<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>12
<FILENAME>ex99_9form40-f.txt
<DESCRIPTION>EXHIBIT 99.9
<TEXT>
                                                                    EXHIBIT 99.9
                                                                    ------------


[GRAPHIC OMITTED]
[LOGO - VERMILION ENERGY TRUST]


              PRESS RELEASE - FOR IMMEDIATE RELEASE AUGUST 12, 2003
                      SECOND QUARTER RESULTS, JUNE 30, 2003


Vermilion Energy Trust ("Vermilion") (TSX - VET.UN) is pleased to report
unaudited interim operating and financial results for the period ended June 30,
2003. These results include the consolidated results of Aventura Energy Inc.
("Aventura"), a 72.2% owned subsidiary. Where applicable, the results have been
segregated to reflect Aventura operations and those related to the Trust (the
"Trust"), as Aventura does not currently contribute any cash flow or production
to the generation of the Trust distributions.

Vermilion achieved the following highlights:

SECOND QUARTER HIGHLIGHTS

>    Achieved consolidated production of 26,288 boe/d, compared to 26,413 boe/d
     in the first quarter of 2003. Vermilion was able to maintain production
     through a combination of successful workover programs and well optimization
     efforts.

>    Maintained consistent distributions of $0.17 per unit per month. Based on
     the strong performance in the first half of the year, the current outlook
     on pricing, and forecast results for the balance of the year, Vermilion
     anticipates that it will be able to maintain its monthly distribution at
     $0.17 per unit through 2003.

>    The Trust generated cash flow of $38.5 million ($0.67 per unit) from
     production of 24,073 boe/d, consisting of 13,403 bbls/d of oil and NGL's
     and 64.0 mmcf/d of natural gas (1). This compares to a first quarter cash
     flow of $38.4 million from production of 24,132 boe/d.

>    Witnessed the trading of nearly 20 million units from April 1st to June
     30th 2003. The Trust has seen nearly 90% of its float trade hands since
     Vermilion began trading as a trust on January 24, 2003. Capital
     appreciation in the trading value of Vermilion units of 8.9% contributed to
     a total return for its unit holders of 13.1% in the second quarter alone.

>    Participated in the drilling of two exploration wells in Trinidad through
     the Trust's ownership in Aventura. The Saunders-1 well tested as a low
     inflow oil well and it has been suspended pending further evaluation to
     determine the potential effectiveness of a stimulation program. Baraka-1
     test results indicate potential wellhead deliverability of over 35 mmcf/d
     and over 1,000 bbls/d of high quality condensate.

(1) Although Aventura's production and financial results are consolidated in the
financial tables, these are not included as part of distributable funds for the
Trust's unitholders.

CONFERENCE CALL

Vermilion will discuss these results in a conference call to be held on
Wednesday, August 13, 2003. The conference call will begin at 10:00 a.m. EST
(8:00 a.m. MST). To participate, you may call toll free 1-800-814-3911 or
1-416-640-4127 (Toronto area).

The conference call will also be available on replay by calling 1-877-289-8525
or 1-416-640-1917 (Toronto area) using pass code 21010119 followed by the pound
"#" key. The replay will be available until midnight eastern time on August 20,
2003.


                                       1
--------------------------------------------------------------------------------
<PAGE>

<TABLE>
<CAPTION>
HIGHLIGHTS

                                                                     Three months ended                            Six months ended
                                                      Trust      Aventura  CONSOLIDATED          Trust     Aventura    CONSOLIDATED
                                                  Financial   Energy Inc.      JUNE 30,      Financial  Energy Inc.   JUNE 30, 2003
(unaudited)                                     Information            (3)         2003    Information          (3)
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                             <C>           <C>          <C>            <C>           <C>          <C>

FINANCIAL ($000 CDN. EXCEPT UNIT AND PER UNIT AMOUNTS)

Petroleum and natural gas revenues              $    78,274    $    2,640    $   80,914   $   163,208   $    5,719   $      168,927
Cash flow from operations                            38,489           893        39,382        76,887        2,233           79,120
  Per unit, basic (1)                                  0.67                        0.68          1.33                          1.37
Distributions (2)                                    25,891                      25,891        43,557                        43,557
  Per unit                                             0.51                        0.51          0.85                          0.85
  % cash flow distributed                               67%                         66%           57%                           55%
Capital expenditures                                  8,512         6,892        15,404        21,766       12,401           34,167
Acquisitions (dispositions)                              --            --            --         5,761       (6,896)          (1,135)
Debt, net of working capital (surplus)                                                        190,767       (7,327)         183,440
Trust units outstanding(1)
  Basic                                                                                                                  57,859,513
  Diluted                                                                                                                62,285,213
Weighted average trust units outstanding (1)
  Basic                                                                                                                  57,630,891
  Diluted                                                                                                                57,950,581
Unit trading
  High                                                                                                                  $     13.79
  Low                                                                                                                   $     11.12
  Close                                                                                                                 $     13.40

OPERATIONS

Production
  Crude oil (bbls/d)                                 11,292           305        11,597        11,164          324           11,488
  Natural gas liquids (bbls/d)                        2,111            --         2,111         2,034           --            2,034
  Natural gas (mcf/d)                                64,027        11,459        75,486        65,427       11,545           76,972
  Boe/d (6:1)                                        24,073         2,215        26,288        24,103        2,248           26,351
Average selling price
  Crude oil (per bbl, including hedging)        $     34.36    $    38.10         34.45         36.76        40.38            36.86
  Crude oil (per bbl, not including hedging)          36.74         38.10         36.77         41.38        40.38            41.35
  Natural gas liquids (per bbl)                       35.06            --         35.06         37.94           --            37.94
  Natural gas (per  mcf, including hedging)            6.22          1.52          5.51          6.33         1.61             5.62
  Natural gas (per mcf, not including hedging)         6.22          1.52          5.51          6.54         1.61             5.80
Netbacks per boe (6:1)
  Operations netback                                  20.56          8.06         19.51         22.36         9.76            21.29
  Cash flow netback                                   17.57          4.43         16.46         17.62         5.49            16.59
  Cash flow netback excl. reorg. costs                19.64         18.44
  Operating costs                                      5.79          3.75          5.62          5.62         2.78             5.38
  General and administration                    $      1.31    $     1.36          1.31          1.23         1.20             1.23
</TABLE>

(1) Includes trust units issuable for outstanding exchangeable shares based on
the period end exchange ratio

(2) Distributions are paid on issued trust units at each record date

(3) The Trust owns 72.2% of the outstanding shares of Aventura, necessitating
the consolidation of the results of the Trust and Aventura


                                       2
--------------------------------------------------------------------------------
<PAGE>

OPERATIONAL ACTIVITIES

The Trust's activities in the second quarter were focused on workovers,
recompletions and production optimization programs. Total capital expenditures
for the quarter were only $8.5 million, however production volumes were
maintained at fairly stable levels compared to the first quarter 2003. Note that
first quarter average volumes included approximately 400 boe/d that were
transferred to Clear Energy Inc. as part of the reorganization of Vermilion into
a royalty trust, effective January 22, 2003. A total of $4.3 million was spent
on workovers and recompletions in the second quarter 2003.

<TABLE>
<CAPTION>
PRODUCTION SUMMARY (6:1)
                             Three months ended June 30, 2003          Six months ended June 30, 2003
---------------------------------------------------------------------------------------------------------
                               Oil &     Natural                      Oil &    Natural
                                NGLs       Gas        TOTAL            NGLs      Gas       TOTAL
                              (bbls/d)  (mmcf/d)     (BOE/D)         (bbls/d)  (mmcf/d)   (BOE/D)      %
---------------------------------------------------------------------------------------------------------
<S>                           <C>       <C>          <C>             <C>       <C>        <C>        <C>
VERMILION ENERGY TRUST
    Canada                      7,296     62.66       17,739           7,152     64.03    17,824      68
    France                      6,107      1.36        6,334           6,046      1.39     6,279      24
---------------------------------------------------------------------------------------------------------
    Total                      13,403     64.02       24,073          13,198     65.42    24,103      92
---------------------------------------------------------------------------------------------------------
AVENTURA ENERGY INC.
    Trinidad                      305     11.46        2,215             324     11.55     2,248       8
---------------------------------------------------------------------------------------------------------
CONSOLIDATED                   13,708     75.48       26,288          13,522     76.97    26,351     100
=========================================================================================================
</TABLE>

Second quarter production in Canada averaged 7,296 bbls/d of oil and NGL's and
62.7 mmcf/d of natural gas compared to 7,005 bbls/d and 65.4 mmcf/d in the first
quarter. Vermilion also produced 6,334 boe/d from its properties in France,
compared to 6,224 boe/d in the first quarter. Since the beginning of the year,
the Trust has participated in the drilling of only 3.0 wells (1.6 net). A more
active second half drilling program combined with the ongoing workover program
should maintain the stability of Vermilion's production in both Canada and
France through the second half of 2003.

In France, a selective acid stimulation of the Parentis 205 well in the
Aquitaine Basin resulted in an initial production gain of 400 bbls/d and a
stabilized gain of over 100 bbls/d. The stabilized production addition was
achieved at a cost below $7,000 per daily barrel. Based on the successful
fracture treatment of a well in the Champotran field in late 2002, two
additional fracture treatments are scheduled for wells in this Paris Basin field
in the third quarter of 2003. The working interest in these wells is 100%. A
strong program of workovers and new drills should result in stable to higher
production from France in the second half of the year.

<TABLE>
<CAPTION>
                                         THREE MONTHS ENDED JUNE 30, 2003        SIX MONTHS ENDED JUNE 30, 2003
DRILLING ACTIVITY (# OF WELLS)                GROSS             (NET)              GROSS             (NET)
-------------------------------------------------------------------------------------------------------------
<S>                                          <C>               <C>                <C>                <C>
CANADA
    Oil                                         0                 0.0                0                  0.0
    Gas                                         2                (0.6)               3                 (1.6)
    D&A                                         0                 0.0                0                  0.0
-------------------------------------------------------------------------------------------------------------
TOTAL                                           2                (0.6)               3                 (1.6)
=============================================================================================================
FRANCE
    Oil                                         0                 0.0                0                  0.0
    Gas                                         0                 0.0                0                  0.0
    D&A                                         0                 0.0                0                  0.0
-------------------------------------------------------------------------------------------------------------
TOTAL                                           0                 0.0                0                  0.0
=============================================================================================================
COMBINED
    Oil                                         0                 0.0                0                  0.0
    Gas                                         2                (0.6)               3                 (1.6)
    D&A                                         0                 0.0                0                  0.0
-------------------------------------------------------------------------------------------------------------
TOTAL                                           2                (0.6)               3                 (1.6)
=============================================================================================================
</TABLE>


                                       3
--------------------------------------------------------------------------------
<PAGE>

In addition to its operational activity, Vermilion had 10 wells drilled on its
lands to date in 2003 (seven wells in the second quarter) through farm-out
arrangements. This additional drilling activity resulted in one oil well, one
gas well, six wells waiting on completion and two dry and abandoned. The Trust
will continue to pursue activity on its undeveloped land base by third parties
as a means of drilling locations which are not compatible with Vermilion's
capital development strategy and creating economic value in the form of
overriding royalty income.

FINANCIAL

The Trust generated cash flow of $38.5 million in the second quarter ($0.67 per
unit), compared to $38.4 million ($0.67 per unit) in the first quarter. The
Trust's distributions in the second quarter totalled $25.9 million or $0.51 per
unit, yielding a payout ratio of approximately 67% of cash flow. Vermilion's
earnings for the second quarter climbed to $32.6 million from a loss of $0.7
million in the first quarter, which was impacted by reorganization expenses,
while the Trust benefited in the second quarter from lower tax rates for the oil
and gas industry announced in the last federal budget. Capital expenditures for
the Trust in the second quarter totalled $8.5 million. The Trust's total debt,
net of working capital (assignable to the Trust) at the end of the period was
$191 million.

<TABLE>
<CAPTION>
CAPITAL EXPENDITURES ($000'S)

                                                   Three Months Ended June 30, 2003             Six Months Ended June 30, 2003
------------------------------------------------------------------------------------------------------------------------------------
                                                  Trust       Aventura                        Trust        Aventura
                                                 Assets    Energy Inc.   Consolidated        Assets     Energy Inc.    Consolidated
------------------------------------------------------------------------------------------------------------------------------------
<S>                                            <C>         <C>           <C>                <C>         <C>            <C>
Land                                           $    328       $     --       $    328       $    653       $     --        $    653
Seismic                                              66             --             66          1,120             --           1,120
Drilling and completion                           1,905             --          1,905          4,307             --           4,307
Production equipment and                          1,811             --          1,811          5,345             --           5,345
facilities
Workovers                                         4,303             --          4,303          6,565             --           6,565
Trinidad                                             --          6,892          6,892          1,804         12,401          14,205
Other                                                99             --             99          1,972             --           1,972
------------------------------------------------------------------------------------------------------------------------------------
                                                  8,512          6,892         15,404         21,766         12,401          34,167
Property acquisitions
(dispositions)                                       --             --             --          5,761         (6,896)         (1,135)
------------------------------------------------------------------------------------------------------------------------------------
                                               $  8,512       $  6,892       $ 15,404       $ 27,527       $  5,505        $ 33,032
====================================================================================================================================
</TABLE>

AVENTURA ENERGY INC.

Aventura drilled two exploration wells in Trinidad. The Company completed and
tested the Saunders-1 exploration well, located 3 km to the southwest of the
Carapal Ridge-1 discovery well during the second quarter. As reported in
Aventura's first quarter report, the lower sub-thrust target was abandoned,
however well logs and drilling data suggested a hydrocarbon column in the main
Herrera reservoir target. Test results on the potential pay zone of the
Saunders-1 indicate a low permeability reservoir with water in the lower third
of the column, while the upper two-thirds produced low rates of 32 degree API
oil and water. The well has been suspended pending further evaluation to
determine the potential effectiveness of a stimulation program.

The Baraka-1 exploration well, 3 km to the northeast of Carapal Ridge-1, has
been drilled and cased to a total depth of 9,375 feet. This well, which was
drilled on a separate structure, tested 22 mmcf/d and 660 bbls/d of 58 degree
API condensate from over 300 feet of perforations in a gross hydrocarbon column
extending over 600 feet. No signs of pressure depletion or formation water were
evident during this extended 48-hour flow test. Preliminary indications suggest
ultimate well deliverability exceeding 35 mmcf/d of natural gas and 1,000 bbls/d
of high quality condensate. With Carapal Ridge-1 and Baraka-1, Aventura has now
drilled the two largest discoveries onshore Trinidad in the last 40 years.


                                        4
--------------------------------------------------------------------------------
<PAGE>

Aventura continues to negotiate a renewal of its short-term, 20 mmcf/d natural
gas contract with Petrotrin and is close to finalizing an agreement that will
cover sales through late 2005. Negotiations are also advancing on a potential 60
mmcf/d long-term gas contract which would begin in late 2005. These long-term
contracts will enable Aventura to provide shareholders with a positive source of
earnings and cash flow over the life of the asset. Aventura's efforts to
maximize the value of these contracts are ongoing.

OUTLOOK

Vermilion's management is pleased by the performance of the Trust's asset base
in the second quarter. Through the focused efforts of its enthusiastic staff,
production rates remained steady, despite limited capital expenditures and a
virtual absence of drilling. Activity levels are expected to pick up in the
second half of the year, with three new wells scheduled for France and eleven
new wells scheduled for Canada. The Trust also hopes to accelerate its farm out
activity, which could add further to the value of its existing asset base.

During the third quarter, the Trust's production and cash flow will be somewhat
negatively impacted by a severe storm which occurred in the Acquitaine Basin in
France and as a result of the shut-in at the Trust's Shane property as described
in a press release issued August 6, 2003. In France, production is being fully
restored after winds reached as high as 150 kilometres per hour causing
electrical line ruptures and power outages. At Shane, approximately 1,600 boe/d
has been shut-in pending resolution of a production allocation issue. These
disruptions, while important, are not permanent and will not affect the Trust's
ability to maintain distributions at the current level of $0.17 per month
through the balance of 2003.

Vermilion has established that non-residents own approximately 39% of its issued
and outstanding units (not including exchangeables) and 35% if the exchangeable
shares are included. Pursuant to Vermilion's Trust Indenture, non-resident
unitholders may not own more than 50% of total outstanding trust units. The
Trust will continue to ensure that it complies with all requirements under its
Trust Indenture, including Canadian ownership requirements.





                                       5
--------------------------------------------------------------------------------
<PAGE>

MANAGEMENT'S DISCUSSION AND ANALYSIS

THE SIX MONTHS ENDED JUNE 30, 2003 REPRESENTS THE FIRST HALF YEAR OF VERMILION'S
OPERATION AS A TRUST. AS VERMILION ENERGY TRUST WAS CREATED THROUGH THE
RE-ORGANIZATION OF VERMILION RESOURCES LTD., THE HISTORICAL RESULTS OF VERMILION
RESOURCES LTD. WILL REPRESENT THE HISTORICAL RESULTS OF THE TRUST FOR
COMPARATIVE PURPOSES.

Oil and gas prices for the first half of 2003 were strong in comparison with the
first half of 2002. The WTI reference price for oil averaged $31.39 US per bbl
for the six month period, Dated Brent was $28.77 US per bbl and AECO reference
price for gas was $7.57 Cdn per mcf. This compares to $23.95 per bbl for WTI,
$23.09 per bbl for Brent and $3.73 per mcf, Cdn AECO for the first six months of
2002. These year over year price increases are the main drivers behind the
increase in netbacks in 2003 as compared to 2002. In 2003, Vermilion's operating
netback equalled $21.29 per boe, up 15% over the $18.53 reported for the first
six months of 2002. The cash flow netback of $16.59 per boe for the first half
was also up 15% over the $14.42 recorded in 2002. 2003 second quarter operating
and cash flow netbacks totalled $19.51 and $16.46 per boe, respectively. These
compare to 2002 second quarter operating and cash flow netbacks equal to $18.39
and $14.24 per boe, respectively. In addition, the 2003 cash flow netbacks were
reduced by $1.85 per boe for the half as a result of the impact of the cash
costs incurred in the re-organization of Vermilion into a trust.

Total revenues for the first half of 2003 were $168.9 million compared to $133.5
million for the first half of 2002 and $80.9 million in the second quarter of
2003 compared to $68.9 million for the corresponding reporting period in 2002.
Vermilion's combined crude oil & NGL price was $40.84 per bbl for the first half
of 2003, an increase of 25% over the $32.74 per bbl reported for the first half
of 2002. The second quarter price was $36.51 per bbl compared to $33.29 per bbl
a year ago. The natural gas price realized in the first half of 2003 was $5.80
per mcf compared to $4.09 per mcf realized a year ago, a 42% year-over-year
increase. The second quarter price of $5.51 per mcf was 27% greater than the
$4.34 per mcf for the same period of 2002. Tempering these increases was the
impact of Vermilion's hedging program, whereby prices were reduced by $2.47 per
boe on a combined basis for the six month period ended June 30, 2003, compared
to a hedging gain of $0.36 per boe in the first half of 2002. Gas prices were
reduced on average by $0.18 per mcf over the first half of 2003, with second
quarter prices not impacted by the Trust's natural gas collar.

Vermilion continues to manage its risk exposure through prudent commodity and
currency hedging strategies. Natural gas contracts for 22.8 mmcf/d remain in
place for the calendar year of 2003 with various price structures resulting in
an average floor price of $5.26 CDN per mcf. Currently, the Trust has hedged 5.4
mmcf/d of its 2004 natural gas production with various price structures,
resulting in an average floor price of $5.39 per mcf. On the crude oil side,
Vermilion has hedges covering 5,550 bbls/d at $24.74 US for the remainder of
2003; 4,500 bbls/d in 2004 at $24.39 US; and 1,000 bbls/d in 2005 at $24.28 US,
all referenced in WTI equivalent prices.

Vermilion has Canadian/US dollar currency hedges in place covering two-thirds of
its oil hedge positions for 2003 at approximately $1.59 US per Canadian dollar,
or $0.63 CDN per US dollar.

Total royalties, net of ARTC, increased to $8.75 per boe or 23.1% of sales in
the first half 2003, compared with $6.37 per boe, or 22.1% of sales in the first
half of 2002. The quarter over quarter numbers were $8.69 per boe in 2003 and
$6.59 per boe for the same period in 2002. The increase is due directly to the
increase in prices explained above as royalties are price sensitive in Canada
and calculated as a percentage of revenue. In France, royalties for the most
part are calculated on a unit of production basis and do not react to price
changes.

Operating costs increased to $5.38 per boe in 2003 from $4.34 per boe in the
first half of 2002. Lifting costs for the second quarter of the year were $5.62
in comparison to $4.69 for the second quarter of 2002. In Canada, processing
costs in the Peace River Arch area, workovers designed to increase production
and increased power costs resulting from the strong gas prices in the first half
have contributed to the year over year increase.


                                       6
--------------------------------------------------------------------------------
<PAGE>

In France, power costs continue to rise and the strengthening Euro also
contributed to the increase in operating costs when converted to Canadian
dollars.

General and administrative expenses for the year increased to $1.23 per boe from
$1.10 per boe in the first half of 2002. The second quarter number for 2003 of
$1.31 is increased over the second quarter 2002 number of $1.15 by $0.16. The
increase is due to the increased costs of operating a Trust.

Reorganization costs of $25.6 million relate to Vermilion's decision to convert
to a trust. Included in this amount are $8.8 million in transaction costs, which
include investment banking fees as well as all accounting and legal fees,
related to the conversion. Also included in this amount is the value of trust
units issued in exchange for the cancellation of all outstanding employee
options. The value of the trust units issued totalled $16.8 million. All of
these costs were incurred in the first quarter of 2003.

Interest expense increased to $0.87 per boe for the first half of 2003 from
$0.46 per boe for the corresponding period in 2002 as a result of higher average
debt levels. The quarter over quarter increase was $0.42 per boe from $0.48 per
boe in the second quarter of 2002 to $0.90 in 2003.

Depletion and depreciation expenses increased from $9.56 per boe in the first
half of 2002 to $10.02 per boe in 2003. The quarter over quarter numbers were
$10.11 in the second quarter of 2003 as compared to $9.94 a year ago.

The Trust's current tax provision has decreased to $0.75 per boe in the first
half of 2003 and $0.83 in the second quarter from $2.54 per boe in the first
half of 2002 and $2.54 in the second quarter. The current provision is based on
an estimated $6 million tax liability in France for the year, while in Canada,
it is anticipated that there will be no current taxes due as a function of the
conversion to an income trust. A reduction in tax rates for Canadian resource
activities resulted in a recovery of future income taxes, which was recorded in
the second quarter pushing earnings to $32.6 million and $31.9 for the first
half. Adding to this recovery is the taxable portion of distribution payments
made to unitholders. In the Trust's structure, payments are made between the
operating company and the Trust transferring both income and future income tax
liability to the unitholder. Therefore it is the opinion of management that no
cash income taxes in Canada are expected to be paid by the operating company in
the future, and as such, the future income tax liability recorded on the balance
sheet related to Canadian operations will be recovered through earnings over
time.

Foreign exchange loss increased to $0.64 per boe and $0.99 per boe in the first
half and quarter respectively from $0.02 in the six months ended 2002 and a gain
of $0.01 per boe in the second quarter 2002. The increased loss relates to a
loss on working capital held in a foreign currency in our France operations
combined with Aventura's loss on its working capital related to its operations
in Trinidad.

Capital spending for the first half totalled $33.0 million including $5.8
million for the acquisition of a royalty interest at Bottrel, Alberta from
Aventura. This acquisition was negotiated as part of the restructuring and
occurred immediately following the creation of the Trust. This compares to $79.0
million spent in the first half of 2002, $31.0 million of which was for the
corporate acquisition of Artemis Energy Limited. The capital for the first half
of 2003 was funded entirely through cash flow and was primarily spent on
facilities, tie-ins and workovers as well as Aventura's capital program in
Trinidad.

Vermilion's debt (net of working capital) on June 30, 2003 was $183.4 million.
Early in 2003, Vermilion negotiated the terms of an amended credit facility with
its banking syndicate to provide a $260 million credit facility. The amended
loan facility remains with the same syndicate of lenders with no change to the
terms and security provisions. The facility structure is comprised of a one year
revolving period with a one year term to follow with a final settlement payment
required at the end of the second year.


                                       7
--------------------------------------------------------------------------------
<PAGE>

<TABLE>
<CAPTION>
NETBACKS (6:1)

                                                                                                         THREE MONTHS    SIX MONTHS
                                                                                                                ENDED         ENDED
                                                                                                             JUNE 30,      JUNE 30,
                                   THREE MONTHS ENDED JUNE 30, 2003       SIX MONTHS ENDED JUNE 30, 2003         2002          2002
                                 -------------------------------------------------------------------------------------------------
                                     Oil &      Natural                    Oil &     Natural
                                      NGLs          Gas       TOTAL         NGLs         Gas       TOTAL        Total        Total
                                     $/bbl        $/mcf       $/BOE        $/bbl       $/mcf       $/BOE        $/boe        $/boe
----------------------------------------------------------------------------------------------------------------------------------
<S>                              <C>          <C>          <C>         <C>          <C>         <C>        <C>           <C>
TRUST FINANCIAL INFORMATION
CANADA
Price                            $   41.66    $    6.25    $  39.23    $   44.96    $   6.57    $  41.63   $    29.14    $   27.64
Hedging gain (loss)                  (2.32)          --       (0.96)       (4.13)      (0.21)      (2.42)       (0.10)        0.18
Royalties (net)                      (8.99)       (2.16)     (11.31)      (10.13)      (1.99)     (11.20)       (7.38)       (7.11)
Lifting costs                        (5.62)       (0.86)      (5.36)       (5.87)      (0.77)      (5.12)       (3.80)       (3.62)
-----------------------------------------------------------------------------------------------------------------------------------
Operating netback                $   24.73    $    3.23    $  21.60    $   24.83    $   3.60    $  22.89   $    17.86    $   17.09
-----------------------------------------------------------------------------------------------------------------------------------
FRANCE
Price                            $   30.28    $    4.66    $  30.19    $   35.99    $   5.19    $  35.81   $    31.98    $   32.78
Hedging gain (loss)                  (1.63)          --       (1.57)       (3.64)       -          (3.51)       (0.24)        0.91
Royalties (net)                      (4.04)       (0.24)      (3.95)       (4.50)      (0.24)      (4.39)       (4.01)       (4.04)
Lifting costs                        (6.69)       (2.65)      (7.02)       (6.74)      (2.51)      (7.05)       (7.60)       (6.58)
-----------------------------------------------------------------------------------------------------------------------------------
Operating netback                $   17.92    $    1.77    $  17.65    $   21.11    $   2.44    $  20.86   $    20.13    $   23.07
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL TRUST
Price                            $   36.47    $    6.22    $  36.85    $   40.85    $   6.54    $  40.11   $    29.80    $   28.88
Hedging gain (loss)                  (2.01)          --       (1.12)       (3.91)      (0.21)      (2.70)       (0.13)        0.36
Royalties (net)                      (6.73)       (2.12)      (9.38)       (7.55)      (1.95)      (9.43)       (6.59)       (6.37)
Lifting costs                        (6.11)       (0.90)      (5.79)       (6.27)      (0.81)      (5.62)       (4.69)       (4.34)
-----------------------------------------------------------------------------------------------------------------------------------
Operating netback                $   21.62    $    3.20    $  20.56    $   23.12    $   3.57    $  22.36   $    18.39    $   18.53
-----------------------------------------------------------------------------------------------------------------------------------
AVENTURA FINANCIAL
Price                            $   38.10    $    1.52    $  13.09    $   40.38    $   1.61    $  14.06           --           --
Hedging gain (loss)                     --           --          --           --          --          --           --           --
Royalties (net)                      (3.29)       (0.16)      (1.28)       (4.26)      (0.18)      (1.52)          --           --
Lifting costs                           --        (0.73)      (3.75)        -          (0.54)      (2.78)          --           --
-----------------------------------------------------------------------------------------------------------------------------------
Operating netback                $   34.81    $    0.63    $   8.06    $   36.12    $   0.89    $   9.76           --           --
-----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED
Price                            $   36.51    $    5.51    $  34.84    $   40.84    $   5.80    $  37.89   $    29.80    $   28.88
Hedging gain (loss)                  (1.96)          --       (1.02)       (3.81)      (0.18)      (2.47)       (0.13)        0.36
Royalties (net)                      (6.65)       (1.82)      (8.69)       (7.47)      (1.68)      (8.75)       (6.59)       (6.37)
Lifting costs                        (5.97)       (0.87)      (5.62)       (6.12)      (0.77)      (5.38)       (4.69)       (4.34)
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING NETBACK                $   21.93    $    2.82    $  19.51    $   23.44    $   3.17    $  21.29    $   18.39    $   18.53
-----------------------------------------------------------------------------------------------------------------------------------
General and administrative                                    (1.31)                               (1.23)       (1.15)       (1.10)
Reorganization costs                                             --                                (1.85)          --           --
Interest                                                      (0.90)                               (0.87)       (0.48)       (0.46)
Foreign exchange                                              (0.01)                                -            0.02        (0.01)
Current and capital taxes                                     (0.83)                               (0.75)       (2.54)       (2.54)
-----------------------------------------------------------------------------------------------------------------------------------
CASH FLOW NETBACK                                          $  16.46                             $  16.59   $    14.24    $   14.42
-----------------------------------------------------------------------------------------------------------------------------------
Depletion and depreciation                                   (10.11)                              (10.02)       (9.94)       (9.56)
Future income taxes                                            8.36                                 4.38        (0.24)       (0.47)
Deferred financing charges                                    (0.03)                               (0.05)       (0.08)       (0.08)
Foreign exchange                                              (0.99)                               (0.64)        0.01        (0.02)
Non-controlling interest                                      (0.05)                               (0.03)        0.01         0.03
Trust units issued                                               --                                (3.53)          --           --
-----------------------------------------------------------------------------------------------------------------------------------
EARNINGS NETBACK                                           $  13.64                             $   6.70   $     4.00    $    4.32
===================================================================================================================================
</TABLE>


                                       8
--------------------------------------------------------------------------------
<PAGE>

CONSOLIDATED BALANCE SHEETS
($000'S, UNAUDITED)
                                                    JUNE 30,        December 31,
                                                        2003               2002
--------------------------------------------------------------------------------
ASSETS

Current
       Cash and cash equivalents                   $  28,881          $  32,562
       Accounts receivable                            41,399             56,582
       Crude oil inventory                             3,293              3,207
       PREPAID EXPENSES AND OTHER                      4,568              4,699
--------------------------------------------------------------------------------
                                                      78,141             97,050

Deferred financing costs                                 203                435
Deferred reorganization costs                             --              2,324
Reclamation fund                                         555                 --
CAPITAL ASSETS                                       687,211            711,902
--------------------------------------------------------------------------------
                                                   $ 766,110          $ 811,711
================================================================================

LIABILITIES AND UNITHOLDERS' EQUITY

Current
       Accounts payable and accrued liabilities    $  45,654          $  79,817
       Distributions payable to unitholders            8,163                 --
       INCOME TAXES PAYABLE                            3,573             10,977
--------------------------------------------------------------------------------
                                                      57,390             90,794

Long-term debt (Note 5)                              204,191            193,025
Provision for future site restoration                 12,649             11,169
FUTURE INCOME TAXES                                  155,656            171,094
--------------------------------------------------------------------------------
                                                     429,886            466,082
--------------------------------------------------------------------------------
NON-CONTROLLING INTEREST                              29,436             21,321
--------------------------------------------------------------------------------

Unitholders' Equity
       Unitholders' capital (Note 7)                 122,213            140,557
       Exchangeable shares (Note 7)                   12,452                 --
       Accumulated earnings                          215,680            183,751
       ACCUMULATED CASH DISTRIBUTIONS                (43,557)                --
--------------------------------------------------------------------------------
                                                     306,788            324,308
--------------------------------------------------------------------------------
                                                   $ 766,110          $ 811,711
================================================================================



                                       9
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF EARNINGS AND ACCUMULATED EARNINGS
($000's, except unit and per unit amounts, unaudited)

                                                              Three Months Ended                      Six Months Ended
                                                     JUNE 30             June 30           June 30             June 30
                                                        2003                2002              2003                2002
----------------------------------------------------------------------------------------------------------------------
<S>                                               <C>                <C>                 <C>                <C>
Revenue:
     Petroleum and natural gas revenue            $   80,914         $    68,854         $   168,927        $  133,467
     Royalties (net)                                  20,795              14,838              41,750            28,596
----------------------------------------------------------------------------------------------------------------------
                                                      60,119              54,016             127,177           104,871
----------------------------------------------------------------------------------------------------------------------
Expenses:
     Production                                       13,450              10,970              25,655            19,883
     Interest                                          2,208               1,300               4,398             2,469
     General and administration                        3,140               2,683               5,857             5,041
     Reorganization costs (Note 3)                        --                  --              25,628                --
     Foreign exchange loss (gain)                      2,390                 (46)              3,096               158
     Depletion and depreciation                       24,179              23,263              47,788            43,854
----------------------------------------------------------------------------------------------------------------------
                                                      45,367              38,170             112,422            71,405
----------------------------------------------------------------------------------------------------------------------
Earnings before income taxes and other item           14,752              15,846              14,755            33,466

Income taxes (recovery):
     Future (Note 6)                                 (20,003)                554             (20,900)            2,174
     Current                                           1,873               5,658               3,319            11,222
     Capital                                             111                 280                 254               415
----------------------------------------------------------------------------------------------------------------------
                                                     (18,019)              6,492             (17,327)           13,811
----------------------------------------------------------------------------------------------------------------------
Other item:
     Non-controlling interest                            122                 (15)                153              (120)
----------------------------------------------------------------------------------------------------------------------
Net earnings                                          32,649               9,369              31,929            19,775
Accumulated earnings, beginning of period            183,031             153,303             183,751           142,897
----------------------------------------------------------------------------------------------------------------------
Accumulated earnings, end of period               $  215,680         $   162,672         $   215,680        $  162,672
----------------------------------------------------------------------------------------------------------------------
Net earnings per Trust Unit:
     Basic                                        $     0.57         $      0.17         $      0.55        $     0.36
     Diluted                                      $     0.57         $      0.17         $      0.55        $     0.35
----------------------------------------------------------------------------------------------------------------------
Weighted Average Trust Units Outstanding
     Basic                                        57,633,556          55,835,671          57,630,891        55,714,837
     Diluted                                      57,634,749          56,911,005          57,950,581        56,782,449
======================================================================================================================
</TABLE>


                                       10
--------------------------------------------------------------------------------
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS
(000'S, UNAUDITED)

                                                                     Three Months Ended                  Six Months Ended
                                                              JUNE 30,         June 30,         JUNE 30,         June 30,
                                                                  2003             2002             2003             2002
--------------------------------------------------------------------------------------------------------------------------
<S>                                                          <C>              <C>              <C>              <C>
Cash provided by (used in):
OPERATING
     Net earnings                                            $  32,649        $   9,369        $  31,929        $  19,775
     Items not affecting cash:
       Depletion and depreciation                               24,179           23,263           47,788           43,854
       Unrealized foreign exchange loss (gain)                   2,370              (20)           3,076               92
       Amortized deferred financing costs                           65              176              257              348
       Non-controlling interest                                    122              (15)             153             (120)
       Trust units issued on cancellation of
         employee stock options                                     --               --           16,817               --
       Future income taxes                                     (20,003)             554          (20,900)           2,174
--------------------------------------------------------------------------------------------------------------------------
     Cash flow from operations                                  39,382           33,327           79,120           66,123
     Site restoration costs incurred                              (221)              --             (245)            (158)
     Changes in non-cash working capital                         2,092            5,199          (26,314)         (16,505)
--------------------------------------------------------------------------------------------------------------------------
                                                                41,253           38,526           52,561           49,460
--------------------------------------------------------------------------------------------------------------------------
INVESTING
     Disposition (acquisition) of capital assets                    --           (1,606)           1,135           (3,730)
     Drilling and development of petroleum and
       natural gas properties                                  (15,404)         (16,248)         (34,167)         (44,308)
     Corporate acquisition                                          --               --               --          (21,915)
     Restricted cash held for acquisition                           --          (66,348)              --          (66,348)
     Contributions to reclamation fund, net                       (150)              --             (555)              --
--------------------------------------------------------------------------------------------------------------------------
                                                               (15,554)         (84,202)         (33,587)        (136,301)
--------------------------------------------------------------------------------------------------------------------------
FINANCING
     Increase (decrease) in long-term debt                      (5,986)          42,271           11,165           85,621
     Increase in deferred charges                                  (25)             (75)             (25)             (75)
     Issue of Common shares for cash, net
       of share issue costs                                         --              607            1,201            4,252
     Distribution reinvestment plan                                971               --              971               --
     Cash acquired on shares issued by
       subsidiary, net of share issue costs                         --            2,777              203            2,827
     Cash distributions                                        (26,586)              --          (35,394)              --
--------------------------------------------------------------------------------------------------------------------------
                                                               (31,626)          45,580          (21,879)          92,625
--------------------------------------------------------------------------------------------------------------------------
     Foreign exchange gain (loss) on cash
       held in a foreign currency                                 (308)             310             (776)             176
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash                                 (6,235)             214           (3,681)           5,960
Cash, beginning of period                                       35,116           12,462           32,562            6,716
--------------------------------------------------------------------------------------------------------------------------
Cash, end of period                                             28,881           12,676           28,881           12,676
==========================================================================================================================
Cash payments:
     Interest                                                $   2,225        $     795        $   5,505        $   2,186
     Taxes                                                   $   1,859        $     346        $  22,322        $   7,159
--------------------------------------------------------------------------------------------------------------------------
</TABLE>



                                       11
--------------------------------------------------------------------------------
<PAGE>

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002, UNAUDITED
(000'S, EXCEPT UNIT AND PER UNIT AMOUNTS)

1.   BASIS OF PRESENTATION

     Vermilion Energy Trust (the "Trust") was established on January 22, 2003,
     under a Plan of Arrangement entered into by the Trust, Vermilion Resources
     Ltd., Clear Energy Inc., and Vermilion Acquisition Ltd. The Trust is an
     open-end unincorporated investment trust governed by the laws of the
     Province of Alberta and created pursuant to a trust indenture. Vermilion
     Resources Ltd. (the "Company") is a wholly owned subsidiary of the Trust.

     Prior to the Plan of Arrangement on January 22, 2003, the consolidated
     financial statements included the accounts of the Company and its
     subsidiaries. After giving effect to the Plan of Arrangement, the
     consolidated financial statements have been prepared on a continuity of
     interests basis which recognizes the Trust as the successor entity to
     Vermilion Resources Ltd. The consolidated financial statements include the
     accounts of the Trust and its subsidiaries and have been prepared by
     management in accordance with Canadian generally accepted accounting
     principles on a consistent basis with the audited consolidated financial
     statements for the year ended December 31, 2002. The interim consolidated
     financial statements should be read in conjunction with the Trust`s 2002
     Annual Information Form.

2.   SIGNIFICANT ACCOUNTING POLICIES

     a)   Unit Rights Incentive Plan

          The Trust has a unit-based long-term compensation plan for employees,
          directors and consultants of the Trust and its subsidiaries.
          Compensation cost is measured based on the intrinsic value of the
          award at the date of the grant and is recognized over the vesting
          period. Consideration received by the Trust on exercise of the units
          rights is credited to unitholders' capital. See Note 8 for a
          description of the plan and pro-forma disclosure of the associated
          compensation cost.

     b)   Per Unit Amounts

          Net earnings per unit are calculated using the weighted average number
          of units outstanding during the period, including the weighted average
          number of exchangeable shares outstanding converted at the exchange
          ratio at the end of each month. Diluted net earnings per unit are
          calculated using the treasury stock method to determine the dilutive
          effect of unit based compensation. The treasury stock method assumes
          that the proceeds received from the exercise of "in the money" trust
          unit rights are used to repurchase units at the average market rate
          during the period.

     c)   Reclamation Fund

          A reclamation fund has been set up by the Trust to ensure that cash is
          available to carry out future abandonment and reclamation work on
          wells, plants and facilities. The contributions are currently made on
          the basis of $0.20 per barrel of oil equivalent of production in
          Canada and France. Actual abandonment and reclamation work undertaken
          in the period was funded from the fund balance.

     d)   IncomeTaxes

          Income taxes are calculated using the liability method of accounting
          for income taxes. Under this method, income tax liabilities and assets
          are recognized for the estimated tax consequences attributable to
          differences between the amounts reported in the consolidated financial
          statements of the Trust and their respective tax base, using enacted
          income tax rates. The effect of a change in income tax rates on future
          tax liabilities and assets is recognized in income in the period in
          which the change occurs. Temporary differences arising on acquisitions
          result in future income tax assets and liabilities.


                                       12
--------------------------------------------------------------------------------
<PAGE>

2.   SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

          The Trust is a taxable entity under the Income Tax Act (Canada) and is
          taxable only on income that is not distributed or distributable to the
          Unitholders. As the Trust allocates all of its Canadian taxable income
          to the Unitholders in accordance with the Trust Indenture, and meets
          the requirements of the Income Tax Act (Canada) applicable to the
          Trust, no provision for Canadian income tax expense has been made in
          the Trust.

          In the Trust structure, payments are made between the Company and the
          Trust which result in the transferring of taxable income from the
          Company to individual Unitholders. These payments may reduce future
          income tax liabilities previously recorded by the Company which would
          be recognized as a recovery of income tax in the period incurred.

     e)   Distributions

          The Trust makes monthly distributions of its distributable cash to
          Unitholders of record on the last day of each calendar month. Pursuant
          to the Trust's policy, it will pay distributions to its unitholders
          subject to retaining an appropriate distribution reserve, satisfying
          its financing covenants, making loan repayments and, if applicable,
          funding future removal and site restoration reserves.

3.   TRANSFER OF ASSETS AND LIABILITIES PURSUANT TO THE PLAN OF ARRANGEMENT

     Under the Plan of Arrangement, the Company transferred to Clear Energy Inc.
     a portion of the Company's existing lands and exploration assets. As this
     was a related party transaction, assets and liabilities were transferred at
     book value. Details are as follows:

     Petroleum and natural gas assets and equipment                     $19,509
     Future income tax asset                                              5,461
     --------------------------------------------------------------------------
     Total assets transferred                                           $24,970
     Provision for site restoration and abandonment                          89
     --------------------------------------------------------------------------
     Net assets transferred and reduction in share capital              $24,881
     --------------------------------------------------------------------------

     Associated with the Plan of Arrangement, the Company recorded transaction
     costs of $25.6 million, with $16.8 million related to the issue of Trust
     units in exchange for cancellation of stock options and $8.8 million in
     advisory and other costs.

4.   BUSINESS  DISPOSITION AND INVESTMENT

     Effective January 22, 2003, the Company sold its existing 40% working
     interest in the Central Block in Trinidad to Aventura Energy Inc.
     ("Aventura") for consideration of 212,059,512 shares. As this was a related
     party transaction, assets and liabilities were transferred at book value.
     The sale increases the Company's equity holding in Aventura to
     approximately 72% from approximately 47% held prior to the sale.

5.   LONG-TERM DEBT

     At June 30, 2003, the Company had a line of credit of $260 million with a
     banking syndicate, which has a one year revolving period with a one year
     term to follow with a final settlement payment required at the end of the
     second year. A working capital tranche of $10 million included in the $260
     million facility has been placed in France to assist cash-management
     practices.

6.   FUTURE INCOME TAXES

     During the period ended June 30, 2003, reductions in corporate income tax
     rates were substantially enacted. The enacted rates are to be phased in
     over five years starting in 2003. As a result, the Trust's future income
     tax rate decreased to approximately 37 percent compared to 42 percent in
     prior periods. The future income taxes recovery recorded in the second
     quarter of 2003 includes the impact of this reduction in future income
     taxes of $13.7 million.


                                       13
--------------------------------------------------------------------------------
<PAGE>

7.   UNITHOLDERS' CAPITAL AND EXCHANGEABLE SHARES

     Pursuant to the Plan of Arrangement, 51,480,467 units of the Trust and
     6,000,000 exchangeable shares of the Company were issued in exchange for
     all of the outstanding shares of the Company on a one for one basis.

     The exchangeable shares are convertible into trust units based on the
     exchange ratio, which is adjusted monthly to reflect the distribution paid
     on the trust units. Cash distributions are not paid on the exchangeable
     shares. During the period, a total of 646,016 exchangeable shares were
     converted into 650,740 trust units. At June 30, 2003, the exchange ratio
     was 1.05507 trust units per exchangeable share.

<TABLE>
<CAPTION>
                                                                        NUMBER OF SHARES                  AMOUNT
     -----------------------------------------------------------------------------------------------------------
<S>                                                                     <C>                            <C>
     COMMON SHARES OF VERMILION RESOURCES LTD.
     Balance as at December 31, 2002                                          55,866,918               $ 140,557
     Issued upon exercise of stock options                                       267,100                   1,201
     -----------------------------------------------------------------------------------------------------------
     Balance January 21, 2003, prior to plan of arrangement                   56,134,018               $ 141,758
     -----------------------------------------------------------------------------------------------------------

     Trust units issued on cancellation of employee
        stock options (Note 3)                                                 1,346,449               $  16,817
     Transfer of assets and liabilities to Clear Energy Inc. (Note 3)                 --                 (24,881)
     Trust units issued                                                      (51,480,467)               (119,739)
     EXCHANGEABLE SHARES ISSUED                                               (6,000,000)                (13,955)
     -----------------------------------------------------------------------------------------------------------
                                                                                     NIL                     NIL

<CAPTION>
                                                                         NUMBER OF UNITS                  AMOUNT
     -----------------------------------------------------------------------------------------------------------
<S>                                                                     <C>                            <C>
     TRUST UNITS
     Unlimited number of trust units authorized to be issued

     Issued pursuant to Plan of Arrangement January 22, 2003                  51,480,467               $ 119,739
     Distribution reinvestment plan                                               79,478                     971
     Issued on conversion of exchangeable shares                                 650,740                   1,503
     -----------------------------------------------------------------------------------------------------------
     Balance as at June 30, 2003                                              52,210,685                 122,213
     Trust units issuable on conversion of exchangeable shares                 5,648,828                  12,452
     -----------------------------------------------------------------------------------------------------------
     Trust unitholders' capital as at June 30, 2003                           57,859,513               $ 134,665
     -----------------------------------------------------------------------------------------------------------

<CAPTION>
                                                                        NUMBER OF SHARES           CONSIDERATION
     -----------------------------------------------------------------------------------------------------------
<S>                                                                     <C>                            <C>
     EXCHANGEABLE SHARES

     Issued pursuant to Plan of Arrangement January 22, 2003                   6,000,000                $ 13,955
     Exchanged for trust units                                                  (646,016)                 (1,503)
     -----------------------------------------------------------------------------------------------------------
     Balance as at June 30, 2003                                               5,353,984                  12,452
     -----------------------------------------------------------------------------------------------------------
</TABLE>

     As per the Plan of Arrangement, shareholders of Vermilion Resources Ltd.
     received one unit or one exchangeable share in the Trust for each common
     share held. In addition, Vermilion shareholders received one share in a
     separate publicly listed oil and gas company, Clear Energy Inc. for each
     three common shares held (Note 3).



                                       14
--------------------------------------------------------------------------------
<PAGE>

8.   TRUST UNIT RIGHTS INCENTIVE PLAN

     The Trust has a unit rights incentive plan that allows the Trust to issue
     rights to acquire trust units to directors, officers, employees and service
     providers. The Trust is authorized to issue up to 6,000,000 unit rights,
     however, the number of trust units reserved for issuance upon exercise of
     the rights shall not at any time exceed 10% of the aggregate number of
     issued and outstanding trust units of the Trust. Unit right exercise prices
     are equal to the market price for the trust units on the date the unit
     rights are issued. If certain conditions are met, the exercise price per
     unit may be calculated by deducting from the grant price the aggregate of
     all distributions, on a per unit basis, made by the Trust after the grant
     date. Rights granted under the plan vest over a three year period and
     expire five years after the grant date.

     The Trust accounts for its unit rights incentive plan using the
     intrinsic-value of the unit rights. Using intrinsic-values, compensation
     costs are not recognized in the consolidated financial statements for unit
     rights granted to employees and directors when issued at prevailing market
     prices.

     Since the fair value of the unit rights can not be determined due to the
     nature of the reducing exercise price feature, pro-forma compensation cost
     has been determined using the excess of the unit price as at the date of
     the consolidated financial statements, over the exercise price for unit
     rights issued since January 22, 2003 as at the date of the consolidated
     interim financial statements. For the six months ended June 30, 2003, net
     earnings would be reduced by $2,107,000. The effect on net earnings would
     be a decrease of $0.04 per unit.

     The following table summarizes information about the Trust's unit rights

                                              NUMBER OF       WEIGHTED AVERAGE
                                            UNIT RIGHTS         EXERCISE PRICE
     -------------------------------------------------------------------------
     Balance, January 22, 2003                       --               $     --
        Granted                               4,687,000                  11.50
        Cancelled                              (261,300)                 11.45
     -------------------------------------------------------------------------
     Balance, June 30, 2003                   4,425,700               $  11.50
     -------------------------------------------------------------------------


9.   PER UNIT AMOUNTS

     Basic per unit calculations are based on the weighted average number of
     trust units outstanding. Diluted calculations include additional trust
     units for the dilutive impact of unit rights outstanding pursuant to the
     unit rights incentive plan.

     Net earnings from operations per unit are as follows:

                                              JUNE 30, 2003       JUNE 30, 2002
     --------------------------------------------------------------------------
     Net earnings
       Basic (1)                                 $     0.55         $      0.36
       Diluted (2)                               $     0.55         $      0.35
     --------------------------------------------------------------------------

     (1)  Basic per unit calculations are based on the weighted average number
          of trust units outstanding in 2003 of 57,630,891 for the period
          (55,714,837 common shares in 2002) which includes outstanding
          exchangeable shares converted at the period end exchange ratio.

     (2)  Diluted calculations include additional trust units in 2003 of 319,690
          for the period (1,067,612 additional shares in 2002) for the dilutive
          impact of the unit rights incentive plan (stock option plan in 2002).
          Calculations of diluted shares exclude 43,000 of unit rights in 2003
          which would have been anti-dilutive. There were no adjustments to net
          earnings from operations in calculating dilutive per unit amounts.


                                       15
--------------------------------------------------------------------------------
<PAGE>

10.  SEGMENTED INFORMATION
                                                    JUNE 30,         JUNE 30,
                                                        2003             2002
     ------------------------------------------------------------------------
     Petroleum and natural gas revenues:
         Canada                                   $  126,091       $   96,112
         France                                       36,714           37,355
         Trinidad                                      6,122               --
     ------------------------------------------------------------------------
                                                  $  168,927       $  133,467
     ------------------------------------------------------------------------
     Net earnings:
         Canada                                   $   24,853       $   11,563
         France                                        6,328            8,212
         Trinidad                                        748               --
     ------------------------------------------------------------------------
                                                  $   31,929       $   19,775
     ------------------------------------------------------------------------
     Cash flow from operations:
         Canada                                   $   54,555       $   42,689
         France                                       21,323           23,434
         Trinidad                                      3,242               --
     ------------------------------------------------------------------------
                                                  $   79,120       $   66,123
     ------------------------------------------------------------------------
     Capital expenditures:
         Canada                                   $   12,017       $   66,368
         France                                        6,844           11,909
         Trinidad / Argentina                         14,171              748
     ------------------------------------------------------------------------
                                                  $   33,032       $   79,025
     ------------------------------------------------------------------------


                                                    JUNE 30,     DECEMBER 31,
                                                        2003             2002
     ------------------------------------------------------------------------
     Identifiable assets:
         Canada                                   $  457,562       $  497,512
         France                                      193,922          199,385
         Trinidad / Argentina                        114,626          114,814
     ------------------------------------------------------------------------
                                                  $  766,110       $  811,711
     ------------------------------------------------------------------------

11.  CONTINGENCIES

     On September 25, 2001, Vermilion received a tax notice from the Direction
     Generale des Impots regarding the Company's wholly owned subsidiary in
     France, Vermilion REP S.A. The notice advises that the Company is liable
     for a registration fee that was owed at the time of the purchase of the
     French properties in 1997 in the amount of 4.5 million Euro, including
     interest charges for late filing. The Company disagrees with the tax
     authorities position and is in the process of challenging the notice. At
     the present time the Company is unable to determine the likelihood that it
     will be required to pay the registration fee, and as such, no amount has
     been accrued in the consolidated financial statements at June 30, 2003.




                                       16
--------------------------------------------------------------------------------
<PAGE>

12.  COMMITMENTS

     The Trust realized a financial hedging loss of $11.8 million during the
     first six months of 2003 (2002 - $1.6 million gain) related to its hedging
     activities. Hedging contracts currently in place are as follows:

                                               REMAINING   CALENDAR    CALENDAR
                                           SIX MONTHS OF       YEAR        YEAR
                                                    2003       2004        2005
     --------------------------------------------------------------------------
     Oil Hedging Program
         Average volume - WTI (bbls/d)             2,950      2,250         500
         Average price - WTI (US$/bbl)            $24.74     $24.35      $24.20
         Average volume - Brent (bbls/d)           2,600      2,250         500
         Average price - Brent (US$/bbl)          $23.24     $22.93      $22.86
     Natural Gas Hedging Program
         Volume (mmcf/d)                            22.8        5.4          --
         Average Floor ($/mcf)                    $ 5.26     $ 5.39          --
         Average Cap ($/mcf)                      $ 6.37     $ 9.01          --
     Currency Hedges
         Amount - USD/mth (000's)                  4,080      1,000          --
         Exchange Rate                              0.63       0.71          --


13.  COMPARATIVE FIGURES

     Certain of the prior period numbers have been reclassified to conform with
     the current period presentation.


FORWARD-LOOKING INFORMATION

This report contains forward-looking financial and operational information
including earnings, cash flow, production and capital expenditure projections.
These projections are based on the Trust's expectations and are subject to a
number of risks and uncertainties that could materially affect the results.
These risks include, but are not limited to, future commodity prices, exchange
rates, interest rates, geological risk, reserves risk, political risk, product
demand and transportation restrictions.

NON-GAAP MEASURES:

Included in this news release are references to terms commonly used in the oil
and gas industry, such as cash flow and cash flow per share. These terms are not
defined by Generally Accepted Accounting Principles. Consequently, these are
referred to as non-GAAP measures. Cash flow, as discussed in this news release,
appears as a separate caption on the Company's cash flow statement and is
reconciled to both net income and cash flow from operations.

For further information please contact:

Curtis W. Hicks, C.A.
VP Finance & Chief Financial Officer
or
Paul Beique
Director Investor Relations

2800, 400 - 4th Avenue S.W.
Calgary, Alberta  T2P 0J4
Phone:  (403) 269-4884
Fax:  (403) 264-6306
IR Toll Free:  1-866-895-8101
info@vermilionenergy.com
www.vermilionenergy.com





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