GREY:VFGGF - Post by User
Comment by
ofirmeon Jan 24, 2014 11:37am
388 Views
Post# 22130206
RE:RE:dead money
RE:RE:dead moneyLet me put a few corrections: at the end of 2013 there should be $130M debt.
If they can produce 3000BOPD in 2014, at $60 netback ($90 US should be 65-70 in normal times
since you have very little royalties yet) x 365 = $65M - $75M. if you have $25M for waterflooding
(4 next year) and interest (on the $130M loan), you will have $40M-$50M to pay debt down next
year.
They have 22 producing waterflooded wells + 17 new ones from mid november. they should all be
before their peak, so the oldest ones should start peaking in 2014.
At this point, it is all about how the waterflooding behaves. if it peaks at 60% of primary, they will be
more than fine. if their waterflooding projects work reasonably ok, they should be doing quite well.
That is what this company was built for...