DBRS Finalizes BB (low) Rating of Vermilion Energy Inc. and Assigns Rating to New Issue

DBRS has today finalized the provisional Unsecured Notes rating previously assigned to Vermilion Energy Inc. (the Company) and rated the proposed issuance of $225 million of 6.50% Senior Unsecured Notes, maturing on February 10, 2016 (the Unsecured Notes), at BB (low) with a Stable trend. The issue is expected to settle on February 10, 2011. For details on the assigning of the provisional rating, please see the separate DBRS press release dated January 27, 2011.

The Unsecured Notes, supported by subsidiary guarantees, will rank equally with all of the Company’s other unsecured and unsubordinated indebtedness from time to time outstanding. However, these notes are structurally subordinated to Vermilion’s secured bank facility (Secured Facility). DBRS understands that the net proceeds from the captioned issuance will be used to make a non-permanent repayment of the Secured Facility and for general corporate purposes.

Notes:
All figures in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Oil & Gas Companies, which can be found on the DBRS website under Methodologies.