Good morning. My name is Christine and I will be your conference operator today. At this time, I would like to welcome everyone to the Vermilion Energy Fourth Quarter 2016 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session. [Operator Instructions] Thank you. Mr. Anthony Marino, President and Chief Executive Officer, you may begin your conference.

Good morning, ladies and gentlemen. Thank you for joining us. I am Tony Marino, President and CEO of Vermilion Energy. With me today are Mike Kaluza, Executive Vice President and COO; Curtis Hicks, Executive Vice President and CFO; and Kyle Preston, our Director of Investor Relations. I would first like to refer to the advisory regarding forward-looking statements contained in today's news release. These advisories describe the forward-looking information, non-GAAP measures, and oil and gas terms referred to today, and outline the risk factors and assumptions relevant to this discussion. During this call, I’ll provide you with a brief overview of our 2016 financial and operating results including a summary of our updated reserves and resource evaluations. I’ll also expand on a few of our key achievements in 2016 and discuss how they contribute to Vermilion’s self-funded growth and income model. Vermilion had a successful year of 2016 despite the challenges faced by our industry. We delivered record annual production of 63,526 BOE/D, exceeding the upper-end of our guidance range of 62,500 to 63,500 BOE/D. This represents 16% production growth and 10% on a per share basis. We achieved this while investing approximately half the E&D capital compared to 2015 and approximately one-third of the amount from two years ago. We invested $242.4 million in E&D CapEx in 2016, which was within 1% of our $240 million budget and represented only 47% of our fund flows from operations also known as FFO. Annual FFO in 2016 was $510.8 million or $4.41 per basic share, just 1% lower than in 2015 despite significantly lower commodity prices year-over-year. Our two largest commodity exposure benchmarks, Dated Brent and European Gas were down 17% and 27% respectively year-over-year. The impact from lower commodity prices was largely offset by higher production, particularly for European Gas,…

[Operator Instructions] Your first question comes from David Popowich from CIBC. Your line is open.

Thanks for taking my questions guys. I just had a question about your asset retirement obligations. It looks like a pretty big uptick in the ARO relative to previous years. And then, when I dig into the notes, it looks like a large chunk of that is due to changes in discount rate assumptions, but there is also a large asset retirement obligation associated with your Germany acquisition. So, I was just wondering if you could just give me a sense of what are the main contributors to the ARO in Germany? And are there any opportunities for, perhaps optimizing that in the future? Thank you.

Well, Dave, our ARO in Germany is really typical with the – our assets spread across Germany or Europe as well as assets in Canada, it’s just - it’s well abandonment. We don’t own major facilities in Germany. So really it relates to the well bores that we’ve acquired and it’s a function of the discount rates that we are required to use from an accounting perspective. And we use fairly consistent rates across all jurisdictions. So, really nothing unusual in the ARO there and the big change really in our overall ARO was the result of a reduction in discount rates and as you can appreciate rates, not, not necessarily bank rates, but global rates or rates that we would be able to achieve in debt markets that have come down considerably in the last year and that has impacted the ARO calculation and a lower discount rate that resulted in a higher net present value that’s recorded on the balance sheet.

So, is there any spending that you would have to incur in the near or medium-term towards asset retirement in Germany? Or is that all in mind with the rest of your reserve report, I believe you talk about the 2030 to 2040 timeframe for having just a number?

Yes, nothing, nothing unusual in those German assets and nothing has an immediate capital commitment. Our ARO spending is forecast in around the $10 million mark which is where it’s been for the last number of years on a global basis.

Great. Thanks guys.

[Operator Instructions] We do not have any questions over the phone at this time. I will turn the call over to Mr. Marino.

Thank you again for participating in our conference call. We look forward to speaking with you again after our Q1 release.