VIRGINIA HILLS OIL CORP VFGGF

David Pescod

[WHATisMONEY]

DAVID PESCOD STOCKTALK 

October 8, 2010

PINECREST ENERGY (V-PRY) $1.63 +0.11

For the big plays in the oil and sector...invariably you

seem to have to go abroad to exotic locales for that big,

high risk/high reward play that can move ones portfolio.

Nothing would be a better example than Albania with
Bankers Petroleum (BNK), Pacific Rubiales (PRE) in Colombia,

Niko Resources (NKO) in India and so fourth.

Hopefully for its upcoming play in Guyana, Sagres Energy

(SGI) will have some of the same kind of fun.

But once in a while, wouldn't it be nice to find a play in

your own backyard that could also make a dent in your

portfolio, that might be say, gentle and less worrisome

than say the ever-changing rules in foreign lands?

If you're in oil and gas you have plenty to worry about

as it is what with volatile oil and gas prices lately, and in

Canada ever-changing royalty rates (would you believe

Alberta under Ed Stelmach has changed the royalty rates

no less than 6 times in three years. After hiking them ridiclously

and sending the business to BC and Saskatchewan,

Alberta is again open for business).

Which gets us to Pinecrest Energy, and hopefully a kinder,

gentler, story for your portfolio that still appeals to your

sense of greed.

A few weeks ago we interviewed Wade Becker, the successful

President of Pinecrest and past founder of Crescent

Point Energy and Peerless Energy.

Looks like he's on to something good again, and Canaccord

analyst Brian Kristjansen has expectations of a near

double in the stock in the coming year.

Kristjansen writes "The company did mention that its

Slave Point drilling inventory has increased to 110 net locations

from the prior 105 net and that this will double

upon further downspacing to eight wells per section in the

future. Drilling for the Slave Point is planned to commence

in mid-October.”

He continues, “Pinecrest has also drilled three (1.5 net)

Bakken wells and will be completing them prior to year

end. A fourth well is also currently drilling.”

For those not yet aware of this company and its plays,

e-mail Debbie at [e-mail].