VIRGINIA HILLS OIL CORP VFGGF

RE:waterflood, penn west and 3000 boepd

[ofirme]

Since when does waterflooding does not increase production? 
waterflooding is supposed to take production (relative to the 15-20% of initial rate that is when 
 its done at end of year 2) gradually into above 50% of intial production and then decline less
 steeply than original curve was. that is the whole idea of waterflooding - repressuring the 
 system and increasing watercut and oil amounts.
By the way, the first 2 batteries of pinecrest have achieved that goal. one of the 3 wells with the 
 much increased water cut is still flowing at twice the rate preflooding.