RE: : RE: Q2 info out I'll be happy to clear up what you are missing.
I read through the financial fairly quickly, but if I remember correctly, total debt didn't change from Q1 to Q2. About $5 million was spent on drilling in Q2, and that was paid out of cash flow gernerated in Q2.
It is a fundamental error to look only at Bank Debt, while ignoring other debt. Go back and look at the total debt in Q2, and you'll see that about 10 million in other debt was moved to the bank line.
To make your mistake more obvious, imagine if you paid down $1000 in credit card debt by borrowing $1000 on a line of credit. Your line of credit has gone up $1000, but your total debt hasn't changed,
In terms of volume, I think its more a case of low retail investor knowledge - which is exactly what I look for, because once the retail crown catches on, the share price moves up and up.
VRO is focusing on buidling the company, rather than hyping the stock. Which is another think I look for.
There is plenty of institutional interest in fast growth developing companies. if you look over near term volume, you will see plenty of very high volume days - which is institutional activity.
Its definately a show me story - and they should be showing us positive growth every month till next break.
The only negative in the Q2 info, is VRO's reduction in their 2012 cash flow forecast from about 40 million to 30million. The reduction looks to be the result of lower forecast commodity prices, as forecast production is unchanged. If actual production or prices are higher than expected, then cash flow will be higher than forecast.
ps, that 700 initial boe/day well is way better than expected - a few more like that, and production will be much better than expected.
Needless to say, I really like what I see here. I can't wait for the August wells to be tied into production. When the retail punters catch on, they'll like it too.