Greetings, and welcome to the Vermilion Energy Third Quarter Earnings Release Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Lorenzo Donadeo, President and Chief Executive Officer for Vermilion Energy. Thank you, Mr. Donadeo, you may begin.

Thank you, operator. Good morning, ladies and gentlemen, and thank you for joining us today to discuss our third quarter 2012 financial and operating results. I'm Lorenzo Donadeo, President and CEO of Vermilion. Joining me today are Tony Marino, Executive Vice President and Chief Operating Officer; Curtis Hicks, Executive Vice President and CFO; and Dean Morrison, our Director of Investor Relations. Earlier this morning, we released our third quarter 2012 financial and operating results reporting production of 36,546 BOE a day. As was planned, production volumes were lower than in the previous quarter due to the shut-in of some of our Canadian dry gas production, lower Cardium-related activity levels due to wet ground conditions after breakup and approximately 2 weeks of planned downtime in Australia to accommodate platform maintenance activities. Year-to-date, production has grown by more than 10% over the same 9-month period in 2011. This strong growth has been largely driven by a significant increase in Canadian oil volumes from our Cardium development in addition to a 22% increase in France oil volumes, largely attributable to our highly accretive acquisition of approximately 2,200 BOEs per day in France, which we completed in January of 2012. With our continued focus on predominantly crude-based production growth, we have successfully grown our oil and liquids exposure to approximately 2/3 of consolidated production. Most notably in Canada, where oil and liquids now account for about 60% of our production, as compared to 45% in the third quarter of 2011. In addition to our strong oil and liquids rating approximately 15% of our production is comprised of royalty-free, high netback natural gas in the Netherlands. Fund flows from operations for the third quarter were $137 million or $1.39 per share as compared to $128 million or $1.30 per share in the prior quarter and…

[Operator Instructions] Our first question comes from Gordon Tait with BMO Capital Markets.

A couple of questions. First, in your Canadian operations, just could you maybe provide us a little bit more color on that DFIT test? Like what specifically kinds of information do you get out of that test that give you what you say are really encouraging results? What sort of things do you see?

Okay, Gord. That's a good question there. First of all, we did take a core in the well and we liked the way the core looked. We did perform a DFIT. That stands for Diagnostic Fracture Injection Test. It's a test that -- it's just an injection test that pressures over the frac gradient. The most encouraging aspect of the test is that we calculated a permeability from that, that was the top end of the range that we had previously estimated. We also got a reasonable frac gradient on the well, which I think bodes well for our ability to effectively fracture horizontal wells in the future.

Okay, so those 2 pieces of information indicates good permeability plus the propensity for fracture?

Yes.

Okay. And then I think you mentioned or Lorenzo mentioned that you might you drill one well in the Duvernay before the end of the year. Is that right? I was just wondering what sort of cost, what kind of cost you'd budget for that well?

Yes. What we would -- what we're planning on doing is to drill a couple more vertical strat tests over the acreage block to go with the one that we already have at Edison. And again, the evaluation program there is beyond just logging with the coring and a DFIT. The cost on one of those wells is in the range, with that degree of evaluation, is in the range of about $4 million. We do plan to get the first one in this year and the second one probably in the early part of next year. There could be some operations that we'd begin on the second one before the end of the year.

All right. And just one last question. Your Netherlands...

Also let me just add that beyond this vertical drilling program that I just talked about, we then intend to watch the industry activity. You're probably aware that there have been announced plans to drill about 100 horizontal wells from Kaybob to Williston Green. And of course, we sit with our land right between those 2 areas. So we're going to look at those industry results. We're going to look at the way the industry drills and fracs the wells and frac those horizontal wells with the objective being to take advantage of all that industry capital that's going to go in, be able to kind of move down the very steep, initial more expensive part of the learning curve using the rest of the industry's investment. And then after that, I think probably in 2014, we'd be prepared to begin our own horizontal -- first horizontal wells and achieve the same kind of continuous improvement from that point forward that we had achieved earlier in the Cardium program.

Okay. And then just a question on your Netherlands wells. I mean, you're getting very good results in those Netherlands gas wells. Is there a prospect? Are you able to -- for increasing the pace of development there or do you face regulatory hurdles, infrastructure hurdles?

There are always some significant lead times in drilling wells in the Netherlands. They've got a very detailed and effective regulatory process there that we follow. And what we're shooting for at this point is a ratable program, kind of consistent levels of drilling activity. It's possible that a few years down the line, we might pick up that pace of drilling, but at present, I think our 2- to 3-well programs that we've had each year in the Netherlands is probably a reasonable pace to proceed. The infrastructure constraints exist in certain cases and where it's appropriate, we'll seek to expand the capacity to allow a little bit more production.

[Operator Instructions] Our next question comes from Eric Cassell [ph] with CCI.

Are you expecting any more natural gas wells to be brought online this year or early next year that you've drilled previously?

Well, in the Netherlands, we would be seeking basically between the end of this year and the summer of 2013 to bring on both of the wells that we've recently drilled, the Vinkega, the Eernewoude. Both would be producing at restricted rates as compared to the production test.

Okay, but you're not expecting to bring on anything else any other wells during that time period?

In, that would be what we intend to bring on in the Netherlands. I mean, we have our -- we have some of our shut-in production in Canada that we would be returning depending on prices and depending on our lease obligations.

Our next question comes from Cristina Lopez of Macquarie.

Just one quick question with respect to France. Obviously, encouraging workover results in the country. Would you expect the capital expenditures in France to increase in 2013 as a result?

Well, we haven't established our capital guidance for next year yet, but I do think that we have quite a large number of development opportunities in France, and I would expect our capital investment there to rise over the next few years.

And what's the ability to access services to do workovers and infill drilling in the country?

I think it's got adequate service infrastructure. It takes more planning in the -- to execute well operations in Europe than it does in Canada. I think we're pretty used to that. And I do think that we'll be able to access all the services that we need for the size of programs that we're envisioning.

And sorry, one follow-up. It looks like there's a slight increase to the CapEx budget for the remainder of the year. And can you give any color around that?

Sure, Cristina. It's just a function of a couple of things. We had increased the budget earlier this year to accommodate some of the land purchases that we had made on the resource opportunities that we're pursuing. We increased the Cardium spending. We saw some strength in crude prices. We felt comfortable adding to that budget. And then we've got our Australia drill program that we had budgeted for and we had included in that program 3 wells, and we'll drill either 2 or 3 depending on the circumstances including timing of the rig. So those kind of high-level reason for changes to the program.

And there are no further questions at this time. I'll turn it back to management for closing remarks.

Great. Well, thank you, operator, and thank you, everyone, for participating in our conference call today. Thank you very much.

Thank you. This concludes today's conference. All parties may disconnect. Have a great day. Thank you.