.





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.  Pricing used in
the forecast price evaluations is set forth in the notes to the
tables.





Information
contained in this section is effective December 31, 2007 unless otherwise
stated.  The reserves information was prepared on February 13,
2008.





All
evaluations of future net production 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.  It
should not be assumed that the discounted future net production revenue
estimated by the GLJ Report represents 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 Canada, France, the Netherlands and Australia 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.





Vermilion
accounts for its investment in Verenex using the equity method and therefore the
reserves of Verenex are not included in the tables below, except to the extent
of Vermilion’s working interest.





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 production group using forecast prices and costs.  For
Canada, the tables following include AGCA.





The
following tables may not total due to rounding.





2007
      Annual Information Form – Vermilion Energy Trust
                11








Oil
and Gas Reserves - Based on Forecast Prices and Costs(8)




Light and Medium
      Oil
            
            
            
            
            
            Natural Gas
            
            
            Natural Gas
      Liquids
            
            
            
            
            
            BOEsGross(1)
            
            
            Net(1)
            
            
            Gross(1)
            
            
            Net(1)
            
            
            Gross(1)
            
            
            Net(1)
            
            
            Gross(1)
            
            
            Net(1)(Mbbl)
            
            
            (Mbbl)
            
            
            (Mmcf)
            
            
            (Mmcf)
            
            
            (Mbbl)
            
            
            (Mbbl)
            
            
            (MBOE)
            
            
            (MBOE)Proved Developed
      Producing(2)(5)Canada
            
            
            7,198
            
            
            
            6,679
            
            
            
            80,009
            
            
            
            65,198
            
            
            
            2,642
            
            
            
            1,815
            
            
            
            23,175
            
            
            
            19,360France
            
            
            29,162
            
            
            
            26,418
            
            
            
            2,462
            
            
            
            2,359
            
            
            
            -
            
            
            
            -
            
            
            
            29,572
            
            
            
            26,811Netherlands
            
            
            -
            
            
            
            -
            
            
            
            48,205
            
            
            
            48,205
            
            
            
            53
            
            
            
            53
            
            
            
            8,087
            
            
            
            8,087Australia
            
            
            16,179
            
            
            
            16,179
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            16,179
            
            
            
            16,179Total Proved Developed
      Producing
            
            
            52,539
            
            
            
            49,277
            
            
            
            130,676
            
            
            
            115,763
            
            
            
            2,695
            
            
            
            1,868
            
            
            
            77,013
            
            
            
            70,439Proved Developed
      Non-Producing(2)(6)Canada
            
            
            17
            
            
            
            15
            
            
            
            3,988
            
            
            
            3,414
            
            
            
            85
            
            
            
            57
            
            
            
            767
            
            
            
            641France
            
            
            959
            
            
            
            857
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            959
            
            
            
            857Netherlands
            
            
            -
            
            
            
            -
            
            
            
            194
            
            
            
            194
            
            
            
            -
            
            
            
            -
            
            
            
            32
            
            
            
            32Australia
            
            
            800
            
            
            
            800
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            800
            
            
            
            800Total Proved Developed
      Non-Producing
            
            
            1,776
            
            
            
            1,673
            
            
            
            4,182
            
            
            
            3,608
            
            
            
            85
            
            
            
            58
            
            
            
            2,558
            
            
            
            2,332Proved Undeveloped(2)(7)Canada
            
            
            268
            
            
            
            228
            
            
            
            24,857
            
            
            
            21,405
            
            
            
            34
            
            
            
            24
            
            
            
            4,445
            
            
            
            3,820France
            
            
            2,466
            
            
            
            2,291
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            2,466
            
            
            
            2,291Netherlands
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Australia
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Total Proved
      Undeveloped
            
            
            2,734
            
            
            
            2,519
            
            
            
            24,857
            
            
            
            21,405
            
            
            
            34
            
            
            
            24
            
            
            
            6,911
            
            
            
            6,111Proved(2)Canada
            
            
            7,483
            
            
            
            6,923
            
            
            
            108,855
            
            
            
            90,018
            
            
            
            2,762
            
            
            
            1,896
            
            
            
            28,388
            
            
            
            23,822France
            
            
            32,587
            
            
            
            29,566
            
            
            
            2,462
            
            
            
            2,359
            
            
            
            -
            
            
            
            -
            
            
            
            32,997
            
            
            
            29,959Netherlands
            
            
            -
            
            
            
            -
            
            
            
            48,399
            
            
            
            48,399
            
            
            
            53
            
            
            
            53
            
            
            
            8,120
            
            
            
            8,120Australia
            
            
            16,979
            
            
            
            16,979
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            16,979
            
            
            
            16,979Total
Proved
            
            
            57,050
            
            
            
            53,469
            
            
            
            159,716
            
            
            
            140,776
            
            
            
            2,815
            
            
            
            1,950
            
            
            
            86,484
            
            
            
            78,882Probable(3)Canada
            
            
            1,832
            
            
            
            1,680
            
            
            
            62,215
            
            
            
            51,310
            
            
            
            1,689
            
            
            
            1,158
            
            
            
            13,890
            
            
            
            11,390France
            
            
            16,602
            
            
            
            14,685
            
            
            
            739
            
            
            
            706
            
            
            
            -
            
            
            
            -
            
            
            
            16,725
            
            
            
            14,803Netherlands
            
            
            -
            
            
            
            -
            
            
            
            25,600
            
            
            
            25,600
            
            
            
            29
            
            
            
            29
            
            
            
            4,296
            
            
            
            4,296Australia
            
            
            6,129
            
            
            
            6,129
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            6,129
            
            
            
            6,129Total
    Probable
            
            
            24,563
            
            
            
            22,494
            
            
            
            88,553
            
            
            
            77,615
            
            
            
            1,718
            
            
            
            1,187
            
            
            
            41,040
            
            
            
            36,617Proved Plus Probable(2)(3)Canada
            
            
            9,315
            
            
            
            8,603
            
            
            
            171,069
            
            
            
            141,327
            
            
            
            4,451
            
            
            
            3,054
            
            
            
            42,278
            
            
            
            35,212France
            
            
            49,189
            
            
            
            44,251
            
            
            
            3,201
            
            
            
            3,065
            
            
            
            -
            
            
            
            -
            
            
            
            49,723
            
            
            
            44,762Netherlands
            
            
            -
            
            
            
            -
            
            
            
            73,999
            
            
            
            73,999
            
            
            
            82
            
            
            
            82
            
            
            
            12,415
            
            
            
            12,415Australia
            
            
            23,108
            
            
            
            23,108
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            23,108
            
            
            
            23,108Total Proved Plus
      Probable
            
            
            81,612
            
            
            
            75,962
            
            
            
            248,269
            
            
            
            218,391
            
            
            
            4,533
            
            
            
            3,136
            
            
            
            127,523
            
            
            
            115,497













2007
      Annual Information Form – Vermilion Energy Trust
                12








Net
Present Values of Future Net Revenue - Based on Forecast Prices and Costs(8)




Before Deducting Income Taxes
      Discounted At
            
            
            After Deducting Income Taxes
      Discounted At(MM$)
            
            
            0%
            
            
            
            5%
            
            
            
            10%
            
            
            
            15%
            
            
            
            20%
            
            
            
            0%
            
            
            
            5%
            
            
            
            10%
            
            
            
            15%
            
            
            
            20%Proved Developed
      Producing(2)(5)Canada
            
            
            684
            
            
            
            539
            
            
            
            450
            
            
            
            389
            
            
            
            346
            
            
            
            684
            
            
            
            539
            
            
            
            450
            
            
            
            389
            
            
            
            346France
            
            
            1,348
            
            
            
            957
            
            
            
            752
            
            
            
            627
            
            
            
            542
            
            
            
            903
            
            
            
            638
            
            
            
            498
            
            
            
            414
            
            
            
            356Netherlands
            
            
            240
            
            
            
            206
            
            
            
            182
            
            
            
            164
            
            
            
            149
            
            
            
            160
            
            
            
            137
            
            
            
            121
            
            
            
            108
            
            
            
            98Australia
            
            
            760
            
            
            
            644
            
            
            
            558
            
            
            
            494
            
            
            
            444
            
            
            
            320
            
            
            
            273
            
            
            
            237
            
            
            
            210
            
            
            
            188Total Proved Developed
      Producing
            
            
            3,032
            
            
            
            2,345
            
            
            
            1,942
            
            
            
            1,674
            
            
            
            1,482
            
            
            
            2,068
            
            
            
            1,587
            
            
            
            1,306
            
            
            
            1,121
            
            
            
            989Proved Developed
      Non-Producing(2)(6)Canada
            
            
            18
            
            
            
            12
            
            
            
            9
            
            
            
            7
            
            
            
            6
            
            
            
            15
            
            
            
            10
            
            
            
            8
            
            
            
            7
            
            
            
            5France
            
            
            39
            
            
            
            28
            
            
            
            21
            
            
            
            17
            
            
            
            14
            
            
            
            26
            
            
            
            18
            
            
            
            13
            
            
            
            10
            
            
            
            8Netherlands
            
            
            1
            
            
            
            1
            
            
            
            1
            
            
            
            1
            
            
            
            1
            
            
            
            1
            
            
            
            1
            
            
            
            -
            
            
            
            1
            
            
            
            1Australia
            
            
            45
            
            
            
            39
            
            
            
            34
            
            
            
            30
            
            
            
            27
            
            
            
            54
            
            
            
            43
            
            
            
            36
            
            
            
            31
            
            
            
            28Total Proved Developed
      Non-Producing
            
            
            103
            
            
            
            80
            
            
            
            65
            
            
            
            55
            
            
            
            48
            
            
            
            79
            
            
            
            62
            
            
            
            50
            
            
            
            42
            
            
            
            36Proved Undeveloped(2)(7)Canada
            
            
            75
            
            
            
            43
            
            
            
            24
            
            
            
            12
            
            
            
            5
            
            
            
            62
            
            
            
            37
            
            
            
            21
            
            
            
            11
            
            
            
            5France
            
            
            160
            
            
            
            96
            
            
            
            65
            
            
            
            47
            
            
            
            36
            
            
            
            105
            
            
            
            61
            
            
            
            41
            
            
            
            28
            
            
            
            22Netherlands
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            1
            
            
            
            2
            
            
            
            3
            
            
            
            4Australia
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            1
            
            
            
            2
            
            
            
            3
            
            
            
            4Total Proved
      Undeveloped
            
            
            236
            
            
            
            139
            
            
            
            89
            
            
            
            60
            
            
            
            41
            
            
            
            182
            
            
            
            107
            
            
            
            69
            
            
            
            45
            
            
            
            31Proved(2)Canada
            
            
            778
            
            
            
            594
            
            
            
            482
            
            
            
            409
            
            
            
            357
            
            
            
            761
            
            
            
            586
            
            
            
            479
            
            
            
            407
            
            
            
            356France
            
            
            1,547
            
            
            
            1,081
            
            
            
            838
            
            
            
            691
            
            
            
            593
            
            
            
            1,034
            
            
            
            717
            
            
            
            552
            
            
            
            452
            
            
            
            386Netherlands
            
            
            241
            
            
            
            207
            
            
            
            183
            
            
            
            164
            
            
            
            150
            
            
            
            161
            
            
            
            138
            
            
            
            121
            
            
            
            109
            
            
            
            99Australia
            
            
            805
            
            
            
            682
            
            
            
            592
            
            
            
            524
            
            
            
            471
            
            
            
            374
            
            
            
            316
            
            
            
            273
            
            
            
            241
            
            
            
            216Total
Proved
            
            
            3,371
            
            
            
            2,563
            
            
            
            2,096
            
            
            
            1,789
            
            
            
            1,571
            
            
            
            2,329
            
            
            
            1,756
            
            
            
            1,425
            
            
            
            1,208
            
            
            
            1,056Probable(3)Canada
            
            
            356
            
            
            
            210
            
            
            
            139
            
            
            
            98
            
            
            
            73
            
            
            
            277
            
            
            
            169
            
            
            
            114
            
            
            
            83
            
            
            
            63France
            
            
            886
            
            
            
            488
            
            
            
            318
            
            
            
            226
            
            
            
            169
            
            
            
            580
            
            
            
            307
            
            
            
            190
            
            
            
            128
            
            
            
            89Netherlands
            
            
            176
            
            
            
            131
            
            
            
            102
            
            
            
            83
            
            
            
            69
            
            
            
            96
            
            
            
            71
            
            
            
            55
            
            
            
            44
            
            
            
            36Australia
            
            
            245
            
            
            
            160
            
            
            
            111
            
            
            
            82
            
            
            
            63
            
            
            
            106
            
            
            
            68
            
            
            
            47
            
            
            
            34
            
            
            
            26Total
    Probable
            
            
            1,662
            
            
            
            989
            
            
            
            670
            
            
            
            489
            
            
            
            375
            
            
            
            1,059
            
            
            
            615
            
            
            
            406
            
            
            
            290
            
            
            
            215Proved Plus Probable(2)(3)Canada
            
            
            1,134
            
            
            
            804
            
            
            
            621
            
            
            
            507
            
            
            
            429
            
            
            
            1,038
            
            
            
            755
            
            
            
            593
            
            
            
            490
            
            
            
            419France
            
            
            2,433
            
            
            
            1,569
            
            
            
            1,157
            
            
            
            918
            
            
            
            762
            
            
            
            1,614
            
            
            
            1,024
            
            
            
            742
            
            
            
            580
            
            
            
            475Netherlands
            
            
            417
            
            
            
            338
            
            
            
            285
            
            
            
            247
            
            
            
            219
            
            
            
            257
            
            
            
            209
            
            
            
            176
            
            
            
            153
            
            
            
            135Australia
            
            
            1,050
            
            
            
            842
            
            
            
            703
            
            
            
            606
            
            
            
            534
            
            
            
            480
            
            
            
            384
            
            
            
            320
            
            
            
            275
            
            
            
            242Total Proved Plus
      Probable
            
            
            5,033
            
            
            
            3,552
            
            
            
            2,766
            
            
            
            2,278
            
            
            
            1,945
            
            
            
            3,388
            
            
            
            2,371
            
            
            
            1,831
            
            
            
            1,498
            
            
            
            1,271





Total
Future Net Revenue (Undiscounted) Based on Forecast Prices and Costs(8)




Future Net
            
            
            
            
            
            Future NetAbandonment
            
            
            Revenue
            
            
            
            
            
            RevenueCapital
            
            
            and
            
            
            Before
            
            
            
            
            
            AfterOperating
            
            
            Development
            
            
            Reclamation
            
            
            Income
            
            
            Income
            
            
            Income(M$)
            
            
            
            Revenue
            
            
            Royalties
            
            
            Costs
            
            
            Costs
            
            
            Costs
            
            
            Taxes
            
            
            Taxes
            
            
            TaxesProved(2)Canada
            
            
            
            1,719,835
            
            
            
            228,434
            
            
            
            586,180
            
            
            
            94,702
            
            
            
            32,887
            
            
            
            777,631
            
            
            
            17,119
            
            
            
            760,512France
            
            
            
            2,607,988
            
            
            
            237,773
            
            
            
            665,553
            
            
            
            105,756
            
            
            
            51,801
            
            
            
            1,547,105
            
            
            
            513,202
            
            
            
            1,033,902Netherlands
            
            
            
            451,409
            
            
            
            -
            
            
            
            166,615
            
            
            
            32,953
            
            
            
            10,732
            
            
            
            241,108
            
            
            
            80,212
            
            
            
            160,897Australia
            
            
            
            1,404,172
            
            
            
            -
            
            
            
            508,473
            
            
            
            62,822
            
            
            
            27,939
            
            
            
            804,939
            
            
            
            430,880
            
            
            
            374,059Total
Proved
            
            
            
            6,183,404
            
            
            
            466,207
            
            
            
            1,926,822
            
            
            
            296,233
            
            
            
            123,359
            
            
            
            3,370,783
            
            
            
            1,041,413
            
            
            
            2,329,370Proved Plus Probable(2)(3)Canada
            
            
            
            2,553,620
            
            
            
            353,339
            
            
            
            857,249
            
            
            
            167,951
            
            
            
            41,571
            
            
            
            1,133,510
            
            
            
            95,946
            
            
            
            1,037,564France
            
            
            
            4,025,091
            
            
            
            398,948
            
            
            
            887,069
            
            
            
            237,197
            
            
            
            68,892
            
            
            
            2,432,985
            
            
            
            819,261
            
            
            
            1,613,723Netherlands
            
            
            
            691,160
            
            
            
            -
            
            
            
            217,815
            
            
            
            44,249
            
            
            
            12,391
            
            
            
            416,705
            
            
            
            159,757
            
            
            
            256,948Australia
            
            
            
            1,953,741
            
            
            
            -
            
            
            
            784,291
            
            
            
            89,012
            
            
            
            30,863
            
            
            
            1,049,575
            
            
            
            569,909
            
            
            
            479,666Total Proved Plus
      Probable
            
            
            
            9,223,612
            
            
            
            752,287
            
            
            
            2,746,425
            
            
            
            538,409
            
            
            
            153,717
            
            
            
            5,032,775
            
            
            
            1,644,873
            
            
            
            3,387,902











2007
      Annual Information Form – Vermilion Energy Trust
                13








Future
Net Revenue by Production Group Based on Forecast Prices and Costs(8)




Future Net
      RevenueBefore Income
      Taxes(Discounted at 10% Per
      Year)
            
            
            Unit ValueProved(2)
            
            (M$)
            
            
            ($/boe)Light and
      medium oil
            
            
            1,626,425
            
            
            
            29.70Natural
      gas
            
            
            388,102
            
            
            
            21.94Non-conventional
      oil and gas activities
            
            
            81,049
            
            
            
            12.62Total
Proved
            
            
            2,095,576
            
            
            
            26.57Proved Plus Probable(2)(3)Light and
      medium oil
            
            
            2,085,879
            
            
            
            26.88Natural
      gas
            
            
            572,099
            
            
            
            20.34Non-conventional
      oil and gas activities
            
            
            107,608
            
            
            
            11.01Total Proved Plus
      Probable
            
            
            2,765,585
            
            
            
            23.95





Notes:


(1)
            "Gross
      Reserves" are Vermilion's working interest (operating or non-operating)
      share before deducting 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.


(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.


(8)
            The
      pricing assumptions used in the GLJ Report with respect to net values of
      future net revenue (forecast) as well as the inflation rates used for
      operating and capital costs are set forth below.  The Natural
      Gas Liquids 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.





Natural Gas
            
            
            Natural Gas
            
            
            Inflation
            
            
            ExchangeLight and Medium Crude
      Oil
            
            
            Crude Oil
            
            
            Crude Oil
            
            
            Natural Gas
            
            
            Netherlands
            
            
            Liquids
            
            
            Rate
            
            
            RateEdmonton
            
            
            Cromer
            
            
            Brent Blend
            
            
            Australia
            
            
            
            
            
            Wellhead
            
            
            FOBWTI Cushing
            
            
            Par Price
            
            
            Medium
            
            
            FOB
            
            
            Wandoo
            
            
            AECO
            
            
            Gas
            
            
            FieldOklahoma
            
            
            40oAPI
            
            
            29.3oAPI
            
            
            North Sea
            
            
            Field
            
            
            Gas Price
            
            
            Price
            
            
            Gate
            
            
            PercentYear
            
            ($US/Bbl)
            
            
            ($Cdn/Bbl)
            
            
            ($Cdn/Bbl)
            
            
            ($US/Bbl)
            
            
            ($Cdn/Bbl)
            
            
            ($Cdn/mmbtu)
            
            
            ($Cdn/Mcf)
            
            
            ($Cdn/Bbl)
            
            
            Per Year
            
            
            ($US/$Cdn)Forecast2008
            
            
            92.00
            
            
            
            91.10
            
            
            
            79.26
            
            
            
            90.50
            
            
            
            91.00
            
            
            
            6.75
            
            
            
            9.47
            
            
            
            73.76
            
            
            
            2.0
            
            
            
            1.02009
            
            
            88.00
            
            
            
            87.10
            
            
            
            75.78
            
            
            
            86.50
            
            
            
            87.00
            
            
            
            7.55
            
            
            
            9.74
            
            
            
            70.44
            
            
            
            2.0
            
            
            
            1.02010
            
            
            84.00
            
            
            
            83.10
            
            
            
            72.30
            
            
            
            82.50
            
            
            
            80.50
            
            
            
            7.60
            
            
            
            9.30
            
            
            
            67.22
            
            
            
            2.0
            
            
            
            1.02011
            
            
            82.00
            
            
            
            81.10
            
            
            
            70.56
            
            
            
            80.50
            
            
            
            78.50
            
            
            
            7.60
            
            
            
            8.97
            
            
            
            65.65
            
            
            
            2.0
            
            
            
            1.02012
            
            
            82.00
            
            
            
            81.10
            
            
            
            70.56
            
            
            
            80.50
            
            
            
            78.50
            
            
            
            7.60
            
            
            
            8.86
            
            
            
            65.65
            
            
            
            2.0
            
            
            
            1.0





Reconciliations
of Changes in Reserves and Future Net Revenue




The
following table sets forth a reconciliation of the changes in Vermilion's
company gross light and medium crude oil, associated and non-associated gas
(combined) reserves as at December 31, 2007 against such reserves as at December
31, 2006 based on the forecast price and cost assumptions set forth in note 8
under the heading "Statement of Reserves Data and Other Oil and Gas Information
- Future Net Revenue by Production Based on Forecast Prices and
Costs".




2007
      Annual Information Form – Vermilion Energy Trust
                14








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




Light and Medium
      Oil
              
              
              Associated and Non-Associated
      Gas
              
              
              Natural Gas
      LiquidsProved Plus
              
              
              
              
              
              
              
              
              Proved Plus
              
              
              
              
              
              
              
              
              Proved PlusProved
              
              
              Probable
              
              
              Probable
              
              
              Proved
              
              
              Probable
              
              
              Probable
              
              
              Proved
              
              
              Probable
              
              
              Probable(Mbbl)
              
              
              (Mbbl)
              
              
              (Mbbl)
              
              
              (Mmcf)
              
              
              (Mmcf)
              
              
              (Mmcf)
              
              
              (Mbbl)
              
              
              (Mbbl)
              
              
              (Mbbl)CANADAAt December 31,
      2006
              
              
              7,970
              
              
              
              1,981
              
              
              
              9,951
              
              
              
              118,370
              
              
              
              63,874
              
              
              
              182,244
              
              
              
              3,144
              
              
              
              1,674
              
              
              
              4,818Extensions and
      Improved Recovery
              
              
              108
              
              
              
              80
              
              
              
              188
              
              
              
              9,167
              
              
              
              6,768
              
              
              
              15,937
              
              
              
              138
              
              
              
              213
              
              
              
              351Technical
      Revisions
              
              
              342
              
              
              
              (229
              )
              
              
              113
              
              
              
              (1,381
              )
              
              
              (8,220
              )
              
              
              (9,601
              )
              
              
              (48
              )
              
              
              (185
              )
              
              
              (232
              )Discoveries
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              450
              
              
              
              (209
              )
              
              
              240
              
              
              
              16
              
              
              
              (13
              )
              
              
              3Acquisitions
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Dispositions
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Production
              
              
              (937
              )
              
              
              -
              
              
              
              (937
              )
              
              
              (17,751
              )
              
              
              -
              
              
              
              (17,751
              )
              
              
              (488
              )
              
              
              -
              
              
              
              (488
              )Economic
      Factors
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -At December 31,
      2007
              
              
              7,483
              
              
              
              1,832
              
              
              
              9,315
              
              
              
              108,855
              
              
              
              62,214
              
              
              
              171,069
              
              
              
              2,762
              
              
              
              1,689
              
              
              
              4,451FRANCEAt December 31,
      2006
              
              
              34,133
              
              
              
              15,374
              
              
              
              49,507
              
              
              
              2,403
              
              
              
              530
              
              
              
              2,933
              
              
              
              -
              
              
              
              -
              
              
              
              -Extensions and
      Improved Recovery
              
              
              565
              
              
              
              1,072
              
              
              
              1,637
              
              
              
              -
              
              
              
              4
              
              
              
              4
              
              
              
              -
              
              
              
              -
              
              
              
              -Technical
      Revisions
              
              
              959
              
              
              
              52
              
              
              
              1,011
              
              
              
              166
              
              
              
              205
              
              
              
              371
              
              
              
              -
              
              
              
              -
              
              
              
              -Discoveries
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Acquisitions
              
              
              127
              
              
              
              105
              
              
              
              232
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Dispositions
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Production
              
              
              (3,198
              )
              
              
              -
              
              
              
              (3,198
              )
              
              
              (107
              )
              
              
              -
              
              
              
              (107
              )
              
              
              -
              
              
              
              -
              
              
              
              -Economic
      Factors
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -At December 31,
      2007
              
              
              32,586
              
              
              
              16,603
              
              
              
              49,189
              
              
              
              2,462
              
              
              
              739
              
              
              
              3,201
              
              
              
              -
              
              
              
              -
              
              
              
              -NETHERLANDSAt December 31,
      2006
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              55,814
              
              
              
              21,119
              
              
              
              76,933
              
              
              
              84
              
              
              
              34
              
              
              
              118Extensions and
      Improved Recovery
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              4,669
              
              
              
              4,669
              
              
              
              -
              
              
              
              5
              
              
              
              5Technical
      Revisions
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              2,204
              
              
              
              (188
              )
              
              
              2,016
              
              
              
              (23
              )
              
              
              (10
              )
              
              
              (33
              )Discoveries
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Acquisitions
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Dispositions
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Production
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              (9,619
              )
              
              
              -
              
              
              
              (9,619
              )
              
              
              (8
              )
              
              
              -
              
              
              
              (8
              )Economic
      Factors
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -At December 31,
      2007
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              48,399
              
              
              
              25,600
              
              
              
              73,999
              
              
              
              53
              
              
              
              29
              
              
              
              82AUSTRALIAAt December 31,
      2006
              
              
              11,569
              
              
              
              3,538
              
              
              
              15,107
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Extensions and
      Improved Recovery
              
              
              100
              
              
              
              -
              
              
              
              100
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Technical
      Revisions
              
              
              372
              
              
              
              233
              
              
              
              605
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Discoveries
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Acquisitions
              
              
              7,152
              
              
              
              2,358
              
              
              
              9,510
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Dispositions
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Production
              
              
              (2,214
              )
              
              
              -
              
              
              
              (2,214
              )
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Economic
      Factors
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -At December 31,
      2007
              
              
              16,979
              
              
              
              6,129
              
              
              
              23,108
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -TOTAL
    VERMILIONAt December 31,
      2006
              
              
              53,672
              
              
              
              20,893
              
              
              
              74,565
              
              
              
              176,587
              
              
              
              85,523
              
              
              
              262,110
              
              
              
              3,228
              
              
              
              1,708
              
              
              
              4,936Extensions and
      Improved Recovery
              
              
              773
              
              
              
              1,152
              
              
              
              1,925
              
              
              
              9,167
              
              
              
              11,441
              
              
              
              20,610
              
              
              
              138
              
              
              
              218
              
              
              
              356Technical
      Revisions
              
              
              1,672
              
              
              
              56
              
              
              
              1,729
              
              
              
              989
              
              
              
              (8,203
              )
              
              
              (7,214
              )
              
              
              (71
              )
              
              
              (195
              )
              
              
              (266
              )Discoveries
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              450
              
              
              
              (209
              )
              
              
              240
              
              
              
              16
              
              
              
              (13
              )
              
              
              3Acquisitions
              
              
              7,279
              
              
              
              2,463
              
              
              
              9,742
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Dispositions
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Production
              
              
              (6,348
              )
              
              
              -
              
              
              
              (6,348
              )
              
              
              (27,477
              )
              
              
              -
              
              
              
              (27,477
              )
              
              
              (495
              )
              
              
              -
              
              
              
              (495
              )Economic
      Factors
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -At December 31,
      2007
              
              
              57,048
              
              
              
              24,564
              
              
              
              81,612
              
              
              
              159,716
              
              
              
              88,553
              
              
              
              248,269
              
              
              
              2,815
              
              
              
              1,718
              
              
              
              4,533





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 two years.  This timetable may be altered depending on
outside market forces, changes in capital allocations and impact of future
acquisitions and dispositions.





2007
      Annual Information Form – Vermilion Energy Trust
                15








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





Company
Gross Reserves First Attributed by Year





Light &
            
            
            Natural
            
            
            Natural
            
            
            Coalbed
            
            
            TotalMediumOil
            
            
            Gas
            
            
            Gas Liquids
            
            
            Methane
            
            
            Oil
    Equivalent(Mbbl)
            
            
            (Mmcf)
            
            
            (Mbbl)
            
            
            (Mmcf)
            
            
            (Mboe)Proved
      UndevelopedPrior
            
            
            468
            
            
            
            503
            
            
            
            12
            
            
            
            6,906
            
            
            
            1,7152005
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            10,386
            
            
            
            1,7312006
            
            
            337
            
            
            
            -
            
            
            
            -
            
            
            
            3,251
            
            
            
            8782007
            
            
            1,930
            
            
            
            425
            
            
            
            22
            
            
            
            3,386
            
            
            
            2,587Total Proved
      Undeveloped
            
            
            2,734
            
            
            
            928
            
            
            
            34
            
            
            
            23,930
            
            
            
            6,911Probable
      UndevelopedPrior
            
            
            2,828
            
            
            
            1,473
            
            
            
            66
            
            
            
            3,988
            
            
            
            3,8042005
            
            
            372
            
            
            
            -
            
            
            
            -
            
            
            
            4,485
            
            
            
            1,1192006
            
            
            1,220
            
            
            
            8,070
            
            
            
            378
            
            
            
            4,110
            
            
            
            3,6282007
            
            
            3,643
            
            
            
            11,133
            
            
            
            365
            
            
            
            4,344
            
            
            
            6,587Total Probable
      Undeveloped
            
            
            8,063
            
            
            
            20,676
            
            
            
            808
            
            
            
            16,928
            
            
            
            15,139





Future
Development Costs





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





Total
Proved
            
            
            Total Proved Plus
      ProbableEstimated
    Using
            
            
            Estimated
    Using(M$)
            
            Forecast Prices and
      Costs
            
            
            Forecast Prices and
      CostsCanada2008
            
            
            14,462
            
            
            
            27,7892009
            
            
            27,886
            
            
            
            57,6502010
            
            
            7,036
            
            
            
            25,2532011
            
            
            10,217
            
            
            
            12,4102012
            
            
            8,359
            
            
            
            10,977Remainder
            
            
            26,742
            
            
            
            33,872Total for all years
      undiscounted
            
            
            94,702
            
            
            
            167,951France2008
            
            
            23,651
            
            
            
            37,4712009
            
            
            30,371
            
            
            
            107,5462010
            
            
            8,735
            
            
            
            43,1422011
            
            
            6,522
            
            
            
            12,2132012
            
            
            6,934
            
            
            
            7,001Remainder
            
            
            29,543
            
            
            
            29,824Total for all years
      undiscounted
            
            
            105,756
            
            
            
            237,197Netherlands2008
            
            
            3,653
            
            
            
            5,0152009
            
            
            1,900
            
            
            
            10,6062010
            
            
            781
            
            
            
            7812011
            
            
            6,929
            
            
            
            6,9292012
            
            
            824
            
            
            
            824Remainder
            
            
            18,866
            
            
            
            20,094Total for all years
      undiscounted
            
            
            32,953
            
            
            
            44,249Australia2008
            
            
            6,153
            
            
            
            6,1532009
            
            
            6,120
            
            
            
            11,9852010
            
            
            6,242
            
            
            
            6,2422011
            
            
            6,367
            
            
            
            6,3672012
            
            
            10,824
            
            
            
            10,824Remainder
            
            
            27,116
            
            
            
            47,441Total for all years
      undiscounted
            
            
            62,822
            
            
            
            89,012








2007
      Annual Information Form – Vermilion Energy Trust
                16













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




Oil
and Gas Properties and Wells





The
following table sets forth the number of wells in which Vermilion held a working
interest as at December 31, 2007:





Oil
            
            
            Natural GasGross(1)
            
            
            Net(2)
            
            
            Gross(1)
            
            
            Net(2)Wells
            
            
            Wells
            
            
            Wells
            
            
            WellsCanadaProducing
            
            
            343
            
            
            
            217
            
            
            
            455
            
            
            
            287Non-producing
            
            
            85
            
            
            
            56
            
            
            
            113
            
            
            
            74FranceProducing
            
            
            212
            
            
            
            187
            
            
            
            -
            
            
            
            -Non-producing
            
            
            157
            
            
            
            126
            
            
            
            -
            
            
            
            -NetherlandsProducing
            
            
            -
            
            
            
            -
            
            
            
            58
            
            
            
            46Non-producing
            
            
            -
            
            
            
            -
            
            
            
            10
            
            
            
            6AustraliaProducing
            
            
            16
            
            
            
            16
            
            
            
            -
            
            
            
            -Non-producing
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Total
    Producing
            
            
            571
            
            
            
            420
            
            
            
            513
            
            
            
            333Total
      Non-producing
            
            
            242
            
            
            
            182
            
            
            
            123
            
            
            
            80





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.





Costs
Incurred




The
following table summarizes the capital expenditures made by Vermilion on oil and
natural gas properties for the year ended December 31, 2007:




(M$)
            
            Property AcquisitionCosts
            
            
            Exploration
      Costs
            
            
            Development
      CostsProved
            
            
            UnprovedProperties
            
            
            PropertiesCanada
            
            
            734
            
            
            
            -
            
            
            
            -
            
            
            
            68,979France
            
            
            2,680
            
            
            
            -
            
            
            
            29,000
            
            
            
            41,824Netherlands
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            22,275Australia
            
            
            126,191
            
            
            
            -
            
            
            
            -
            
            
            
            13,561Total
            
            
            129,605
            
            
            
            -
            
            
            
            29,000
            
            
            
            146,639











2007
      Annual Information Form – Vermilion Energy Trust
                17








Exploration
and Development Activities




The
following table sets forth the number of development and exploration wells which
Vermilion completed during its 2007 financial year:




Exploration
      Wells
            
            
            Development
      WellsGross(1)
            
            
            Net(2)
            
            
            Gross(1)
            
            
            Net(2)CanadaOil
      Wells
            
            
            -
            
            
            
            -
            
            
            
            3.0
            
            
            
            2.4Gas
      Wells
            
            
            -
            
            
            
            -
            
            
            
            29.0
            
            
            
            22.1Standing
            
            
            -
            
            
            
            -
            
            
            
            13.0
            
            
            
            4.6Dry
      Holes
            
            
            -
            
            
            
            -
            
            
            
            6.0
            
            
            
            6.0Total Completed
      Wells
            
            
            -
            
            
            
            -
            
            
            
            51.0
            
            
            
            35.1FranceOil
      Wells
            
            
            -
            
            
            
            -
            
            
            
            3.0
            
            
            
            2.2Gas
      Wells
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Standing
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Dry
      Holes
            
            
            1.0
            
            
            
            0.5
            
            
            
            -
            
            
            
            -Total Completed
      Wells
            
            
            1.0
            
            
            
            0.5
            
            
            
            3.0
            
            
            
            2.2NetherlandsOil
      Wells
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Gas
      Wells
            
            
            -
            
            
            
            -
            
            
            
            3.0
            
            
            
            2.4Standing
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Dry
      Holes
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Total Completed
      Wells
            
            
            -
            
            
            
            -
            
            
            
            3.0
            
            
            
            2.4AustraliaOil
      Wells
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Gas
      Wells
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Standing
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Dry
      Holes
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Total Completed
      Wells
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Total
    VermilionOil
      Wells
            
            
            -
            
            
            
            -
            
            
            
            6.0
            
            
            
            4.6Gas
      Wells
            
            
            -
            
            
            
            -
            
            
            
            32.0
            
            
            
            24.5Standing
            
            
            -
            
            
            
            -
            
            
            
            13.0
            
            
            
            4.6Dry
      Holes
            
            
            1.0
            
            
            
            0.5
            
            
            
            6.0
            
            
            
            6.0Total Completed
      Wells
            
            
            1.0
            
            
            
            0.5
            
            
            
            57.0
            
            
            
            39.7





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.





Vermilion
has initially budgeted $182 million for its 2008 capital program in Canada,
France, the Netherlands and Australia.  The funds will be used to
drill wells to develop reserves in its Canadian key areas of Drayton Valley,
Slave Lake, Central Alberta, and in France, the Netherlands and
Australia.  A portion of the capital will be allocated to workovers,
production optimization, and maintenance capital in each country.




2007
      Annual Information Form – Vermilion Energy Trust
                18








Properties
with No Attributed Reserves





The
following table sets out Vermilion's undeveloped land as at December 31,
2007:





Undeveloped
      LandCountry
            
            Gross Acres(1)
            
            
            Net Acres(2)Canada
            
            
            234,089
            
            
            
            152,548France
            
            
            684,408
            
            
            
            375,222Netherlands
            
            
            208,808
            
            
            
            121,872Australia
            
            
            -
            
            
            
            -Total
            
            
            1,127,305
            
            
            
            649,642





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 36,800 net
acres in Canada and 48,925 net acres in France to expire within one
year.  In the Netherlands and Australia, no rights expire within one
year.





Abandonment
and Reclamation Costs





Vermilion
has estimated its abandonment costs by determining amounts for facility
decommissioning and reclamation costs (including salvage) by area in Canada,
France, the Netherlands and Australia.  As well, Vermilion has
determined abandonment costs (including salvage) and reclamation costs per well,
by area and applied this amount to its net wells in each of the
countries.


The
number of net wells to be abandoned is 634 in Canada, 313 in France, 52 in the
Netherlands and 16 in Australia.





The
total amount of costs, net of salvage, as estimated in the GLJ Report, is set
forth in the following table:




Country
            
            Undiscounted
              (M$)
            
            
            Discounted 10%
      (M$)Canada
            
            
            32,887
            
            
            
            11,101France
            
            
            51,801
            
            
            
            11,081Netherlands
            
            
            10,732
            
            
            
            5,606Australia
            
            
            27,939
            
            
            
            7,245Total
            
            
            123,359
            
            
            
            35,033





In
estimating the future net revenue, it is important to note that future costs
associated with abandonment of surface facilities, well site reclamation,
pipeline abandonments and reclamation costs are estimated by management of the
Trust as:




Country
            
            Facilities Undiscounted
              (M$)
            
            
            Discounted 10%
      (M$)Canada
            
            
            13,060
            
            
            
            2,583France
            
            
            124,650
            
            
            
            30,280Netherlands
            
            
            90,115
            
            
            
            41,238Australia
            
            
            49,874
            
            
            
            9,981Total
            
            
            277,699
            
            
            
            84,082





In the
next three years, as estimated in the GLJ Report, Vermilion expects to pay
abandonment and reclamation costs of:




Country
            
            Undiscounted
              (M$)
            
            
            Discounted 10%
      (M$)Canada
            
            
            3,655
            
            
            
            3,156France
            
            
            2,619
            
            
            
            2,315Netherlands
            
            
            618
            
            
            
            503Australia
            
            
            -
            
            
            
            -Total
            
            
            6,892
            
            
            
            5,974





Vermilion
has set aside a reclamation fund to help cover these future costs which amounted
to $57.9 million as at December 31, 2007. Vermilion anticipates making quarterly
contributions to that fund based on the estimated level necessary to fund future
obligations.  This estimate is reviewed regularly and adjusted as
determined necessary.  In addition to quarterly contributions,
Vermilion contributes one-time payments to the fund as its cash resources permit
and as are considered appropriate.




2007
      Annual Information Form – Vermilion Energy Trust
                19








Tax
Horizon





Income
tax laws and administrative policies regarding mutual fund trusts may be changed
in a manner which adversely affects the Trust and/or the
Unitholders.





On June
22, 2007, legislation was passed to implement proposals originally announced on
October 31, 2006 relating to the taxation of certain distributions from certain
"specified investment flow-through" ("SIFT") trusts and SIFT partnerships (the
"SIFT Rules").  The SIFT Rules impose a tax at the trust level on
distributions of certain income from SIFT trusts (which could include the Trust)
and partnerships at a rate of tax comparable to the combined federal and
provincial corporate tax and to treat such distributions as dividends to the
Unitholder.  Existing SIFT trusts will have a four-year transition
period, and subject to the qualifications below, will not be subject to the SIFT
Rules until January 1, 2011.  The implementation of SIFT Rules will
result in adverse tax consequences to the Trust and certain Unitholders
(including most particularly Unitholders that are tax deferred plans and
non-residents of Canada) and impact cash distributions from the
Trust.





Pursuant
to the SIFT Rules, commencing January 1, 2011 (provided the Trust only
experiences "normal growth" and no "undue expansion" before then) certain
distributions from the Trust which would have otherwise have been taxed as
ordinary income generally will be characterized as dividends in addition to
being subject to tax at corporate rates at the Trust level.  Returns
of capital generally are (and under the SIFT Rules will continue to be)
tax-deferred for Unitholders who are resident in Canada for purposes of the Tax
Act (and reduce such Unitholder's adjusted cost base in the Trust Unit for
purposes of the Tax Act).  Distributions to a Unitholder who is not
resident in Canada for purposes of the Tax Act, or that is a partnership that is
not a "Canadian partnership" for purposes of the Tax Act, generally will be
subject to Canadian withholding tax.





The
SIFT Rules provide for a four year transition period for SIFTs in existence on
October 31, 2006 provided that there is only "normal growth" of a SIFT during
the transition period and no "undue expansion".  As a result, the
adverse tax consequences associated with the SIFT Rules could be realized by the
Trust sooner than January 1, 2011.  "Normal growth" would include
equity growth within certain "safe harbour" limits, measured by reference to a
SIFT trust's market capitalization as of the end of trading on October 31, 2006
(which would include the SIFT's issued and outstanding publicly traded trust
units and not any convertible debt, options or other interests convertible into
or exchangeable for trust units).  Those safe harbour limits are 40%
for the period from November 1, 2006 to December 31, 2007, and 20% for each
calendar 2008, 2009 and 2010.  Moreover, these limits are cumulative,
so that any unused limit for a period carries over into the subsequent
period.  Additional details of the “normal growth” guidelines include
the following:





(a)
            new
      equity for these purposes includes units and debt that is convertible into
      units (and may include other substitutes for equity if attempts are made
      to develop such substitutes);





(b)
            replacing
      debt that was outstanding as of October 31, 2006 with new equity, whether
      by a conversion into trust units of convertible debentures or otherwise,
      will not be considered growth for these purposes and will therefore not
      affect the safe harbour limits; and





(c)
            the
      exchange for trust units, of exchangeable shares that were outstanding on
      October 31, 2006 will not be considered growth for those purposes and will
      therefore not affect the safe harbour where the issuance of the trust
      units is made in satisfaction of the exercise of the exchange right by a
      person other than the SIFT.





The
Trust's market capitalization as of the close of trading on October 31, 2006,
having regard only to its issued and outstanding publicly-traded Trust Units,
was approximately $2,375 million, which means the Trust's "safe harbour" equity
growth amount for the period ending December 31, 2007 is approximately $950
million and for each of calendar 2008, 2009 and 2010 is an additional
approximately $475 million (in any case, not including equity, including
convertible debentures, issued to replace debt that was outstanding on October
31, 2006).





2007
      Annual Information Form – Vermilion Energy Trust
                20








While
these guidelines are such that it is unlikely they would affect the Trust's
ability to raise the capital required to maintain and grow its existing
operations in the ordinary course during the transition period, they could
adversely affect the cost of raising capital and the Trust's ability to
undertake more significant acquisitions.





In
France, the Trust is currently subject to a 35% corporate tax rate after
eligible deductions.  In the Netherlands, the Trust is currently
subject to an approximate 41% corporate tax rate after eligible
deductions.  In Australia, the Trust is currently subject to an
approximate 30% corporate tax rate after eligible deductions.




Production
Estimates





The
following table sets forth the volume of production estimated for the first year
as reflected in the estimates of gross proved reserves and gross proved plus
probable reserves:





Light and Medium
      Oil
            
            
            Natural
              Gas
            
            
            Natural Gas
              Liquids
            
            
            BOE(Mbbls)
            
            
            (Mmcf)
            
            
            (Mbbls)
            
            
            (Mboe)CanadaProved
            
            
            822
            
            
            
            15,678
            
            
            
            470
            
            
            
            3,905Proved Plus
      Probable
            
            
            835
            
            
            
            17,420
            
            
            
            526
            
            
            
            4,264FranceProved
            
            
            3,034
            
            
            
            332
            
            
            
            -
            
            
            
            3,089Proved Plus
      Probable
            
            
            3,203
            
            
            
            346
            
            
            
            -
            
            
            
            3,260NetherlandsProved
            
            
            -
            
            
            
            8,811
            
            
            
            10
            
            
            
            1,478Proved Plus
      Probable
            
            
            -
            
            
            
            10,281
            
            
            
            11
            
            
            
            1,725AustraliaProved
            
            
            2,377
            
            
            
            -
            
            
            
            -
            
            
            
            2,377Proved Plus
      Probable
            
            
            2,407
            
            
            
            -
            
            
            
            -
            
            
            
            2,407Total
Proved
            
            
            6,233
            
            
            
            24,821
            
            
            
            479
            
            
            
            10,849Total Proved Plus
      Probable
            
            
            6,445
            
            
            
            28,046
            
            
            
            537
            
            
            
            11,656





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:




2007
      Annual Information Form – Vermilion Energy Trust
                21











Three Months
      Ended
            
            
            Three Months
      Ended
            
            
            Three Months
      Ended
            
            
            Three Months
      EndedMarch 31,
              2007
            
            
            June 30,
              2007
            
            
            September 30,
              2007
            
            
            December 31,
              2007CanadaAverage Daily
      ProductionLight and
      Medium Oil (Bbl/d)
            
            
            2,812
            
            
            
            2,701
            
            
            
            2,463
            
            
            
            2,582Natural Gas
      (Mmcf/d)
            
            
            47.70
            
            
            
            49.56
            
            
            
            45.61
            
            
            
            48.12Natural Gas
      Liquids (Bbl/d)
            
            
            1,292
            
            
            
            1,390
            
            
            
            1,621
            
            
            
            1,465Average Net
      Prices ReceivedLight and
      Medium Oil ($/Bbl)
            
            
            69.49
            
            
            
            72.66
            
            
            
            80.74
            
            
            
            84.48Natural Gas
      ($/Mcf)
            
            
            7.47
            
            
            
            7.46
            
            
            
            5.82
            
            
            
            6.70Natural Gas
      Liquids ($/Bbl)
            
            
            53.31
            
            
            
            58.62
            
            
            
            63.27
            
            
            
            68.82RoyaltiesLight and
      Medium Oil ($/Bbl)
            
            
            9.29
            
            
            
            10.62
            
            
            
            10.00
            
            
            
            11.30Natural Gas
      ($/Mcf)
            
            
            1.58
            
            
            
            1.46
            
            
            
            1.01
            
            
            
            1.34Natural Gas
      Liquids ($/Bbl)
            
            
            17.15
            
            
            
            16.87
            
            
            
            19.03
            
            
            
            22.14TransportationLight and
      Medium Oil ($/Bbl)
            
            
            0.55
            
            
            
            (0.03
            )
            
            
            (0.02
            )
            
            
            0.44Natural Gas
      ($/Mcf)
            
            
            0.08
            
            
            
            0.16
            
            
            
            0.15
            
            
            
            0.15Natural Gas
      Liquids ($/Bbl)
            
            
            2.11
            
            
            
            (0.04
            )
            
            
            (0.60
            )
            
            
            0.76Production
      CostsLight and
      Medium Oil ($/Bbl)
            
            
            11.16
            
            
            
            10.60
            
            
            
            14.27
            
            
            
            13.91Natural Gas
      ($/Mcf)
            
            
            1.25
            
            
            
            1.10
            
            
            
            1.69
            
            
            
            1.45Natural Gas
      Liquids ($/Bbl)
            
            
            6.01
            
            
            
            5.10
            
            
            
            5.37
            
            
            
            6.07Netback
      ReceivedLight and
      Medium Oil ($/Bbl)
            
            
            48.49
            
            
            
            51.47
            
            
            
            56.49
            
            
            
            58.83Natural Gas
      ($/Mcf)
            
            
            4.56
            
            
            
            4.74
            
            
            
            2.97
            
            
            
            3.76Natural Gas
      Liquids ($/Bbl)
            
            
            28.04
            
            
            
            36.69
            
            
            
            39.47
            
            
            
            39.85FranceAverage Daily
      ProductionLight and
      Medium Oil (Bbl/d)
            
            
            7,890
            
            
            
            9,001
            
            
            
            8,804
            
            
            
            8,776Natural Gas
      (Mmcf/d)
            
            
            0.99
            
            
            
            1.32
            
            
            
            1.19
            
            
            
            1.02Natural Gas
      Liquids (Bbl/d)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Average Net
      Prices ReceivedLight and
      Medium Oil ($/Bbl)
            
            
            64.72
            
            
            
            75.76
            
            
            
            75.36
            
            
            
            80.65Natural Gas
      ($/Mcf)
            
            
            7.52
            
            
            
            7.05
            
            
            
            7.22
            
            
            
            8.75Natural Gas
      Liquids ($/Bbl)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -RoyaltiesLight and
      Medium Oil ($/Bbl)
            
            
            5.04
            
            
            
            4.96
            
            
            
            5.06
            
            
            
            4.87Natural Gas
      ($/Mcf)
            
            
            0.27
            
            
            
            0.17
            
            
            
            0.29
            
            
            
            0.27Natural Gas
      Liquids ($/Bbl)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -TransportationLight and
      Medium Oil ($/Bbl)
            
            
            4.77
            
            
            
            7.02
            
            
            
            7.13
            
            
            
            6.36Natural Gas
      ($/Mcf)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Natural Gas
      Liquids ($/Bbl)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Production
      CostsLight and
      Medium Oil ($/Bbl)
            
            
            9.00
            
            
            
            8.98
            
            
            
            7.87
            
            
            
            9.75Natural Gas
      ($/Mcf)
            
            
            3.29
            
            
            
            3.47
            
            
            
            4.12
            
            
            
            4.90Natural Gas
      Liquids ($/Bbl)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Netback
      ReceivedLight and
      Medium Oil ($/Bbl)
            
            
            45.91
            
            
            
            54.80
            
            
            
            55.30
            
            
            
            59.67Natural Gas
      ($/Mcf)
            
            
            3.96
            
            
            
            3.41
            
            
            
            2.81
            
            
            
            3.58Natural Gas
      Liquids ($/Bbl)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -NetherlandsAverage Daily
      ProductionLight and
      Medium Oil (Bbl/d)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Natural Gas
      (Mmcf/d)
            
            
            28.02
            
            
            
            23.23
            
            
            
            27.04
            
            
            
            26.68Natural Gas
      Liquids (Bbl/d)
            
            
            84
            
            
            
            32
            
            
            
            22
            
            
            
            21Average Net
      Prices ReceivedLight and
      Medium Oil ($/Bbl)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Natural Gas
      ($/Mcf)
            
            
            8.25
            
            
            
            7.19
            
            
            
            7.29
            
            
            
            9.03Natural Gas
      Liquids ($/Bbl)
            
            
            70.84
            
            
            
            73.14
            
            
            
            77.48
            
            
            
            83.84RoyaltiesLight and
      Medium Oil ($/Bbl)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Natural Gas
      ($/Mcf)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Natural Gas
      Liquids ($/Bbl)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Production
      CostsLight and
      Medium Oil ($/Bbl)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Natural Gas
      ($/Mcf)
            
            
            2.02
            
            
            
            1.98
            
            
            
            1.95
            
            
            
            1.99Natural Gas
      Liquids ($/Bbl)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Netback
      ReceivedLight and
      Medium Oil ($/Bbl)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Natural Gas
      ($/Mcf)
            
            
            6.23
            
            
            
            5.21
            
            
            
            5.34
            
            
            
            7.04Natural Gas
      Liquids ($/Bbl)
            
            
            70.84
            
            
            
            73.14
            
            
            
            77.48
            
            
            
            83.84








2007
      Annual Information Form – Vermilion Energy Trust
                22











Three Months
      Ended
            
            
            Three Months
      Ended
            
            
            Three Months
      Ended
            
            
            Three Months
      EndedMarch 31,
              2007
            
            
            June 30,
              2007
            
            
            September 30,
              2007
            
            
            December 31,
              2007AustraliaAverage Daily
      ProductionLight and
      Medium Oil (Bbl/d)
            
            
            4,227
            
            
            
            5,440
            
            
            
            6,955
            
            
            
            7,591Natural Gas
      (Mmcf/d)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Natural Gas
      Liquids (Bbl/d)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Average Net
      Prices ReceivedLight and
      Medium Oil ($/Bbl)
            
            
            67.87
            
            
            
            55.20
            
            
            
            87.05
            
            
            
            78.85Natural Gas
      ($/Mcf)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Natural Gas
      Liquids ($/Bbl)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -RoyaltiesLight and
      Medium Oil ($/Bbl)
            
            
            7.77
            
            
            
            10.44
            
            
            
            26.02
            
            
            
            19.51Natural Gas
      ($/Mcf)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Natural Gas
      Liquids ($/Bbl)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -TransportationLight and
      Medium Oil ($/Bbl)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Natural Gas
      ($/Mcf)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Natural Gas
      Liquids ($/Bbl)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Production
      CostsLight and
      Medium Oil ($/Bbl)
            
            
            14.76
            
            
            
            13.84
            
            
            
            11.15
            
            
            
            13.74Natural Gas
      ($/Mcf)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Natural Gas
      Liquids ($/Bbl)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Netback
      ReceivedLight and
      Medium Oil ($/Bbl)
            
            
            45.34
            
            
            
            30.92
            
            
            
            49.88
            
            
            
            45.60Natural Gas
      ($/Mcf)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Natural Gas
      Liquids ($/Bbl)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -





Marketing




Vermilion
is party to certain derivative financial instruments, such as crude oil, natural
gas and power contracts.  Vermilion has entered into these contracts
for economic hedging purposes only in order to protect its cash flow on future
sales from the potential adverse impact of fluctuations in oil, gas and power
prices.  The contracts reduce the fluctuations in sales revenues and
power costs by establishing fixed prices or a trading range on a portion of its
oil and gas sales and power costs.  All of the economic hedges below
are arranged with counter parties representing major financial (banking)
institutions with AA to AAA credit ratings thereby reducing counter party credit
risk exposure.




Contracts outstanding in respect of economic hedging transactions
are as follows:




Risk Management:
      Oil
            Funded Cost
            bbls/d
            US$/bblCollar –
WTIQ1
      2008
            US$0.50/bbl
            500
            $63.00 -
    $79.05Q2
      2008
            US$0.50/bbl
            500
            $64.30 -
    $76.00Q3
      2008
            US$0.28/bbl
            250
            $70.00 -
    $90.00Q4
      2008
            US$0.50/bbl
            250
            $69.00 -
    $90.00Collar -
    BRENTQ1
      2008
            US$0.25/bbl
            500
            $68.42 -
    $83.00Q1
      2008
            US$0.25/bbl
            500
            $69.25 -
    $82.00Q2
      2008
            US$0.50/bbl
            500
            $64.00 -
    $80.10Q2
      2008
            US$0.25/bbl
            500
            $67.20 -
    $82.00Q3
      2008
            US$0.25/bbl
            500
            $66.40 -
    $82.00Q3
      2008
            US$0.25/bbl
            500
            $66.60 -
    $82.00Q3
      2008
            US$0.19/bbl
            250
            $65.00 -
    $90.00Q4
      2008
            -
            500
            $68.20 -
    $81.00Call Spread -
      BRENT2009 -
      2011
            US$5.73/bbl
            700
            $65.00 -
    $85.00








2007
      Annual Information Form – Vermilion Energy Trust
                23





ADDITIONAL
INFORMATION RESPECTING VERMILION ENERGY TRUST





Trust
Units





An
unlimited number of Trust Units may be created and issued pursuant to the Trust
Indenture.  Each Trust Unit shall entitle the holder thereof to one
vote at any meeting of the holders of Trust Units and represents an equal
fractional undivided beneficial interest in any distribution from the Trust
(whether of net income, net realized capital gains or other amounts) and in any
net assets of the Trust in the event of termination or winding-up of the
Trust.  All Trust Units outstanding from time to time shall be
entitled to equal shares of any distributions by the Trust, and in the event of
termination or winding-up of the Trust, in any net assets of the
Trust.  All Trust Units shall rank among themselves equally and
rateably without discrimination, preference or priority.  Each Trust
Unit is transferable, subject to compliance with applicable Canadian securities
laws, is not subject to any conversion or pre-emptive rights and entitles the
holder thereof to require the Trust to redeem any or all of the Trust Units held
by such holder (see "Redemption Right") and to one vote at all meetings of
Unitholders for each Trust Unit held.





The
Trust Units do not represent a traditional investment and should not be viewed
by investors as "shares" in either Vermilion or the Trust.  As holders
of Trust Units in the Trust, the Unitholders will not have the statutory rights
normally associated with ownership of shares of a corporation including, for
example, the right to bring "oppression" or "derivative" actions.  The
price per Trust Unit will be a function of anticipated distributable income from
Vermilion and the ability of Vermilion to effect long term growth in the value
of the Trust.  The market price of the Trust Units will be sensitive
to a variety of market conditions including, but not limited to, interest rates,
commodity prices and the ability of the Trust to acquire additional
assets.  Changes in market conditions may adversely affect the trading
price of the Trust Units.





Special
Voting Rights





In
order to allow the Trust flexibility in pursuing corporate acquisitions, the
Trust Indenture allows for the creation of Special Voting Rights which will
enable the Trust to provide voting rights to holders of Exchangeable Shares and,
in the future, to holders of other exchangeable shares that may be issued by
Vermilion or other subsidiaries of the Trust in connection with other
exchangeable share transactions.





An
unlimited number of Special Voting Rights may be created and issued pursuant to
the Trust Indenture.  Holders of Special Voting Rights shall not be
entitled to any distributions of any nature whatsoever from the Trust and shall
be entitled to attend at meetings of Unitholders and to such number of votes at
meetings of Unitholders as may be prescribed by the board of directors of
Vermilion in the resolution authorizing the issuance of any Special Voting
Rights.  Except for the right to attend and vote at meetings of the
Unitholders, the Special Voting Rights shall not confer upon the holders thereof
any other rights.





Under
the terms of the Voting and Exchange Trust Agreement, the Trust has issued a
Special Voting Right to the Voting and Exchange Trust Agreement Trustee for the
benefit of every Person who holds Exchangeable Shares.





Unitholders'
Limited Liability





The
Trust Indenture provides that no Unitholder, in its capacity as such, shall
incur or be subject to any liability in contract or in tort in connection with
the Trust or its obligations or affairs and, in the event that a court
determines Unitholders are subject to any such liabilities, the liabilities will
be enforceable only against, and will be satisfied only out of the Trust's
assets.  Pursuant to the Trust Indenture, the Trust will indemnify and
hold harmless each Unitholder from any cost, damages, liabilities, expenses,
charges or losses suffered by a Unitholder from or arising as a result of such
Unitholder not having such limited liability.





The
Trust Indenture provides that all contracts signed by or on behalf of the Trust
must contain a provision to the effect that such obligation will not be binding
upon Unitholders personally.  Notwithstanding the terms of the Trust
Indenture, Unitholders may not be protected from liabilities of the Trust to the
same extent a shareholder is protected from the liabilities of a
corporation.  Personal liability may also arise in respect of claims
against the Trust (to the extent that claims are not satisfied by the Trust)
that do not arise under contracts, including claims in tort, claims for taxes
and possibly certain other statutory liabilities.  The possibility of
any personal liability to Unitholders of this nature arising is considered
unlikely in view of the fact that the sole activity of the Trust is to hold
securities, and all of the business operations are carried on by Vermilion,
directly or indirectly.





The
activities of the Trust and its subsidiary, Vermilion, will be conducted, upon
the advice of counsel, in such a way and in such jurisdictions as to avoid as
far as possible any material risk of liability to the Unitholders for claims
against the Trust including by obtaining appropriate insurance, where available,
for the operations of Vermilion and having contracts signed by or on behalf of
the Trust include a provision that such obligations are not binding upon
Unitholders personally.


2007
      Annual Information Form – Vermilion Energy Trust
                24











The
Income Trusts Liability
Act (Alberta) creates a statutory limitation on the liability of
unitholders of Alberta income trusts such as the Trust.  The Act
provides that a Unitholder will not be, as a beneficiary, liable for any act,
default, obligation or liability of the trustee that arises after the
legislation comes into effect.





Issuance
of Trust Units





The
Trust Indenture provides that Trust Units, including rights, warrants and other
securities to purchase, to convert into or to exchange into Trust Units, may be
created, issued, sold and delivered on such terms and conditions and at such
times as the Trustee, upon the recommendation of the board of directors of
Vermilion may determine.  The Indenture also provides that Vermilion
may authorize the creation and issuance of debentures, notes and other evidences
of indebtedness of the Trust which debentures, notes or other evidences of
indebtedness may be created and issued from time to time on such terms and
conditions to such persons and for such consideration as Vermilion may
determine.





Cash
Distributions





The
Trustee may declare payable to the Unitholders all or any part of the net income
of the Trust earned from interest income on the Notes, from the income generated
under the Royalty Agreement and from any dividends paid on the common shares of
Vermilion, less all expenses and liabilities of the Trust due and accrued and
which are chargeable to the net income of the Trust.  In addition,
Unitholders may, at the discretion of the board of directors of Vermilion,
receive distributions in respect of prepayments of principal on the Notes made
by Vermilion to the Trust before the maturity of the Notes.  It is
anticipated however, that the Trust may reinvest a portion of the repayments of
principal on the Notes to make capital expenditures to develop the business of
Vermilion with a view to enhancing Vermilion's cash flow from
operations.





Cash
distributions will be made on the 15th day of each month to Unitholders of
record on the immediately preceding Distribution Record Date.





Record of Cash
Distributions





The
following table sets forth the amount of monthly cash distributions per Trust
Unit declared by the Trust since the completion of the Arrangement on January
22, 2003.  Distributions 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.  Starting with the January 15, 2008 payment date,
Vermilion increased the distribution amount to $0.19 per Trust Unit per
month.





Period
            
            Distribution Amount for Period per
      Trust Unit2003 – January 22 to December
      31
            
            $
            1.872004 – January to
      December
            
            $
            2.042005 – January to
      December
            
            $
            2.042006 – January to
      December
            
            $
            2.042007 – January to
      December
            
            $
            2.062008 – January to
      March
            
            $
            0.57Total cash distributions since
      January 22, 2003(1)
            
            $
            10.62





Note:


(1)
            On
      March 14, 2008 the Trust announced that it would pay a cash distribution
      of $0.19 per Trust Unit to Unitholders of record as of March 31, 2008 on
      April 15, 2008.  The total cash distribution since January 22,
      2003 does not include the April distribution of
  $0.19.





Redemption
Right





Trust
Units are redeemable at any time on demand by the holders thereof upon delivery
to the Trust of the certificate or certificates representing such Trust Units,
accompanied by a duly completed and properly executed notice requiring
redemption.  Upon receipt of the notice to redeem Trust Units by the
Trust, the holder thereof shall only be entitled to receive a price per Trust
Unit (the "Market Redemption Price") equal to the lesser of: (a) 90% of the
"market price" (as defined in the Trust Indenture) of the Trust Units on the
principal market on which the Trust Units are quoted for trading during the 10
trading day period commencing immediately after the date on which the Trust
Units are tendered to the Trust for redemption; and (b) the closing market
price on the principal market on which the Trust Units are quoted for trading on
the date that the Trust Units are so tendered for redemption.





2007
      Annual Information Form – Vermilion Energy Trust
                25








The
aggregate Market Redemption Price payable by the Trust in respect of any Trust
Units surrendered for redemption during any calendar month shall be satisfied by
way of a cash payment on the last day of the following month.  In
certain circumstances, the aggregate Market Redemption Price payable by the
Trust may be satisfied by distributing notes having an aggregate principal
amount equal to the aggregate Market Redemption Price of the Trust Units
tendered for redemption.





It is
anticipated that this redemption right will not be the primary mechanism for
holders of Trust Units to dispose of their Trust Units.  Notes which
may be distributed in specie to holders of Trust Units in connection with a
redemption will not be listed on any stock exchange and no market is expected to
develop in such notes.





Non-Resident
Unitholders





It is
in the best interest of Unitholders that the Trust qualifies as a "unit trust"
and a "mutual fund trust" under the Tax Act.  Certain provisions of
the Tax Act require that the Trust not be established nor maintained primarily
for the benefit of Non-Residents.  Accordingly, in order to comply
with such provisions, the Trust Indenture contains restrictions on the ownership
of Trust Units by Unitholders who are Non-Residents.  In this regard,
the Trust shall, among other things, take all necessary steps to monitor the
ownership of the Trust Units to carry out such intentions.  If at any
time the Trust becomes aware that the beneficial owners of 50% or more of the
Trust Units then outstanding are or may be Non-Residents or that such a
situation is imminent, the Trust shall take such action as may be necessary to
carry out such intentions.





Meetings
of Unitholders





The
Trust Indenture provides that meetings of Unitholders must be called and held
for, among other matters, the election or removal of the Trustee, the
appointment or removal of the auditors of the Trust, the approval of amendments
to the Trust Indenture (except as described under "Amendments to the Trust
Indenture"), the sale of the property of the Trust as an entirety or
substantially as an entirety, and the commencement of winding-up the affairs of
the Trust.  Meetings of Unitholders will be called and held annually
for, among other things, the election of the directors of Vermilion and the
appointment of the auditors of the Trust.





A
meeting of Unitholders may be convened at any time and for any purpose by the
Trustee and must be convened, except in certain circumstances, if requisitioned
by the holders of not less than 5% of the Trust Units then outstanding by a
written requisition.  A requisition must, among other things, state in
reasonable detail the business purpose for which the meeting is to be
called.





Unitholders
may attend and vote at all meetings of Unitholders either in person or by proxy
and a proxyholder need not be a Unitholder.  Two persons present in
person or represented by proxy and representing in the aggregate at least 5% of
the votes attaching to all outstanding Trust Units shall constitute a quorum for
the transaction of business at all such meetings.  For the purposes of
determining such quorum, the holders of any issued Special Voting Rights who are
present at the meeting shall be regarded as representing outstanding Trust Units
equivalent in number to the votes attaching to such Special Voting
Rights.





The
Trust Indenture contains provisions as to the notice required and other
procedures with respect to the calling and holding of meetings of Unitholders in
accordance with the requirements of applicable laws.





Trustee





Computershare
Trust Company of Canada is the trustee of the Trust.  The Trustee is
responsible for, among other things, accepting subscriptions for Trust Units and
issuing Trust Units pursuant thereto and maintaining the books and records of
the Trust and providing timely reports to holders of Trust Units.  The
Trust Indenture provides that the Trustee shall exercise its powers and carry
out its functions thereunder as Trustee honestly, in good faith and in the best
interests of the Trust and, in connection therewith, shall exercise that degree
of care, diligence and skill that a reasonably prudent trustee would exercise in
comparable circumstances.





The
term of the Trustee's appointment is until the annual meeting of Unitholders to
be held in 2009.  In 2009, the Unitholders shall, at the annual
meeting of the Unitholders, re-appoint, or appoint a successor to the Trustee
for an additional three year term, and thereafter, the Unitholders shall
reappoint or appoint a successor to the Trustee at the annual meeting of
Unitholders three years following the reappointment or appointment of the
successor to the Trustee.  The Trustee may also be removed by Special
Resolution of the Unitholders.  Such resignation or removal becomes
effective upon the acceptance or appointment of a successor
trustee.


2007
      Annual Information Form – Vermilion Energy Trust
                26








Delegation
of Authority, Administration and Trust Governance





The
board of directors of Vermilion has generally been delegated the significant
management decisions of the Trust.  In particular, the Trustee has
delegated to Vermilion responsibility for any and all matters relating to the
following: (a) an Offering; (b) ensuring compliance with all
applicable laws, including in relation to an Offering; (c) all matters
relating to the content of any Offering Documents, the accuracy of the
disclosure contained therein, and the certification thereof; (d) all
matters concerning the terms of, and amendment from time to time of the material
contracts of the Trust; (e) all matters concerning any underwriting or
agency agreement providing for the sale of Trust Units or rights to Trust Units;
(f) all matters relating to the redemption of Trust Units; (g) all
matters relating to the voting rights on any investments in the Trust Fund or
any Subsequent Investments; and (h) all matters relating to the specific
powers and authorities as set forth in the Trust Indenture.





Amendments
to the Trust Indenture





The
Trust Indenture may be amended or altered from time to time by Special
Resolution.





The
Trustee may, without the approval of any of the Unitholders, amend the Trust
Indenture for the purpose of:





(a)
            ensuring
      the Trust's continuing compliance with applicable laws or requirements of
      any governmental agency or authority of Canada or of any
      province;





(b)
            ensuring
      that the Trust will satisfy the provisions of each of
      subsections 108(2) and 132(6) of the Tax Act as from time to time
      amended or replaced;





(c)
            ensuring
      that such additional protection is provided for the interests of
      Unitholders as the Trustee may consider
  expedient;





(d)
            removing
      or curing any conflicts or inconsistencies between the provisions of the
      Trust Indenture or any supplemental indenture and any other agreement of
      the Trust or any offering document pursuant to which securities of the
      Trust are issued with respect to the Trust, or any applicable law or
      regulation of any jurisdiction, provided that in the opinion of the
      Trustee the rights of the Trustee and of the Unitholders are not
      prejudiced thereby; or





(e)
            curing,
      correcting or rectifying any ambiguities, defective or inconsistent
      provisions, errors, mistakes or omissions, provided that in the opinion of
      the Trustee the rights of the Trustee and of the Unitholders are not
      prejudiced thereby.





Takeover
Bid





The
Trust Indenture contains provisions to the effect that if a takeover bid is made
for the Trust Units and not less than 90% of the Trust Units (other than Trust
Units held at the date of the takeover bid by or on behalf of the offeror or
associates or affiliates of the offeror) are taken up and paid for by the
offeror, the offeror will be entitled to acquire the Trust Units held by
Unitholders who did not accept the takeover bid, on the terms offered by the
offeror.





Termination
of the Trust





The
Unitholders may vote to terminate the Trust at any meeting of the Unitholders
duly called for that purpose, subject to the following: (a) a vote may only
be held if requested in writing by the holders of not less than 20% of the
outstanding Trust Units; (b) a quorum of 50% of the issued and outstanding
Trust Units is present in person or by proxy; and (c) the termination must
be approved by Special Resolution of Unitholders.





Unless
the Trust is earlier terminated or extended by vote of the Unitholders, the
Trustee shall commence to wind up the affairs of the Trust on December 31,
2099.  In the event that the Trust is wound up, the Trustee will sell
and convert into money the property of the Trust in one transaction or in a
series of transactions at public or private sale and do all other acts
appropriate to liquidate the property of the Trust, and shall in all respects
act in accordance with the directions, if any, of the Unitholders in respect of
termination authorized pursuant to the Special Resolution authorizing the
termination of the Trust.  Notwithstanding anything herein contained,
in no event shall the Trust be wound up until the Royalty shall have been
disposed of, and under no circumstances shall any Unitholder come into any
possession of any interest in the Royalty.  After paying, retiring or
discharging or making provision for the payment, retirement or discharge of all
known liabilities and obligations of the Trust and providing for indemnity
against any other outstanding liabilities and obligations, the Trustee shall
distribute the remaining part of the proceeds of the sale of the assets together
with any cash forming part of the property of the Trust among the Unitholders in
accordance with their Pro Rata Share.


2007
      Annual Information Form – Vermilion Energy Trust
                27








Reporting
to Unitholders





The
financial statements of the Trust are audited annually by an independent
recognized firm of chartered accountants.  The audited financial
statements of the Trust, together with the report of such chartered accountants,
are mailed by the Trustee to Unitholders and the unaudited interim financial
statements of the Trust are mailed to Unitholders as prescribed by applicable
securities legislation.  The year-end of the Trust is
December 31.





The
Trust is subject to the continuous disclosure obligations under applicable
securities legislation.





Distribution
Reinvestment Plan





The
Trust has established the DRIP Plan.  The DRIP Plan is only available
to registered Unitholders who are residents of Canada.





Effective
April 10, 2008, the DRIP Plan will be amended to eliminate provisions permitting
optional Trust Unit purchases by participants.





Under
the DRIP Plan, registered Unitholders may, at their option, reinvest their cash
distributions to purchase additional Trust Units (the "DRIP Units") by directing
the Plan Agent (as defined below) to apply distributions on their existing Trust
Units to the purchase of DRIP Units.  Computershare Trust Company of
Canada in its capacity as plan agent (the "Plan Agent") will apply cash
distributions towards the purchase of DRIP Units from the Trust, subject to
certain limitations either from treasury or at the discretion of Vermilion
through the facilities of the TSX.  DRIP Units will be acquired either
at the average market price at which DRIP Units are acquired through the
facilities of the TSX or from treasury based on the weighted average of the
previous 10 days of trading prior to the applicable
distribution.  Participants in the DRIP Plan will also receive
additional distributions of Trust Units equal to 5% of the DRIP Units purchased
with their distributions.  Participants will not have to pay any
brokerage fees or service charges in connection with the purchase of DRIP
Units.





Registered
Unitholders may, after electing to participate in the DRIP Plan, terminate their
participation in the DRIP Plan by written notice to the Plan
Agent.  That notice, if actually received no later than
5 business days prior to a Distribution Record Date, will have effect for
the distribution to be made on the following Distribution Payment
Date.  Thereafter, distributions to those Unitholders will be in
cash.  The Trust may amend, suspend or terminate the DRIP Plan in its
sole discretion provided that any amendment to the DRIP Plan must be approved by
the TSX and that any amendment, modification or suspension shall have no
retroactive effect if it would prejudice the interests of
participants.  The Trust is not required to issue Trust Units into any
jurisdiction where that issuance would be illegal.





Unitholder
Rights Plan





The
Trust currently has in place a Unitholder rights plan (the "Rights Plan") that
came into effect on May 5, 2006.  The objectives of the Rights Plan
are to ensure, to the extent possible, that all Unitholders are treated equally
and fairly in connection with any takeover bid for the Trust. 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
Unitholders 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 the board of
directors believes is 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 Unitholder value;
and





(c)
            make
      reasoned recommendations to the
Unitholders.





2007
      Annual Information Form – Vermilion Energy Trust
                28








The
Rights Plan discourages discriminatory, coercive or unfair takeovers of the
Trust 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 Unitholder value in the event an
unsolicited takeover bid is made for all or a portion of the outstanding Trust
Units of the Trust.  As set forth in detail below, the Rights Plan
discourages coercive hostile takeover bids by creating the potential that any
Trust Units 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 Trust
Units who are not related to the bidder will be entitled to exercise rights
issued to them under the Rights Plan and to acquire Trust Units 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 Trust Units
of the Trust all Unitholders 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 Trust, to
secure the continuance of management or the directors in their respective
offices or to deter fair offers for the Trust Units of the Trust.





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 Unitholder Rights Plan Agreement.  A copy
of the Unitholder Rights Plan Agreement will be available in its entirety upon
request at the head office of Vermilion during normal business
hours.





Term





The
Rights Plan will remain in effect until termination of the annual meeting of
Unitholders of the Trust in 2009 unless the term of the Unitholder Rights Plan
Agreement is extended beyond such date by resolution of Unitholders at such
meeting.





Issue of
Rights





One
right (a "Right") has been issued by the Trust pursuant to the Unitholder Rights
Plan Agreement in respect of each Trust Unit of the Trust outstanding at the
close of business on May 5, 2006 (the "Record Time").  One Right will
also be issued for each additional Trust Unit issued after the Record Time and
prior to the earlier of the Separation Time (as defined below) or the Expiration
Time (as defined below).





Rights Exercise
Privilege





The
Rights will separate from the voting units 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 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").





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 Trust 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 Trust 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 Trust
Units 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 Trust Unit until the Rights separate from the underlying Trust
Units and become exercisable or until the exercise of the Rights.  The
issuance of the Rights will not change the manner in which Unitholders currently
trade their Trust Units.


2007
      Annual Information Form – Vermilion Energy Trust
                29











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 Unitholder whereby the
Unitholder agrees to deposit or tender voting 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
      Unitholder who has agreed to tender voting 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
      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
      share at which the Unitholder has agreed to deposit or tender voting
      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 shares offered to be
      purchased under the Lock-Up Bid is less than all of the voting units held
      by Unitholders (excluding Trust Units held by the offeror), the number of
      voting units 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 units 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 units 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 Unitholder if
      the Unitholder fails to deposit or tender voting units 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 Trust Units issued from and after the effective date (the
"Effective Date") of the Unitholder Rights Plan Agreement (being the later of
the date of the Unitholder Rights Plan Agreement and the receipt by the Trust of
all regulatory approvals with respect to the Unitholder Rights Plan Agreement).
Rights are also attached to Trust Units outstanding on the Effective Date,
although certificates issued prior to the Effective Date will not bear such a
legend. Unitholders 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 Trust Units and will not be exercisable or transferable
separately from the Trust Units. From and after the Separation Time, the Rights
will become exercisable, will be evidenced by Rights Certificates and will be
transferable separately from the Trust Units.





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 units as registered on the
      books of the Trust, other than the
offeror;





(c)
            the
      takeover bid contains, and the take-up and payment for securities tendered
      or deposited is subject to, an irrevocable and unqualified 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 which is not less than 45 days
      following the date of the takeover bid and only if at such date more than
      50% of the voting units held by independent Unitholders shall have been
      deposited or tendered pursuant to the takeover bid and not
      withdrawn;





(d)
            the
      takeover bid contains an irrevocable and unqualified provision that unless
      the takeover bid is withdrawn, voting units 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 units may be taken up and
      paid for and that any voting units deposited pursuant to the takeover bid
      may be withdrawn until taken up and paid for;
  and


2007
      Annual Information Form – Vermilion Energy Trust
                30











(e)
            the
      takeover bid contains an irrevocable and unqualified provision that if, on
      the date on which voting units may be taken up and paid for, more than 50%
      of the voting units held by independent Unitholders shall have been
      deposited pursuant to the takeover bid and not withdrawn, the offeror will
      make a public announcement of that fact and the takeover bid will remain
      open for deposits and tenders of voting units 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 except that it may expire on
the same date as the Permitted Bid, subject to the requirement that it be
outstanding for a minimum period of 35 days.





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
units on terms which the board of directors considers fair to all Unitholders.
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 units 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 units of the
Trust 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 units, the
board of directors may, prior to the occurrence of a Flip-in Event that would
occur by reason of an acquisition of voting units 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 units,
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 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.





Board of
Directors





The
adoption of the Rights Plan will 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 Trust. 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 Unitholders as are considered
appropriate.





Amendment





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





2007
      Annual Information Form – Vermilion Energy Trust
                31








ADDITIONAL
INFORMATION RESPECTING VERMILION RESOURCES LTD.





Management
of Vermilion





Vermilion
has a board of directors currently consisting of six individuals.  The
directors are elected by the Trust at the direction of Unitholders by ordinary
resolution, and hold office until the Meeting.





As at
March 14, 2008, the directors and officers of Vermilion, as a group,
beneficially owned, directly or indirectly, 1,286,540 Trust Units representing
approximately 1.9% of the issued and outstanding Trust Units, as well as an
aggregate of 3,814,628 Exchangeable Shares.  Assuming all Exchangeable
Shares were exchanged for Trust Units, using the Exchange Ratio of 1.58086, the
directors and executive officers would hold 7,316,933 Trust Units, representing
9.9% of then issued and outstanding Trust Units.





The
following table sets forth certain information respecting the directors and
officers of Vermilion.





Name
      and
              Municipality
      of Residence
            Office
      Held
            Year
      First Elected or Appointed as Director
            Principal
      Occupation During the Past Five YearsLorenzo
      Donadeo
              Calgary,
      Alberta
            President
      and Chief Executive Officer and Director
            1994
            Since
      2003, President and Chief Executive Officer of Vermilion
              
              2000
      to 2003, Executive Vice President and Chief Operating Officer of
      VermilionW. Kenneth Davidson (2)(3)
              Oakville,
      Ontario
            Director
            2005
            Since
      2002, Director of Millar Western Forest Products Ltd.
              1996
      to 2001, Co-Chief Executive Officer of Gordon Capital Corporation, an
      investment banking firmClaudio
      A. Ghersinich
              Calgary,
      Alberta
            Director
            1994
            Since
      2005, Executive Director of Carrera Investments Corp., a private
      investment company
              
              2003
      to 2005, Executive Vice President, Business Development of
      VermilionJoseph
      F. Killi (2)(3)
              Calgary,
      Alberta
            Director
            1999
            Since
      2006, Vice Chairman of Realex Properties Corp., a public real estate
      company
              
              Since
      2005, Chairman of Parkbridge Lifestyle Communities Inc., a public real
      estate company
              
              Since
      1993, President of Rosebridge Capital Corp. Inc., a private real estate
      investment company
              
              1998
      to 2005, Chief Executive Officer of Parkbridge Lifestyle Communities
      Inc.Larry J. Macdonald(1)(2)(3)(4)(5)
              Calgary,
      Alberta
            Director
      and Chairman of the Board
            2002
            Since
      2003, Chairman & Chief Executive Officer and a director
      of  Point Energy Ltd., a private oil and gas
company
              
              Since
      2003, Managing Director of Northpoint Energy Ltd., a private oil and gas
      companyWilliam
      F. Madison (2)(4)(5)
              Sugar
      Land, Texas
            Director
            2004
            From
      1999 to 2006, a director of Montana Tech Foundation, serving as Chairman
      during 2004 and 2005
              
              From
      1965 to 2000, Mr. Madison worked in increasingly senior positions with
      Marathon Oil Company, a public oil and gas company, where he retired as
      Senior Vice President Worldwide Production




2007
      Annual Information Form – Vermilion Energy Trust
                32











Name
      and
              Municipality
      of Residence
            Office
      Held
            Year
      First Elected or Appointed as Director
            Principal
      Occupation During the Past Five YearsJohn
      D. Donovan
              Calgary,
      Alberta
            Executive
      Vice President Business Development
            N/A
            Since
      2005, Executive Vice President, Business Development of
      Vermilion
              
              2002
      to 2005, Senior Vice President of Harrison Lovegrove, oil and gas
      consultantsCurtis
      W. Hicks
              Calgary,
      Alberta
            Executive
      Vice President and Chief Financial Officer
            N/A
            Since
      2004, Executive Vice President and Chief Financial Officer of
      Vermilion
              
              2003
      to 2004, Vice President, Finance and Chief Financial Officer of
      VermilionG.R.
      (Bob) Mac Dougall
              Calgary,
      Alberta
            Executive
      Vice President and Chief Operating Officer
            N/A
            Since
      2006, Executive Vice President and Chief Operating Officer of
      Vermilion
              
              2004
      to 2006, Chief Operating Officer of Vermilion
              
              1999
      to 2004, General Manager of production and operations of Chevron Texaco
      Western Canada producing oil and gas propertiesKeith
      D. Hartman
              Calgary,
      Alberta
            Vice
      President Exploitation
            N/A
            Since
      2006, Vice President Exploitation of Vermilion
              
              2004
      to 2006, Director of Exploitation of Vermilion
              
              2001
      to 2004, Project Manager and Manager of Production Optimization of Chevron
      Texaco Western Canada producing oil and gas propertiesRaj
      C. Patel
              Calgary,
      Alberta
            Vice
      President Marketing
            N/A
            Since
      2001, Vice President, Marketing of VermilionScott
      Ferguson
              Harlingen,
      Netherlands
            General
      Manager, Vermilion Oil & Gas Netherlands (VOGN)
            
            Since
      March 1, 2008, General Manager, Vermilion Oil & Gas Netherlands
      (VOGN)
              
              2006
      to March 1, 2008, Production Manager Canada, Vermilion
              
              2005
      to 2006, Senior Exploitation Engineer Vermilion
              
              2003
      to 2005, Senior production Engineer VermilionBruce
      D. Lake
              Perth,
      Australia
            Managing
      Director, Vermilion Australia
            N/A
            Since
      2005, Managing Director of Vermilion Oil & Gas Australia Pty Ltd., a
      subsidiary of the Trust
              
              1996
      to 2005, Operations Manager for Apache Energy Limited’s Australian oil and
      gas operationsPeter
      Sider
              Biscarosse,
      France
            Regional
      General Manager, European Operations
            N/A
            Since
      March 1, 2008, Regional General Manager, European Operations
              2006
      to March 1, 2008, Managing Director of Vermilion Oil & Gas Netherlands
      B.V., a subsidiary of the Trust
              
              1999
      to 2006, founder of four private and public oil and gas companies in
      Alberta including Resolution Resources, EMBO Petroleum, Newheart Oil and
      Gas and Breakside EnergyCharles
      W. Berard
              Calgary,
      Alberta
            Corporate
      Secretary
            N/A
            Partner
      at Macleod Dixon llp, Barristers &
  Solicitors.





Notes:


(1)    Chairman
of the Board


(2)    Member
of the Audit Committee


(3)    Member
of the Governance and Human Resources Committee


(4)    Member
of the Health, Safety and Environment Committee


(5)    Member
of the Independent Reserves Committee




2007
      Annual Information Form – Vermilion Energy Trust
                33








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 Trust.  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
      ExperienceW. Kenneth
      Davidson
              (Chair)
            Yes
            Yes
            Mr. Davidson holds Bachelor of
      Science degrees in Mathematics and Business and a Masters in Business
      Administration degree.  Mr. Davidson has obtained significant
      financial experience and exposure to accounting including internal
      controls and procedures for financial reporting and complex financial
      issues as a director, officer or consultant to a number of companies
      involved in the banking and securities areas of the financial services
      sector.Joseph F.
Killi
            Yes
            Yes
            Mr. Killi holds a Bachelor of
      Science degree, a Bachelor of Commerce degree 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 Trust as well as the implications of
      those accounting principles on the Trust'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.Larry J.
      Macdonald
            Yes
            Yes
            Mr. Macdonald holds a Bachelor of
      Science degree.  In 2005, Mr. Macdonald attended a
      financial literacy course at theUniversityofToronto's Rotman'sSchoolofManagementin conjunction with theInstituteofCorporate Directors.  In addition, Mr.
      Macdonald has obtained financial experience and exposure to accounting and
      financial issues in a number of senior officer positions with Point Energy
      Ltd., Pointwest Energy Inc., Westpoint Energy Inc. and Anderson
      Exploration Ltd. and as a director, audit committee member and officer of
      a number of other public and private companies as well as not-for-profit
      organizations.William F.
      Madison
            Yes
            Yes
            Mr. Madison holds a Bachelor of
      Science in Petroleum Engineering.  Mr. Madison attended the
      Harvard Program for Management Development. Mr. Madison has obtained
      financial experience and exposure to accounting and financial issues as
      the Chairman of Montana Tech Foundation and as a senior executive of
      Marathon Oil Company and as a director, audit committee member and officer
      of other public and private
companies.











2007
      Annual Information Form – Vermilion Energy Trust
                34













External
Audit Service Fees





During the years ended December
31, 2007 and
2006, Deloitte & Touche
LLP, the auditors of the Trust, received the following fees from the
Trust:




Item
            
            2007
            
            
            2006Audit fees(1)
            
            $
            1,367,900
            
            
            $
            1,075,057Audit related fees(2)
            
            $
            56,466
            
            
            $
            107,563Tax fees(3)
            
            $
            -
            
            
            $
            -





Notes:


(1)
            Audit
      fees consisted of professional services rendered by Deloitte & Touche
      LLP for the audit of the Trust's financial statements for the years ended
      December 31, 2007 and 2006, fees for the review of the quarterly financial
      statements and services provided in connection with statutory and
      regulatory filings or engagements.


(2)
            Audit
      related fees are for assurance and related services reasonably related to
      the performance of the audit or review of the annual financial statements
      and are not reported under the heading "Audit
  Fees".


(3)
            Tax
      fees were for tax compliance, tax advice and tax
  planning.





Vermilion
Share Capital





Vermilion
is authorized to issue an unlimited number of common shares and an unlimited
number of exchangeable shares issuable in series, of which an unlimited number
of Series A Exchangeable Shares are authorized.  The Trust is the sole
holder of the issued and outstanding shares of Vermilion, other than the
Exchangeable Shares.





Common
Shares





Each
common share will entitle its holder to receive notice of and to attend all
meetings of the shareholders of Vermilion and to one vote at such
meetings.  The holders of common shares will be, at the discretion of
the board of directors of Vermilion and subject to applicable legal
restrictions, and subject to certain preferences of holders of Exchangeable
Shares, entitled to receive any dividends declared by the board of directors on
the common shares to the exclusion of the holders of Exchangeable Shares,
subject to the proviso that no dividends shall be paid on the common shares
unless all declared dividends on the outstanding Exchangeable Shares have been
paid in full.  The holders of common shares will be entitled to share
equally in any distribution of the assets of Vermilion upon the liquidation,
dissolution, bankruptcy or winding-up of Vermilion or other distribution of its
assets among its shareholders for the purpose of winding-up its
affairs.  Such participation is subject to the rights, privileges,
restrictions and conditions attaching to the Exchangeable Shares and any other
shares having priority over the common shares.





Exchangeable
Shares





Each
Exchangeable Share will have economic rights (including the right to have the
Exchange Ratio adjusted to account for distributions paid to Unitholders) and
voting attributes (through the benefit of the Special Voting Right granted to
the Voting and Exchange Trust Agreement Trustee) as set forth in the
Exchangeable Share Provisions.  In addition, holders of Exchangeable
Shares will have the right to receive Trust Units at any time in exchange for
their Exchangeable Shares, on the basis of the Exchange Ratio in effect at the
time of the exchange.  Fractional Trust Units will not be delivered on
any exchange of Exchangeable Shares and the Voting and Exchange Trust
Agreement.  In the event that the Exchange Ratio in effect at the time
of an exchange would otherwise entitle a holder of Exchangeable Shares to a
fractional Trust Unit, the number of Trust Units to be delivered will be rounded
down to the nearest whole number of Trust Units.  Holders of
Exchangeable Shares will not receive cash distributions from the
Trust.  Rather, the Exchange Ratio will be adjusted to account for
distributions paid to Unitholders in the manner described
below.  Holders of Exchangeable Shares may receive dividends from
Vermilion at the discretion of the directors of Vermilion.





The
initial Exchange Ratio upon the completion of the Arrangement was equal to
one.  On each Distribution Payment Date, the Exchange Ratio will be
increased, on a cumulative basis, in respect of the Distribution on such date by
an amount which assumes the reinvestment of such Distribution in Trust Units at
the then-prevailing Current Market Price of a Trust Unit.  The
Exchange Ratio will be decreased in respect of any dividends paid on the
Exchangeable Shares by an amount of such dividend divided by the then-prevailing
Current Market Price of a Trust Unit.





2007
      Annual Information Form – Vermilion Energy Trust
                35








Ranking





The
Exchangeable Shares will rank rateably with shares of any other series of
exchangeable shares of Vermilion and prior to any common shares of Vermilion and
any other shares ranking junior to the Exchangeable Shares with respect to the
payment of dividends, if any, that have been declared and the distribution of
assets in the event of the liquidation, dissolution or winding-up of
Vermilion.





Dividends





Holders
of Exchangeable Shares will be entitled to receive cash dividends if, as and
when declared by the board of directors of Vermilion.  Vermilion
anticipates that it may from time to time declare dividends on the Exchangeable
Shares up to but not exceeding any cash distributions on the Trust Units into
which such Exchangeable Shares are exchangeable.  In the event that
any such dividends are paid, the Exchange Ratio will be correspondingly reduced
to reflect such dividends.





Certain
Restrictions





Vermilion
will not, without obtaining the approval of the holders of the Exchangeable
Shares as set forth below under the subheading "Amendment and
Approval":





(a)
            pay
      any dividend on the common shares or any other shares ranking junior to
      the Exchangeable Shares, other than stock dividends payable in common
      shares or any other shares ranking junior to the Exchangeable
      Shares;





(b)
            redeem,
      purchase or make any capital distribution in respect of the common shares
      or any other shares ranking junior to the Exchangeable
    Shares;





(c)
            redeem
      or purchase any other shares of Vermilion ranking equally with the
      Exchangeable Shares with respect to the payment of dividends or on any
      liquidation distribution; or





(d)
            amend
      the articles or by-laws of Vermilion in any manner that would affect the
      rights or privileges of the holders of Exchangeable
  Shares.





The
above restrictions in (a), (b) and (c) shall not apply if all declared dividends
on the outstanding Exchangeable Shares shall have been paid in
full.





Liquidation or Insolvency of
Vermilion





In the
event of the liquidation, dissolution or winding-up of Vermilion or any other
proposed distribution of the assets of Vermilion among its shareholders for the
purpose of winding up its affairs, a holder of Exchangeable Shares will be
entitled to receive from Vermilion, in respect of each such Exchangeable Share,
that number of Trust Units equal to the Exchange Ratio as at the effective date
of such event.





Upon
the occurrence of such an event, the Trust and Trust Subsidiary will each have
the overriding right to purchase all but not less than all of the Exchangeable
Shares then outstanding (other than Exchangeable Shares held by the Trust or any
subsidiary of the Trust) at a purchase price per Exchangeable Share to be
satisfied by the issuance or delivery, as the case may be, of that number of
Trust Units equal to the Exchange Ratio at such time and, upon the exercise of
this right, the holders thereof will be obligated to sell such Exchangeable
Shares to the Trust or Trust Subsidiary, as applicable.  This right
may be exercised by either the Trust or Trust Subsidiary.





Upon
the occurrence of an Insolvency Event, the Voting and Exchange Trust Agreement
Trustee on behalf of the holders of the Exchangeable Shares will have the right
to require the Trust or Trust Subsidiary to purchase any or all of the
Exchangeable Shares then outstanding and held by such holders at a purchase
price per Exchangeable Share to be satisfied by the issuance or delivery, as the
case may be, of that number of Trust Units equal to the Exchange Ratio at such
time, as described under the subheading "Voting and Exchange Trust Agreement-
Optional Exchange Right".


2007
      Annual Information Form – Vermilion Energy Trust
                36











Automatic Exchange Right on
Liquidation of the Trust





The
Voting and Exchange Trust Agreement provides that in the event of a Trust
liquidation event, as described below, the Trust or Trust Subsidiary will be
deemed to have purchased all outstanding Exchangeable Shares and each holder of
Exchangeable Shares will be deemed to have sold their Exchangeable Shares
immediately prior to such Trust liquidation event at a purchase price per
Exchangeable Share to be satisfied by the issuance or delivery, as the case may
be, of that number of Trust Units equal to the Exchange Ratio at such
time.  "Trust liquidation event" means:





(a)
            any
      determination by the Trust to institute voluntary liquidation, dissolution
      or winding-up proceedings in respect of the Trust or to effect any other
      distribution of assets of the Trust among the Unitholders for the purpose
      of winding up its affairs; or





(b)
            the
      earlier of, the Trust's receiving notice of and the Trust's otherwise
      becoming aware of, any threatened or instituted claim, suit, petition or
      other proceedings with respect to the involuntary liquidation, dissolution
      or winding up of the Trust or to effect any other distribution of assets
      of the Trust among the Unitholders for the purpose of winding up its
      affairs in each case where the Trust has failed to contest in good faith
      such proceeding within 30 days of becoming aware
  thereof.





Retraction of Exchangeable
Shares by Holders and Retraction Call Right





Subject
to the Retraction Call Right of the Trust and Trust Subsidiary described below,
a holder of Exchangeable Shares will be entitled at any time to require
Vermilion to redeem any or all of the Exchangeable Shares held by such holder
for a retraction price (the "Retraction Price") per Exchangeable Share equal to
the value of that number of Trust Units equal to the Exchange Ratio as at the
date of redemption (the "Retraction Date"), to be satisfied by the delivery of
such number of Trust Units.  Fractional Trust Units will not be
delivered.  Any amount payable on account of the Retraction Price that
includes a fractional Trust Unit will be rounded down to the nearest whole
number of Trust Units.  Holders of the Exchangeable Shares may request
redemption by presenting to Vermilion or the transfer agent for the Exchangeable
Shares a certificate or certificates representing the number of Exchangeable
Shares the holder desires to have redeemed, together with a duly executed
retraction request and such other documents as may be reasonably required to
effect the redemption of the Exchangeable Shares.  Subject to
extension as described below, the redemption will become effective on the
Retraction Date, which will be seven business days after the date on which
Vermilion or the transfer agent receives the retraction
notice.  Unless otherwise requested by the holder and agreed to by
Vermilion, the Retraction Date will not occur on such seventh business day if
such day would occur between any Distribution Record Date and the Distribution
Payment Date that corresponds to such Distribution Record Date.  In
this case, the Retraction Date will instead occur on such Distribution Payment
Date.  The reason for this is to ensure that the Exchange Ratio used
in connection with such redemption is increased to account for the
Distribution.





When a
holder requests Vermilion to redeem the Exchangeable Shares, the Trust and Trust
Subsidiary will have an overriding right (the "Retraction Call Right") to
purchase on the Retraction Date all but not less than all of the Exchangeable
Shares that the holder has requested Vermilion to redeem at a purchase price per
Exchangeable Share equal to the Retraction Price, to be satisfied by the
delivery of that number of Trust Units equal to the Exchange Ratio at such
time.  At the time of a Retraction Request by a holder of Exchangeable
Shares, Vermilion will immediately notify the Trust and Trust
Subsidiary.  The Trust or Trust Subsidiary must then advise Vermilion
within two business days as to whether the Retraction Call Right will be
exercised.  A holder may revoke his or her Retraction Request at any
time prior to the close of business on the last business day immediately
preceding the Retraction Date, in which case the holder's Exchangeable Shares
will neither be purchased by the Trust or Trust Subsidiary nor be redeemed by
Vermilion.  If the holder does not revoke his or her Retraction
Request, the Exchangeable Shares that the holder has requested Vermilion to
redeem will on the Retraction Date be purchased by the Trust or Trust Subsidiary
or redeemed by Vermilion, as the case may be, in each case at a purchase price
per Exchangeable Share equal to the Retraction Price.  In addition, a
holder of Exchangeable Shares may elect to instruct the Voting and Exchange
Trust Agreement Trustee to exercise the optional exchange right (the "Optional
Exchange Right") to require the Trust or Trust Subsidiary to acquire such
holder's Exchangeable Shares in circumstances where neither the Trust nor Trust
Subsidiary have exercised the Retraction Call Right.  See "Voting and
Exchange Trust Agreement-Optional Exchange Right".





The
Retraction Call Right may be exercised by either the Trust or Trust
Subsidiary.  If, as a result of solvency provisions of applicable law,
Vermilion is not permitted to redeem all Exchangeable Shares tendered by a
retracting holder, Vermilion will redeem only those Exchangeable Shares tendered
by the holder as would not be contrary to such provisions of applicable
law.  The holder of any Exchangeable Shares not redeemed by Vermilion
will be deemed to have required the Trust to purchase such unretracted
Exchangeable Shares in exchange for Trust Units on the Retraction Date pursuant
to the Optional Exchange Right.  See "Voting and Exchange Trust
Agreement- Optional Exchange Right".


2007
      Annual Information Form – Vermilion Energy Trust
                37











Redemption of Exchangeable
Shares





Subject
to applicable law and the Redemption Call Right of the Trust and Trust
Subsidiary, Vermilion:





(a)
            will,
      on the tenth anniversary of the Effective Date, subject to extension of
      such date by the board of directors of Vermilion (the "Automatic
      Redemption Date"), redeem all but not less than all of the then
      outstanding Exchangeable Shares for a redemption price per Exchangeable
      Share equal to the value of that number of Trust Units equal to the
      Exchange Ratio as at the last business day prior to that Redemption Date
      (as that term is defined below) (the "Redemption Price"), to be satisfied
      by the delivery of such number of Trust Units;
  and





(b)
            may,
      at any time when the aggregate number of issued and outstanding
      Exchangeable Shares is less than 500,000 (other than Exchangeable Shares
      held by the Trust and its subsidiaries and as such shares may be adjusted
      from time to time) (the "De Minimus Redemption Date" and, collectively
      with the Automatic Redemption Date, a "Redemption Date"), redeem all but
      not less than all of the then outstanding Exchangeable Shares for the
      Redemption Price per Exchangeable Share (unless contested in good faith by
      the Trust).





Vermilion
will, at least 45 days prior to any Redemption Date, provide the registered
holders of the Exchangeable Shares with written notice of the prospective
redemption of the Exchangeable Shares by Vermilion.





The
Trust and Trust Subsidiary will have the right (the "Redemption Call Right"),
notwithstanding a proposed redemption of the Exchangeable Shares by Vermilion on
the applicable Redemption Date, pursuant to the Exchangeable Share Provisions,
to purchase on any Redemption Date all but not less than all of the Exchangeable
Shares then outstanding (other than Exchangeable Shares held by the Trust or its
subsidiaries) in exchange for the Redemption Price per Exchangeable Share and,
upon the exercise of the Redemption Call Right, the holders of all of the then
outstanding Exchangeable Shares will be obliged to sell all such shares to the
Trust or Trust Subsidiary, as applicable.  If either the Trust or
Trust Subsidiary exercises the Redemption Call Right, then Vermilion's right to
redeem the Exchangeable Shares on the applicable Redemption Date will
terminate.  The Redemption Call Right may be exercised by either the
Trust or Trust Subsidiary.





Voting
Rights





Except
as required by applicable law, the holders of the Exchangeable Shares are not
entitled as such to receive notice of or attend any meeting of the shareholders
of Vermilion or to vote at any such meeting.  Holders of Exchangeable
Shares will have the notice and voting rights respecting meetings of the Trust
that are provided in the Voting and Exchange Trust Agreement.  See
"Voting and Exchange Trust Agreement - Voting Rights".





Amendment and
Approval





The
rights, privileges, restrictions and conditions attaching to the Exchangeable
Shares may be changed only with the approval of the holders
thereof.  Any such approval or any other approval or consent to be
given by the holders of the Exchangeable Shares will be sufficiently given if
given in accordance with applicable law and subject to a minimum requirement
that such approval or consent be evidenced by a resolution passed by not less
than two-thirds of the votes cast thereon (other than shares beneficially owned
by the Trust, or any of its subsidiaries and other affiliates) at a meeting of
the holders of the Exchangeable Shares duly called and held at which holders of
at least 5% of the then outstanding Exchangeable Shares are present in person or
represented by proxy.  In the event that no such quorum is present at
such meeting within one-half hour after the time appointed therefore, then the
meeting will be adjourned to such place and time (not less than ten days later)
as may be determined at the original meeting and the holders of Exchangeable
Shares present in person or represented by proxy at the adjourned meeting will
constitute a quorum thereat and may transact the business for which the meeting
was originally called.  At the adjourned meeting, a resolution passed
by the affirmative vote of not less than two-thirds of the votes cast thereon
(other than shares beneficially owned by the Trust or any of its subsidiaries
and other affiliates) will constitute the approval or consent of the holders of
the Exchangeable Shares.





Actions by the Trust under
the Support Agreement and the Voting and Exchange Trust
Agreement





Under
the Exchangeable Share Provisions, Vermilion will agree to take all such actions
and do all such things as are necessary or advisable to perform and comply with
its obligations under, and to ensure the performance and compliance by the Trust
with its obligations under, the Support Agreement and the Voting and Exchange
Trust Agreement.


2007
      Annual Information Form – Vermilion Energy Trust
                38














Voting
and Exchange Trust Agreement





Voting
Rights





In
accordance with the Voting and Exchange Trust Agreement, the Trust will issue a
Special Voting Right to Computershare Trust Company of Canada, the Voting and
Exchange Trust Agreement Trustee, for the benefit of the holders (other than the
Trust and Trust Subsidiary) of the Exchangeable Shares.  The Special
Voting Right will carry a number of votes, exercisable at any meeting at which
Unitholders are entitled to vote, equal to the number of Trust Units (rounded
down to the nearest whole number) into which the Exchangeable Shares are then
exchangeable multiplied by the number of votes to which the holder of one Trust
Unit is then entitled.  With respect to any written consent sought
from the Unitholders, each vote attached to the Special Voting Right will be
exercisable in the same manner as set forth above.





Each
holder of an Exchangeable Share on the record date for any meeting at which
Unitholders are entitled to vote will be entitled to instruct the Voting and
Exchange Trust Agreement Trustee to exercise that number of votes attached to
the Special Voting Right which relate to the Exchangeable Shares held by such
holder.  The Voting and Exchange Trust Agreement Trustee will exercise
each vote attached to the Special Voting Right only as directed by the relevant
holder and, in the absence of instructions from a holder as to voting, will not
exercise such votes.





The
Voting and Exchange Trust Agreement Trustee will send to the holders of the
Exchangeable Shares the notice of each meeting at which the Unitholders are
entitled to vote, together with the related meeting materials and a statement as
to the manner in which the holder may instruct the Voting and Exchange Trust
Agreement Trustee to exercise the votes attaching to the Special Voting Right,
at the same time as the Trust sends such notice and materials to the
Unitholders.  The Voting and Exchange Trust Agreement Trustee will
also send to the holders copies of all information statements, interim and
annual financial statements, reports and other materials sent by the Trust to
the Unitholders at the same time as such materials are sent to the
Unitholders.  To the extent such materials are provided to the Voting
and Exchange Trust Agreement Trustee by the Trust, the Voting and Exchange Trust
Agreement Trustee will also send to the holders all materials sent by third
parties to Unitholders, including dissident proxy circulars and tender and
exchange offer circulars, as soon as possible after such materials are first
sent to Unitholders.





All
rights of a holder of Exchangeable Shares to exercise votes attached to the
Special Voting Right will cease upon the exchange of all such holder's
Exchangeable Shares for Trust Units.  With the exception of
administrative changes for the purpose of adding covenants for the protection of
the holders of the Exchangeable Shares, making necessary amendments or curing
ambiguities or clerical errors (in each case provided that the board of
directors of Trust Subsidiary and Vermilion are of the opinion that such
amendments are not prejudicial to the interests of the holders of the
Exchangeable Shares), the Voting and Exchange Trust Agreement may not be amended
without the approval of the holders of the Exchangeable Shares.





Optional Exchange
Right





Upon
the occurrence and during the continuance of:





(a)
            an
      Insolvency Event; or





(b)
            circumstances
      in which the Trust or Trust Subsidiary may exercise a Call Right, but
      elect not to exercise such Call
Right;





a
holder of Exchangeable Shares will be entitled to instruct the Trustee to
exercise the Optional Exchange Right with respect to any or all of the
Exchangeable Shares held by such holder, thereby requiring the Trust or Trust
Subsidiary to purchase such Exchangeable Shares from the
holder.  Immediately upon the occurrence of (i) an Insolvency Event,
(ii) any event which will, with the passage of time or the giving of notice,
become an Insolvency Event, or (iii) the election by the Trust and Trust
Subsidiary not to exercise a Call Right which is then exercisable by the Trust
and Trust Subsidiary, Vermilion, the Trust or Trust Subsidiary will give notice
thereof to the Trustee.  As soon as practicable thereafter, the
Trustee will then notify each affected holder of Exchangeable Shares (who has
not already provided instructions respecting the exercise of the Optional
Exchange Right) of such event or potential event and will advise such holder of
its rights with respect to the Optional Exchange Right.





The
purchase price payable by the Trust or Trust Subsidiary for each Exchangeable
Share to be purchased under the Optional Exchange Right will be satisfied by the
issuance of that number of Trust Units equal to the Exchange Ratio as at the
last business day prior to the day of closing of the purchase and sale of such
Exchangeable Share under the Exchange Right (the "Exchange Price").


2007
      Annual Information Form – Vermilion Energy Trust
                39











If, as
a result of solvency provisions of applicable law, Vermilion is unable to redeem
all of a holder's Exchangeable Shares which such holder is entitled to have
redeemed in accordance with the Exchangeable Share Provisions, the holder will
be deemed to have exercised the Optional Exchange Right with respect to the
unredeemed Exchangeable Shares and the Trust or Trust Subsidiary will be
required to purchase such shares from the holder in the manner set forth
above.





Support
Agreement





The Trust Support
Obligation





Under
the Support Agreement, the Trust will agree that:





(a)
            the
      Trust will take all actions and do all things necessary to ensure that
      Vermilion is able to pay to the holders of the Exchangeable Shares the
      Liquidation Amount in the event of a liquidation, dissolution or
      winding-up of Vermilion, the Retraction Price in the event of the giving
      of a Retraction Request by a holder of Exchangeable Shares, or the
      Redemption Price in the event of a redemption of Exchangeable Shares by
      Vermilion; and





(b)
            the
      Trust will not vote or otherwise take any action or omit to take any
      action causing the liquidation, dissolution or winding-up of
      Vermilion.





The
Support Agreement will also provide that the Trust will not issue or distribute
to the holders of all or substantially all of the outstanding Trust
Units:





(a)
            additional
      Trust Units or securities convertible into Trust
  Units;





(b)
            rights,
      options or warrants for the purchase of Trust Units;
  or





(c)
            units
      or securities of the Trust other than Trust Units, evidences of
      indebtedness of the Trust or other assets of the
  Trust;





unless
the same or an equivalent distribution is made to holders of Exchangeable
Shares, an equivalent change is made to the Exchangeable Shares, or the approval
of Vermilion and holders of Exchangeable Shares has been obtained.





In
addition, the Trust may not subdivide, reduce, consolidate, reclassify or
otherwise change the terms of the Trust Units unless an equivalent change is
made to the Exchangeable Shares or the approval of the holders of Exchangeable
Shares has been obtained.





In the
event of any proposed takeover bid, or similar transaction affecting the Trust
Units and supported by the Trust, the Trust will use reasonable efforts to take
all actions necessary or desirable to enable holders of Exchangeable Shares to
participate in such transaction to the same extent and on an economically
equivalent basis as the Unitholders.





The
Support Agreement also provides that, as long as any outstanding Exchangeable
Shares are owned by any person or entity other than the Trust or any of its
respective subsidiaries and other affiliates, the Trust will, unless approval to
do otherwise is obtained from the holders of Exchangeable Shares, remain the
direct or indirect beneficial owner collectively of more than 50% of all of the
issued and outstanding voting securities of Vermilion, provided that the Trust
will not be in violation of this obligation if a party acquires all or
substantially all of the assets of the Trust.  With the exception of
administrative changes for the purpose of adding covenants for the protection of
the holders of the Exchangeable Shares, making certain necessary amendments or
curing ambiguities or clerical errors (in each case provided that the board of
directors of Vermilion and the Trustee are of the opinion that such amendments
are not prejudicial to the interests of the holders of the Exchangeable Shares),
the Support Agreement may not be amended without the approval of the holders of
the Exchangeable Shares.





Under
the Support Agreement, the Trust will agree to not exercise any voting rights
attached to the Exchangeable Shares owned by it or any of its subsidiaries and
other affiliates on any matter considered at meetings of holders of Exchangeable
Shares (including any approval sought from such holders in respect of matters
arising under the Support Agreement).


2007
      Annual Information Form – Vermilion Energy Trust
                40











Delivery of Trust
Units





The
Trust will agree to make such filings and seek such regulatory consents and
approvals as are necessary so that the Trust Units issuable upon the exchange of
Exchangeable Shares will be issued in compliance with applicable securities laws
in Canada and may be traded freely on the TSX or such other exchange on which
the Trust Units may be listed, quoted or posted for trading from time to
time.





Notes





The
following summary of the material attributes and characteristics of the Notes
does not purport to be complete and is qualified in its entirety by reference to
the provisions of a note indenture (the "Note Indenture") dated January 16, 2003
and made between Vermilion Acquisition Ltd. (prior to its amalgamation with
Vermilion under the Arrangement) and Computershare Trust Company of Canada, as
trustee (the "Note Trustee"), which contains a complete statement of such
attributes and characteristics.  The Notes have been issued under the
Note Indenture.





Terms and Issue of
Notes





Pursuant
to the Arrangement, Notes were issued to the Trust and to former holders of
common shares and options of Vermilion.  Notes issued to such former
holders were transferred by such holders to the Trust in return for Trust
Units.  As a result, the Trust holds all of the issued and outstanding
Notes.





The
Notes are unsecured and bear interest from the date of issue at 13% per
annum.  Interest will be payable for each month during the term on the
15th
day of the month following such month.  The first interest payment was
due on March 15, 2003 for the period commencing on the Effective Date and
ending on February 28, 2003.





Although
pursuant to the terms of the Note Indenture Vermilion is permitted to make
payments against the principal amount of the Notes outstanding from time to time
without notice or bonus, Vermilion is not required to make any payment in
respect of principal until December 31, 2028, subject to the terms of any
secured financing and subject to extension in the limited circumstances provided
in the Note Indenture.





In
contemplation of the possibility that Notes may be distributed to Unitholders
upon the redemption of their Trust Units, the Note Indenture provides that if
persons other than the Trust (the "Non-Fund Holders") own Notes having an
aggregate principal amount in excess of $1,000,000, either the Trust or the
Non-Fund Holders shall be entitled, among other things, to require the Note
Trustee to exercise the powers and remedies available under the Note Indenture
upon an event of default and, with the Trust, the Non-Fund Holders may provide
consents, waivers or directions relating generally to the variance of the Note
Indenture and the rights of noteholders.  The Note Indenture will
allow the Trust flexibility to delay payments of interest or principal otherwise
due to it while payment is made to other noteholders, and to allow other
noteholders to be paid out before the Trust.  Any delayed payments
will be due 5 days after demand.





Principal
and interest on the Notes will be payable in lawful money of Canada directly to
the holders of Notes at their address set forth in the register of holders of
Notes.





Ranking





The
Notes will be unsecured debt obligations of Vermilion and will rank pari passu with all other
unsecured indebtedness of Vermilion, but subordinate to all secured
debt.





Events of
Default





The
Note Indenture will provide that any of the following shall constitute an Event
of Default:  (a) default in payment of the principal of the Notes
when required; (b) the failure to pay all of the interest obligations on
the Notes for a period of three months; (c) if Vermilion has defaulted and
a demand for payment has been made under any material instrument, indenture or
document evidencing indebtedness of more than $5 million and Vermilion has
failed to remedy such default within applicable curative periods;
(d) certain events of winding-up, liquidation, bankruptcy, insolvency,
receivership or seizure; (e) default in the observance or performance of
any other covenant or condition of the Note Indenture and continuance of such
default for a period of 30 days after notice in writing has been given by the
Note Trustee to Vermilion specifying such default and requiring Vermilion to
rectify the same; (f) Vermilion ceasing to carry on its business; and (g)
material default by Vermilion under material agreements if property is liable to
forfeiture or termination.




2007
      Annual Information Form – Vermilion Energy Trust
                41








Royalty
Agreement





Coincident
with the Arrangement becoming effective, the Partnership and the Trust entered
into the Royalty Agreement pursuant to which the Partnership granted the Royalty
to the Trust. As owner of the Royalty, the Trust is entitled to cash
distributions of approximately 99% of the cash flow from all present and future
oil and gas properties and related tangibles owned by the Partnership after
certain costs, expenditures and deductions which include 99% of: (i) all amounts
of interest and principal payable by Vermilion on account of or in respect of
its credit facilities (ii) specified amounts of interest and principal payable
by Vermilion on account of or in respect of its indebtedness to the Trust; (iii)
the Partnership's share of operating costs and capital expenditures; (iv)
amounts required to be paid to certain reserves; (v) general and administrative
expenses; and (vi) acquisition costs of future oil and gas properties and
related tangibles. Such cash distributions are to be paid on or about the 15th
day of the second month following the month to which the distribution
relates.





From
time to time upon notice from the Partnership, the Trust has an obligation (the
"Deferred Purchase Price Obligation") to pay the Partnership, as additional
consideration for the Royalty, such portion of the acquisition cost of future
oil and gas properties and capital expenditures including amounts borrowed by
Vermilion to fund such costs and expenditures as may be designated by the
Partnership. The Trust's obligation to pay amounts as a Deferred Purchase Price
Obligation is subject to it having available funds from certain designated
sources.





The
Partnership is entitled to make farmouts or other similar dispositions of
specific interests in any part of the properties subject to the Royalty, and
upon the farmee or other participant earning its interest pursuant to the
farmout or other disposition, the Royalty shall burden only the working interest
retained by or reserved to the Partnership. Any net proceeds from the sale of
properties subject to the Royalty shall be allocated to the Trust as to 99% of
the net proceeds after being reduced by the credit facilities applicable to the
properties.  The remaining 1% and all amounts allocated to tangibles
and miscellaneous interests shall be allocated to the Partnership.





Under
the Royalty Agreement, the Trust is obligated to reimburse the Partnership in
respect of 99% of certain non-deductible crown royalties paid by the
Partnership; and the Partnership shall be entitled to set off such amounts
reimbursable to it against payments to the Trust on account of the
Royalty.





The
Royalty does not constitute an interest in land. Except upon the insolvency of
the Partnership, the Trust is not entitled to take its share of production in
kind or to separately sell or market its share of petroleum
substances.





MARKET
FOR PRICE RANGE AND TRADING VOLUME OF SECURITIES





The
outstanding Trust Units of the Trust are listed and posted for trading on the
TSX under the symbol VET.UN.  The following table sets forth the
closing price range and trading volume of the Trust Units for the periods
indicated:





2007
            High
            Low
            Close
            Volume
    (000's)January
            $35.18
            $30.33
            $31.65
            4,664February
            $34.19
            $31.00
            $31.82
            3,705March
            $32.90
            $30.55
            $31.60
            3,429April
            $34.95
            $30.70
            $33.75
            3,996May
            $37.35
            $33.00
            $35.49
            4,196June
            $36.15
            $33.76
            $36.00
            3,178July
            $38.98
            $35.44
            $38.60
            3,570August
            $38.45
            $33.74
            $37.10
            3,477September
            $39.25
            $36.00
            $36.40
            2,331October
            $39.50
            $34.83
            $39.40
            3,343November
            $40.40
            $34.42
            $35.60
            3,723December
            $35.88
            $33.69
            $34.23
            2,928




2008
            High
            Low
            Close
            Volume
    (000's)January
            $36.10
            $31.00
            $34.10
            3,804February
            $39.40
            $33.75
            $39.04
            3,612





2007
      Annual Information Form – Vermilion Energy Trust
                42














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, neither the Trust nor Vermilion is aware of any existing or
potential material conflicts of interest between the Trust and Vermilion and a
director or officer of Vermilion.





INTEREST
OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS





Neither
the Trustee, Vermilion nor any director or officer of Vermilion, nor any other
insider of the Trust, or Vermilion, nor any associate or affiliate of any one of
them has or has had, at any time as at December 31, 2007, any material interest,
direct or indirect, in any transaction or proposed transaction that has
materially affected or would materially affect the Trust or
Vermilion.





LEGAL
PROCEEDINGS





The
Trust is not party to any significant legal proceedings as of March 17,
2008.





MATERIAL
CONTRACTS





The
Trust 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 Trust,
personally disclosed in certificates of qualification that they neither had nor
expected to receive any of the outstanding Trust Units.





TRANSFER
AGENT AND REGISTRAR





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





RISK
FACTORS





The
following is a summary of certain risk factors relating to the business of
Vermilion and the Trust.  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.  Unitholders and potential
Unitholders should consider carefully the information contained herein and, in
particular, the following risk factors.





Reserve
Estimates





The
reserve and recovery information contained in the GLJ Report is only an estimate
and the actual production and ultimate reserves from the properties may be
greater or less than the estimates prepared by GLJ.





Volatility
of Oil and Natural Gas Prices





The
Trust's operational results and financial condition will be dependent on the
prices received by Vermilion for oil and natural gas production.  Oil
and natural gas prices have fluctuated widely 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 decline in oil and natural gas prices could have an
adverse effect on Vermilion's ability to satisfy its obligations under the Notes
and on amounts, if any, payable by the Partnership to the Trust under the
Royalty Agreement thereby decreasing the amount of Distributable Cash to be
distributed to Unitholders.


2007
      Annual Information Form – Vermilion Energy Trust
                43











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 Trust operates, will not be changed in a manner which adversely
affects Unitholders.  This includes, but is not limited to the status
of mutual fund trusts and the resource allowance.





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.





The oil
and gas industry is highly competitive.  Vermilion's competitors for
the acquisition, exploration, production and development of oil and natural gas
properties, and for capital to finance such activities, include companies that
have greater financial and personnel resources available to them than
Vermilion.





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 third parties.  Vermilion will maintain liability
insurance, where available, in amounts consistent with industry
standards.  Business interruption insurance may also be purchased for
selected operations, to the extent that such insurance is
available.  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 obligations under the Notes or reduce the amount receivable by the
Trust from the Partnership under the Royalty Agreement.





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 obligations under the Notes or reduce the amount
receivable by the Trust from the Partnership under the Royalty
Agreement.





Environmental
Concerns





The oil
and natural gas industry is subject to environmental regulation pursuant to
local, provincial and federal legislation.  A breach of such
legislation may result in the imposition of fines or issuance of clean up orders
in respect of Vermilion or its assets.  Such legislation may be
changed to impose higher standards and potentially more costly obligations on
Vermilion.  Although the Trust has established a reclamation fund for
the purpose of funding its currently estimated future environmental and
reclamation obligations based on its current knowledge, there can be no
assurance that the Trust will be able to satisfy its actual future environmental
and reclamation obligations.


2007
      Annual Information Form – Vermilion Energy Trust
                44











Kyoto
Protocol





Canada,
France, the Netherlands and Australia are signatories to the United Nations
Framework Convention on Climate Change and all have ratified the Kyoto Protocol
established thereunder.  Canada, France, the Netherlands and
Australia, as Annex B parties to the Kyoto Protocol, and France and Netherlands
as a party to the European Union Regional Integration Organization, are required
to set legally binding targets to reduce nation-wide emissions of carbon
dioxide, methane, nitrous oxide and other so-called "greenhouse
gases".





Vermilion's
exploration and production facilities and other operations and activities in
Canada, France, the Netherlands 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.  The direct or indirect costs of complying with emissions
regulations may adversely affect the business of Vermilion in Canada, France,
the Netherlands and Australia.





Debt
Service





Vermilion
may, from time to time, finance a significant portion of its operations through
debt (other than the Notes).  Amounts paid in respect of interest and
principal on debt incurred by Vermilion may impair Vermilion's ability to
satisfy its obligations under the Notes or reduce the amount received by the
Trust under the Royalty Agreement.  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
obligations under the Notes or the Royalty Agreement.  Ultimately,
this may result in lower levels of Distributable Cash for the
Trust.





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





Delay
in Cash Distributions





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.





Taxation





Vermilion
is subject to taxation in each taxation year on its income for the year, after
deducting interest paid to the Trust pursuant to the Note Indenture and after
deducting payments, if any, made to the Trust with respect to the Royalty
Agreement.  During the period that Exchangeable Shares issued by
Vermilion are outstanding, a portion of the cash flow from operations will be
subject to tax to the extent that there are not sufficient resource pool
deductions, capital cost allowance or utilization of prior years non-capital
losses to reduce taxable income to zero.  Vermilion intends to deduct,
in computing its income for tax purposes, the full amount available for
deduction in each year associated with the income tax resource pools,
undepreciated capital cost ("UCC") and non-capital losses carried forward from
Vermilion, if any, plus resource pools and UCC created by capital expenditures
of Vermilion.  If there are not sufficient resource pools, UCC and
non-capital losses carried forward or other deductions to shelter the income of
Vermilion, then cash taxes may be payable by Vermilion.  In addition,
there can be no assurance that taxation authorities will not seek to challenge
the amount of interest expense.  If such a challenge were to succeed
against Vermilion, it could materially adversely affect the amount of
Distributable Cash available.





Further,
interest on the Notes accrues at the Trust level for income tax purposes whether
or not actually paid.  The Trust Indenture provides that an amount
equal to the taxable income of the Trust will be distributed each year to
Unitholders in order to reduce the Trust's taxable income to
zero.  Where interest payments on the Notes are due but not paid in
whole or in part, the Trust Indenture provides that any additional amount
necessary to be distributed to Unitholders may be distributed in the form of
Units rather than in cash.  Unitholders will be required to include
such additional amount in income even though they do not receive a cash
distribution.


2007
      Annual Information Form – Vermilion Energy Trust
                45











Changes
in Income Tax Laws





Income
tax laws and administrative policies regarding mutual fund trusts may be changed
in a manner which adversely affects the Trust and/or the
Unitholders.





Depletion
of Reserves





The
Trust has certain unique attributes which differentiate it from other oil and
gas industry participants.  Distributions of Distributable Cash in
respect of properties, absent commodity price increases or cost effective
acquisition and development activities, will decline over time in a manner
consistent with declining production from typical oil, natural gas and natural
gas liquids reserves.  Vermilion will not be reinvesting cash flow in
the same manner as other industry participants.  Accordingly, absent
capital injections or acquisitions of additional oil and gas properties,
Vermilion's initial production levels and reserves will decline.





Vermilion's
future 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 Trust from time to time will vary dependent
upon a number of factors beyond the control of management, including oil and gas
prices.  The trading prices of the Trust Units 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 Trust's assets.





Return
of Capital





Trust
Units will have no value when reserves from the underlying assets of the Trust
can no longer be economically produced and, as a result, cash distributions do
not represent a "yield" in the traditional sense as they represent both return
of capital and return on investment.





Nature
of Trust Units





The
Trust Units do not represent a traditional investment in the oil and natural gas
sector and should not be viewed by investors as shares in
Vermilion.  The Trust Units represent a fractional interest in the
Trust.  As holders of Trust Units, Unitholders will not have the
statutory rights normally associated with ownership of shares of a corporation
including, for example, the right to bring "oppression" or "derivative"
actions.  The Trust's sole assets will be its shares in Vermilion, the
Notes, the Royalty Agreement and other investments in securities.  The
price per Trust Unit is a function of anticipated Distributable Cash, the
underlying assets of the Trust and management's ability to effect long-term
growth in the value of the Trust.  The market price of the Trust Units
will be sensitive to a variety of market conditions including, but not limited
to, interest rates and the ability of the Trust to acquire suitable oil and
natural gas properties.  Changes in market conditions may adversely
affect the trading price of the Trust Units.





The
Trust Units are not "deposits" within the meaning of the Canada Deposit Insurance Corporation
Act (Canada) and are not insured under the provisions of that Act or any
other legislation.  Furthermore, the Trust is not a trust company and,
accordingly, is not registered under any trust and loan company legislation as
it does not carry on or intend to carry on the business of a trust
company.





Unitholders
Limited Liability





The
Trust Indenture provides that no Unitholders will be subject to any liability in
connection with the Trust or its obligations and affairs and, in the event that
a court determines Unitholders are subject to any such liabilities, the
liabilities will be enforceable only against, and will be satisfied only out of
the Trust's assets.  Pursuant to the Trust Indenture, the Trust will
indemnify and hold harmless each Unitholder from any costs, damages,
liabilities, expenses, charges and losses suffered by a Unitholder resulting
from or arising out of such Unitholder not having such limited
liability.


2007
      Annual Information Form – Vermilion Energy Trust
                46











The
Trust Indenture provides that all written instruments signed by or on behalf of
the Trust must contain a provision to the effect that such obligation will not
be binding upon Unitholders personally.  Personal liability may also
arise in respect of claims against the Trust that do not arise under contracts,
including claims in tort, claims for taxes and possibly certain other statutory
liabilities.  The possibility of any personal liability of this nature
arising is considered unlikely.





In
addition, the Income
Trust Liability
Act (Alberta) provides that the beneficiary of a trust that is (a)
created by a trust instrument governed by the laws of Alberta, and (b) a
reporting issuer as defined in the Securities Act (Alberta), is
not liable as a beneficiary for any act, default, obligation or liability of the
trustee.





The
operations of the Trust will be conducted, upon the advice of counsel, in such a
way and in such jurisdictions as to avoid as far as possible any material risk
of liability on the Unitholders for claims against the Trust.





Statutory
Remedies





The
Trust is not a legally recognized entity within the relevant definitions of the
Bankruptcy and Insolvency
Act (Canada), the Companies' Creditors Arrangement
Act (Canada) and in some cases, the Winding Up and Restructuring Act
(Canada).  As a result, in the event a restructuring of the Trust was
necessary, the Trust would not be able to access the remedies available
thereunder.  In the event of a restructuring, a holder of Trust Units
may be in a different position that a holder of unsecured indebtedness of a
corporation.





Variations
in Interest Rates and Foreign Exchange Rates





An
increase in interest rates could result in a significant increase in the amount
the Trust pays to service debt, potentially impacting Distributions to
Unitholders.





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





Mutual
Fund Trust Status





It is
intended that the Trust continue to qualify as a mutual fund trust for the
purposes of the Income Tax Act (Canada) (the "Tax Act").  The Trust
may not, however, always be able to satisfy any future requirement for the
maintenance of mutual fund trust status.  Should the status of the
Trust as a mutual fund trust be lost or successfully challenged by a relevant
tax authority, certain adverse consequences may arise for the Trust and
Unitholders.





The
Trust may take certain measures in the future to the extent the Trust believes
such measures are necessary to ensure the Trust maintains its status as a mutual
fund trust.  These measures could be adverse to certain holders of
Trust Units.





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 distributions to Unitholders
and affect the market price of the Trust Units.  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 distributions to Unitholders and affect the market
price of the Trust Units.





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 Distributable Cash.


2007
      Annual Information Form – Vermilion Energy Trust
                47











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
distributions to Unitholders may be reduced, suspended or
eliminated.





To the
extent that external sources of capital, including the issuance of additional
Trust Units, become limited or unavailable, Vermilion's ability to make the
necessary capital investments to maintain or expand its oil and natural gas
reserves will be impaired. To the extent the Trust is required to use cash flow
to finance capital expenditures or property acquisitions, the level of cash
available for distribution 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 corporations 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.





GAAP
Adjustments





GAAP
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 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 Trust Unit price.





Lower
oil and gas prices increase the risk of write-downs of Vermilion’s oil and gas
property investments.  Under GAAP, the net capitalized cost of oil and
gas properties may not exceed a "ceiling limit" that is based, in part, upon
estimated future net cash flows from reserves. If the net capitalized costs
exceed this limit, Vermilion must charge the amount of the excess against
earnings. If oil and natural gas prices decline, Vermilion’s net capitalized
cost may exceed this ceiling, ultimately resulting in a charge against its
earnings. While these write-downs would not affect cash flow, the charge to
earnings could be viewed unfavourably in the market.





Market
Accessibility





A
decline in Vermilion’s ability to market 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 distributions to
its Unitholders and the trading price of the Trust Units.




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 oil and 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 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
distributions to Unitholders.





ADDITIONAL
INFORMATION





Additional information relating to the
Trust may be found on SEDAR atwww.sedar.com.  Additional information
related to the remuneration and indebtedness of the directors and officers of
VRL, and the principal holders of Trust Units and Rights to purchase Trust Units
and securities authorized for issuance under the Trust's equity compensation
plans, where applicable, are contained in the information circular of the Trust
in respect of its most recent annual meeting of
Unitholders.  Additional financial information is provided in the
Trust's audited financial statements and management's discussion and analysis
for the year ended December 31, 2007.




2007
      Annual Information Form – Vermilion Energy Trust
                48








SCHEDULE
"A"


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




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




1.
            We
      have prepared an evaluation of the Company’s reserves data as at December
      31, 2007. The reserves data are estimates of proved reserves and probable
      reserves and related future net revenue as at December 31, 2007, 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.




We
carried out our evaluation in accordance with standards set out in the Canadian
Oil and Gas Evaluation Handbook (the "COGE Handbook") prepared jointly by the
Society of Petroleum Evaluation Engineers (Calgary Chapter) and the Canadian
Institute of Mining, Metallurgy & Petroleum (Petroleum
Society).




3.
            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 in the COGE
      Handbook.




4.
            The
      following table sets forth the estimated 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
      by us for the year ended December 31, 2007, and identifies the respective
      portions thereof that we have audited, evaluated and reviewed and reported
      on to the Company's board of
directors:




Location ofDescription
    and
                Reserves
                
                Net Present Value of Future Net
      RevenueIndependent
                Preparation Date
      of
                (Country or
      Foreign
                
                (before income taxes, 10% discount
      rate - $M)Qualified Reserves
      Evaluator
                Evaluation
      Report
                Geographic
      Area)
                
                Audited
                
                
                Evaluated
                
                
                Reviewed
                
                
                TotalGLJ Petroleum
      Consultants
                February 8,
      2008
                Australia
                
                
                -
                
                
                $
                703,127
                
                
                
                -
                
                
                $
                703,127GLJ Petroleum
      Consultants
                February 8,
      2008
                Canada
                
                
                -
                
                
                $
                621,013
                
                
                
                -
                
                
                $
                621,013GLJ Petroleum
      Consultants
                February 8,
      2008
                France
                
                
                -
                
                
                $
                1,156,569
                
                
                
                -
                
                
                $
                1,156,569GLJ Petroleum
      Consultants
                February 8,
      2008
                Netherlands
                
                
                -
                
                
                $
                284,877
                
                
                
                -
                
                
                $
                284,877TOTAL
                
                
                
                
                -
                
                
                $
                2,765,585
                
                
                
                -
                
                
                $
                2,765,585




5.
            In
      our opinion, the reserves data respectively evaluated by us have, in all
      material respects, been determined and are in accordance with the COGE
      Handbook.




6.
            We
      have no responsibility to update our reports referred to in paragraph 4
      for events and circumstances occurring after their respective preparation
      dates.




7.
            Because
      the reserves data are based on judgements regarding future events, actual
      results will vary and the variations may be material.  However,
      any variations should be consistent with the fact that reserves are
      categorized according to the probability of their
  recovery.







EXECUTED
as to our report referred to above:





GLJ
Petroleum Consultants Ltd., Calgary, Alberta, Canada, February 13,
2008




















“Jodi L.
Anhorn”





Jodi
L. Anhorn, M.Sc., P.Eng. Vice President









2007
      Annual Information Form – Vermilion Energy Trust
                49








SCHEDULE
"B"


REPORT
OF MANAGEMENT AND DIRECTORS ON OIL AND GAS DISCLOSURE (FORM
51-101F3)




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




Management
of Vermilion Energy Trust (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, 2007, 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,
2007.




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.  However, any
variations should be consistent with the fact that reserves are categorized
according to the probability of their recovery.







“Lorenzo
Donadeo”





Lorenzo
Donadeo, President and Chief Executive Officer








“Curtis
Hicks”





Curtis
W. Hicks, Executive Vice President and Chief Financial Officer








“Larry J.
Macdonald”





Larry
J. Macdonald, Director and Chairman of the Board








“William F.
Madison”





William
F. Madison, Director


2007
      Annual Information Form – Vermilion Energy Trust
                50











SCHEDULE
"C"


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 by reviewing:





A.
            The
      financial information that will be provided to the unitholders and
      others;





B.
            The
      systems of internal controls, management and the Board of Directors have
      established;





C.
            All
      audit processes; and





D.
            Primary
      responsibility for the financial reporting, information systems, risk
      management and internal controls of Vermilion Energy Trust (“Vermilion” or
      the “Trust”) is vested in management and is overseen by the
      Board.





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 independent1directors
      of Vermilion.





B.
            All
      Committee members shall be “financially literate”2and
      at least one member shall have "accounting or related financial
      expertise". 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.
            The
      Committee shall operate in a manner that is consistent with the Committee
      Guidelines outlined in Tab 8 of the Board
  Manual.





D.
            Vermilion’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.





E.
            The
      Committee has the authority to communicate with the 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
      unitholders.





F.
            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:





i)
            Review
      and recommend approval of Vermilion’s annual financial statements,
      MD&A and press release and report to the Board of Directors before the
      statements are approved by the Board of
  Directors;





ii)
            Review
      and recommend approve for release Vermilion’s quarterly financial
      statements, MD&A and press
release;








1
                
                Independence
      requirements, including those specifically for Audit Committee members,
      are described in the Appendix to Tab 6, Board Operating
      Guidelines.


2
              The
      Board has adopted the OSC definition of “financial literacy”, which is an
      individual who has the ability to read and understand a set of financialstatements that present a breadth
      and level of complexity of accounting issues that are generally comparable
      to the breadth and complexity of the issues thatcan reasonably be expected to be
      raised by the issuer's financial
  statements.
 2007
      Annual Information Form – Vermilion Energy Trust
                  51











SCHEDULE
"C"


TERMS
OF REFERENCE FOR THE AUDIT COMMITTEE (CONTINUED)





iii)
            Satisfy
      itself that adequate procedures are in place for the review of the public
      disclosure of financial information extracted or derived from Vermilion’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 discuss:





v)
            The
      appropriateness of accounting policies and financial reporting practices
      used by Vermilion;





vi)
            Any
      significant proposed changes in financial reporting and accounting
      policies and practices to be adopted by Vermilion;
  and





vii)
            Any
      new or pending developments in accounting and reporting standards that may
      affect Vermilion.





B.
            Risk
      Management, Internal Control and Information
  Systems





The
Audit Committee will review 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:





i)
            Review
      the Trust’s risk management controls and
  policies;





ii)
            Obtain
      reasonable assurance that the information systems are reliable and the
      systems of internal controls are properly designed and effectively
      implemented through 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 Unitholder approval, engagement and
      compensation of the external
auditor;





ii)
            Review
      the annual external audit plan, including but not limited to the
      following:





a)
            engagement
      letter;


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)
            proposed
      fees.





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


2007
      Annual Information Form – Vermilion Energy Trust
                52











SCHEDULE
"C"


TERMS
OF REFERENCE FOR THE AUDIT COMMITTEE (CONTINUED)





iv)
            Maintain
      oversight 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 Vermilion'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)
            Assess
      the performance and consider the annual appointment of external auditors
      for recommendation to the Board.





v)
            Review
      the auditor’s report on all material
  subsidiaries;





vi)
            Review
      and receive assurances on the independence of the external
      auditor;





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





viii)
            Meet
      periodically, and at least annually, with the external auditor without
      management present.





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 has 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 Trust’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 the Trust has relied upon any exemptions to the requirements for Audit
      Committees under regulatory
requirements.


2007
      Annual Information Form – Vermilion Energy Trust
                53











SCHEDULE
"C"


TERMS
OF REFERENCE FOR THE AUDIT COMMITTEE (CONTINUED)





E.
            Other





The
Committee shall:





i)
            Establish
      and periodically review implementation of procedures
  for:





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


b)
            The
      confidential, anonymous submission by employees of concerns regarding
      questionable accounting or auditing
matters;





ii)
            Review
      and approve the Trust’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
      the Trust’s Reclamation Fund (the
“Fund”)





a)
            Approve
      fund managers and monitor performance;
and


b)
            Review
      the forecast of costs and funding requirements and approve of
      contributions to the Fund.





v)
            Review
      material litigation and its impact on financial
  reporting;





vi)
            Review
      policies and procedures for the review and approval of officers’ expenses
      and perquisites; and





vii)
            Review
      the terms of reference for the Committee annually and make recommendations
      to the Board as required.





IV.
            ACCOUNTABILITY





A.
            The
      Committee Chair has the responsibility to make periodic reports to the
      Board, as requested, on financial matters relative to the
      Trust.





B.
            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.





2007
      Annual Information Form – Vermilion Energy Trust
                54
















































THIS
PAGE HAS BEEN LEFT INTENTIONALLY BLANK


2007
      Annual Information Form – Vermilion Energy Trust
                55














THIS
PAGE HAS BEEN LEFT INTENTIONALLY BLANK


2007
      Annual Information Form – Vermilion Energy Trust
                56











































































2800,
400 – 4th Avenue
S.W.


Calgary,
Alberta


T2P
0J3


403.269-4884
tel   -   403.264.6306 fax


1.866.895.8101
TOLL FREE


investor_relations@vermilionenergy.com










2007
      Annual Information Form – Vermilion Energy Trust