VIRGINIA HILLS OIL CORP VFGGF

Spyglass sale of Red Earth assets

[sellthefarm]

Splyglass announced this morning that they received $12.3m for  Red Earth assets which were producing 210boe/d (100% liquids).  Thats $58k per boe.  The same metric applied to PRY current boe/d is ~$110m.  Does anyone know where Spyglass assets are in relation to PRY and if they are of the same production type?  

The Spyglass assets had 0.4MMboe of proved developed producing reserves and total proved reserves of .8MMboe and proved plus probably of 1.4MMboe.  That's $30.8K of proved developed producing reserves, $15.4k of total proved and $8.8k for proved plus probable.  

Just looking quickly it appears PRY has:
1) developed producing reserves of 4.8MMboe x $30.8k = $148m,
2) total proved reserves of 6.8MMboe x $15.4k = $104m and
3) 2P reserves of 11.6MM x $8.8k = $102m.  

Best case they got $148m less $110m of debt = $38m for equity holders plus $20m value for the tax assets ($400m worth of assets which are probably worth 5% of total value or $20m in the worst case).  Thats $38m + $20m for shareholders divided by 222m diluted shares = $0.26.share.  Most llikely case is they get between $100m and $110m for all of their assets plus $20m for tax assets less $110m of debt = $0.05 to $0.09/share to common equity holders.

Any thoughts? Or do the buyers just let them go broke and pick up the assets through the lender for even cheaper?