Probate,You say that they elected not to participate in two very...

Probate,
You say that they elected not to participate in two very successful wells - are you able to elaborate?
The issue may well have been a G&G problem in the US operation over the last five years which might be a reflection on the fact they have had a finance guy running it instead of an oil & gas man.
But the problems from this are now of a financial nature as their US operations are now a huge liability and getting more so by the day.
Slide 12 of that AGM presentation tells us that they expect to still have debt of $US30 million at the end of 2009.Given the fact that they only have 1 bcf of gas hedged in 2010,if current gas prices don't improve,then they won't be generating enough cash in 2010 to make debt repayments and they still have large rehabilitation liabilities to finance during 2010/11.
Slide 18 shows the steep decline in production from the key Chandeler 31/32 wells during 2009 - it also shows Vermilion producing all year when in fact it ceased production at the end of March.
An investor also needs to read Note 22(LOANS) in the Annual Report very closely especially the Covenants section.
I would also be surprised if the bank didn't call on them to make accelerated repayments in the semi-annual review due this month and to substantially reduce their borrowing base given the level of gas prices over the last six months.
AS far as TF's sprouting of possible acquisitions of up to $100 million - talk is cheap - implementation given their current financial state would be impossible without huge dilution for shareholders.
The only real value left for shareholders is in the China development which now looks like going ahead but how will they finance the CapEx without huge shareholder dilution and there's still the real possibility that they will have to sell their China interests to finance
their 'underwater' US operations.