Vermilion Energy Inc. Announces Dividend Increase and 2014 Guidance

     Vermilion Energy Inc. Announces Dividend Increase and 2014 Guidance

PR Newswire

CALGARY, Nov. 7, 2013

CALGARY, Nov. 7, 2013 /PRNewswire/ - Vermilion Energy Inc. ("Vermilion", "We"
or "Our") (TSX: VET) (NYSE: VET) is pleased to announce that our Board of
Directors has approved a 7.5% increase in the monthly cash dividend to $0.215
CDN per share from the current level of $0.20 CDN per share. The increase is
expected to become effective for the January 2014 dividend payable on February
17, 2014^(1). This marks the third increase to our monthly dividend
(previously our distribution during our income trust era), and our second
annual increase.

With the continued strength  of our operations  and our expansive  opportunity 
base (including  our  recently  completed and  proposed  acquisitions  in  the 
Netherlands and Germany, respectively),  we are confident  we can achieve  our 
future growth  objectives  and continue  to  provide reliable  and  increasing 
dividends to investors. We believe our balance sheet remains well  positioned 
to execute  our  capital-efficient  growth-and-income model  and  fund  Corrib 
development through  to  first  gas  production,  while  remaining  within  an 
acceptable net  debt-to-fund  flows  from  operations^(2)  ratio.  Corrib  is 
expected to provide  a significant  increase to  our free  cash flow^(2)  upon 
first gas production.

Production and Capital Guidance

As discussed  in  our  third  quarter 2013  financial  and  operating  results 
released earlier  today, we  now  expect to  achieve average  2013  production 
volumes at the  upper end of  our guidance  range of 40,500  to 41,000  boe/d, 
including a  minor  amount  of  production  associated  with  our  Netherlands 
acquisition completed on October 10, 2013.  We also announced an increase  in 
our  anticipated  2013   development  capital  to   $530  million,   primarily 
attributable to the impact of a weaker Canadian dollar as compared to  foreign 
exchange rates at the time of our original guidance, a delay in the timing  of 
rig arrival for our Australian drill program (originally anticipated to  occur 
in late 2012) which shifted expenditures into 2013, and minor additions to our
capital work  scope  during 2013  (such  as  the addition  of  the  successful 
Champotran southern extension well in France).

For 2014, our Board of Directors has approved a development capital program of
approximately  $555  million,  including  expenditures  associated  with   our 
recently completed acquisition in the Netherlands and anticipated expenditures
related to our proposed acquisition in Germany. Key development  expenditures 
in 2014 include  increased drilling  activity in France  and the  Netherlands, 
drilling and completion of two horizontal Duvernay appraisal wells in  Canada, 
and the  continued  development  of  our  significant  Cardium  and  Mannville 
liquids-rich gas opportunities in Canada.

The 2014 capital program is anticipated to generate organic production  growth 
of 4% to 6% in 2014. Combined with our recent acquisition in the  Netherlands 
and the proposed acquisition in Germany  (assuming a January 31, 2014  close), 
we currently anticipate 2014  average daily production  of between 45,000  and 
46,000 boe/d, representing  annual production growth  of approximately 10%  to 
12% as compared to 2013. As discussed in our third quarter 2013 financial and
operating results,  our  recent  Netherlands  acquisition  is  anticipated  to 
deliver average daily production volumes of approximately 400 boe/d in  2014. 
In the case of our planned German acquisition, while we are targeting  closing 
on or before December 31, 2013, we  recognize that up to a one-month delay  in 
closing may potentially be required to  complete all acquisition steps and  to 
secure necessary approvals. Based on an estimated average production rate  of 
3,000 boe/d in  2013, and  the inclusion of  eleven months  of production  for 
2014, we are guiding to a  contribution of approximately 2,300 boe/d from  the 
German assets in 2014.

Capital Expenditures

Country                                            2013 Estimate  2014 Budget
                                                           ($mm)         ($mm)
Canada                                             $       235  $       240
France                                                     95         120
Netherlands                                                32          50
Australia                                                  78          40
                                                  $       440  $       450
Ireland                                                    90          90
Base Development Capital                           $       530  $       540
Netherlands acquisition*                                    -           5
Germany acquisition (proposed)**                            -          10
Total Development Capital                          $       530  $       555
Acquisition of assets in Netherlands*                      27           -
Acquisition of assets in Germany (estimated cash            -         170
cost at close, excluding final adjustments)**
Other                                                       3           -
Total Capital Expenditures                         $       560  $       725

*October 10, 2013 acquisition of Northern Petroleum Nederland B.V. (see
October 1, 2013 news release available on Company website at or at the Company's
profile on SEDAR at
**November 2013 proposed acquisition of 25% contractual participation interest
in consortium of exploration and production companies with interests in
Germany from GDF Suez E&P
Deutschland GmbH. The acquisition is expected to close prior to January 31,
2014. (see Nov 6, 2013 news release available on Company website at or at the
Company's profile on SEDAR at

Total Development Capital by Category

Category                                           2013 Estimate  2014 Budget
                                                           ($mm)         ($mm)
Drilling, completion, workovers and recompletions  $         290  $       260
Production equipment, facilities, new well                  225         260
equipment and tie-in (including Ireland)
Seismic, studies, land and other                             15          35
Total Development Capital                          $         530  $       555

In  Canada,  budgeted  2014  development  capital  of  $240  million  includes 
expenditures for  drilling or  participating  in an  estimated 36  (30.3  net) 
Cardium wells and eight  (5.7 net) Mannville  wells. Anticipated Cardium  and 
Mannville  expenditures  represent  approximately  80%  of  planned   Canadian 
development  expenditures.   Additional  development   expenditures   include 
drilling and completion of two horizontal Duvernay appraisal wells, as well as
drilling  and  appraisal  activities  targeting  other  Canadian  new  venture 

France is expected to be a  meaningful contributor to oil production and  fund 
flows  from  operations  growth  over   the  next  few  years.   Accordingly, 
development activities  will  expand  significantly  in  2014  in  our  France 
Business Unit. For 2014, allocated  development capital of $120 million  will 
include expenditures for a nine-well  drilling program with new wells  planned 
for our Champotran, Cazaux, Parentis and Tamaris fields. Further  development 
expenditures in 2014 will include an estimated 18-well workover program.

Our Netherlands Business Unit will also see a significant increase in activity
in 2014.  Planned  activities include  a  four-to-six well  drilling  program 
depending on the  arrival date  of the drilling  rig contracted  for our  2013 
drilling program. The drilling program will include our first new well on the
lands acquired in October 2013. The remainder of our planned $55 million 2014
capital program is budgeted for well workovers and facilities maintenance  and 

Both the France and Netherlands  development programs are designed to  achieve 
organic growth in each business unit while continuing to generate  significant 
free cash flow.

In 2013 we  drilled two  highly successful  sidetracks off  existing wells  in 
Australia. We do not expect to drill  again until 2015. As a result, we  are 
planning for a  $40 million capital  program in 2014,  which is a  significant 
reduction from our 2013 program.  Planned activities include preparation  and 
permitting activities in advance of our planned 2015 drilling program as  well 
as ongoing facilities maintenance, enhancement and refurbishment.

Tunnelling operations restarted at Corrib in Ireland on November 3, 2013 after
a suspension following a worksite fatality. We are planning for a $90 million
capital program  in 2014,  the  same amount  estimated  for our  2013  capital 
program. First gas production is now expected at approximately mid-2015.

Provided our acquisition in Germany is concluded as anticipated, we anticipate
capital expenditures of approximately $10 million, including participation  in 
one development well, in 2014.

About Vermilion

Vermilion is  an  oil-leveraged producer  that  adheres to  a  value  creation 
strategy through  the  execution  of full  cycle  exploration  and  production 
programs focused on the acquisition, exploration, development and optimization
of producing properties in Western Canada, Europe and Australia. Our  business 
model targets annual organic production growth of approximately 5% along  with 
providing reliable  and  increasing  dividends  to  investors.  Vermilion  is 
targeting  growth  in  production   primarily  through  the  exploitation   of 
conventional resource plays in Western Canada, including Cardium light oil and
liquids rich  natural gas,  the  exploration and  development of  high  impact 
natural gas opportunities in the Netherlands and through drilling and workover
programs in  France  and Australia.  Vermilion  also holds  an  18.5%  working 
interest in the  Corrib gas field  in Ireland. In  addition, Vermilion pays  a 
monthly dividend of Canadian $0.20 per  share, which provides a current  yield 
in excess of 4%. Management and directors of Vermilion hold approximately  8% 
of the  outstanding  shares  and  are  dedicated  to  consistently  delivering 
superior rewards for all stakeholders, featuring an 18-year history of  market 
outperformance. Vermilion trades  on the  Toronto Stock Exchange  and the  New 
York Stock Exchange under the symbol VET.

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

^(1) In accordance with applicable corporate law requirements (including
     solvency tests), formal declaration and payment of the January 2014
     dividend remains subject to final Board of Director approval prior to its
     declaration on January 15, 2014.
^(2) Fund flows from operations, net debt, free cash flow and netbacks are
     non-GAAP (as defined herein) measures that do not have standardized
     meanings prescribed by International Financial Reporting Standards
     ("IFRS" or, alternatively, "GAAP") and therefore may not be comparable
     with the calculations of similar measures for other entities. "Fund flows
     from operations" represents cash flows from operating activities before
     changes in non-cash operating working capital and asset retirement
     obligations settled. Management considers fund flows from operations and
     fund flows from operations per share to be key measures as they
     demonstrate Vermilion's ability to generate the cash necessary to pay
     dividends, repay debt, fund asset retirement obligations and make capital
     investments. Management believes that by excluding the temporary impact
     of changes in non-cash operating working capital, fund flows from
     operations provides a useful measure of Vermilion's ability to generate
     cash that is not subject to short-term movements in non-cash operating
     working capital. "Net debt" is the sum of long-term debt and working
     capital as presented in Vermilion's consolidated balance sheets. Net debt
     is used by management to analyze the financial position and leverage of
     Vermilion. The most directly comparable GAAP measure is long-term debt.
     "Free cash flow" represents fund flows from operations in excess of
     capital expenditures. Management considers free cash flow to be a key
     measure as it is used to determine the funding available for investing
     and financing activities, including payment of dividends, repayment of
     long-term debt, reallocation to existing business units, and deployment
     into new ventures. "Netbacks" are per boe and per mcf measures used in
     operational and capital allocation decisions. For relevant operating
     netback related disclosures please refer to the reconciliation contained
     on page 29 of management's discussion and analysis contained in
     Vermilion's Third Quarter 2013 Financial Report for the three and nine
     months ended September 30, 2013 available on SEDAR ( or at
     the company's website


Certain statements included or incorporated by reference in this press release
constitute forward-looking statements or  financial outlooks under  applicable 
securities  legislation.  Such  forward-looking  statements  or   information 
typically contain  statements  with  words such  as  "anticipate",  "believe", 
"expect", "plan", "intend", "estimate", "propose", or similar words suggesting
future  outcomes  or  statements   regarding  an  outlook.  Forward   looking 
statements or  information in  this press  release may  include, but  are  not 
limited to:

  *the effective date of the 7.5% increase in our monthly cash dividend;
  *our ability to achieve future growth objectives and continuing to provide
    reliable and growing dividends to investors;
  *our balance sheet strength;
  *the anticipated impact on projected free cash flow upon Corrib first gas
  *anticipated 2013 average annual production volumes and the amount of 2013
    development capital;
  *anticipated 2014 development capital program amount, including the
    location, type and impact of expenditures;
  *anticipated closing of the proposed acquisition in Germany
  *anticipated 2014 average daily production, including anticipated organic
    and overall annual production growth rates;
  *anticipated 2014 average daily production volumes from the Netherlands
    acquisition and the proposed Germany acquisition; and
  *anticipated impact of France activities on oil production and funds flow
    growth over the next few years, and France and Netherlands on organic
    growth in each region and free cash flow.

Although  Vermilion  believes   that  the  expectations   reflected  in   such 
forward-looking statements  or  information  are  reasonable,  undue  reliance 
should not be placed on forward looking statements because Vermilion can  give 
no assurance that such expectations will prove to be correct. Forward-looking
statements or information  are based  on current  expectations, estimates  and 
projections that involve a number of risks and uncertainties which could cause
actual results to differ  materially from those  anticipated by Vermilion  and 
described in the forward looking  statements or information. These risks  and 
uncertainties include but are not limited to:

  *the ability of management to execute its business plan;
  *the risks of the oil and gas industry, both domestically and
    internationally, such as operational risks in exploring for, developing
    and producing crude oil and natural gas and market demand;
  *risks and uncertainties involving geology of oil and natural gas deposits;
  *risks inherent in Vermilion'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 proposed
    acquisitions, exploration or development projects or capital expenditures;
  *Vermilion's ability to enter into or renew leases;
  *fluctuations in oil and natural gas prices, foreign currency exchange
    rates and interest rates;
  *health, safety and environmental risks;
  *uncertainties as to the availability and cost of financing;
  *the ability of Vermilion to add production and reserves through
    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 Vermilion; and
  *other risks and uncertainties described elsewhere in this document or in
    Vermilion's other filings with Canadian securities regulatory authorities.

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

SOURCE Vermilion Energy Inc.


Lorenzo Donadeo, President & CEO; Anthony Marino, Executive VP & COO; Curtis
W. Hicks, C.A., Executive VP & CFO; and/or Dean Morrison, Director Investor
TEL (403) 269-4884 | IR TOLL FREE 1-866-895-8101
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