GREY:VFGGF - Post by User
Comment by
kisstopherpon Jan 26, 2014 6:26pm
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Post# 22135748
RE:RE:RE:dead money
RE:RE:RE:dead money ofirme wrote: Let 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...
Isn't 3000BOPD a huge assumption, given that every guidance they've given has been revised down? I think if they can do 2500BOPD that would be a success.
Honestly have no faith in Wade and CO. anymore - I wish they would put the company up for sale before the banks force them to do it.