VIRGINIA HILLS OIL CORP VFGGF

high debt a problem???

[skhan]

There could be concern that PRY can not manage the deb it is accumulating... didn't think it was a factor but could be.... also market does not think they will grow production and the water testing is high risk... Ir is not giving any updates until the 19th....

Major concern over the rpice of NG.... again didnt think PRY was hostage to this but could be anohter factor...

 

PRy has not made any effort to turn the decline around... staying very quite and creating investors to be very nervous.

is anyone close enough to make some commnets... not just BS but help the board get a sense of direction and the fundemental cause for share decline....

[terroir]

The president and VP Finance bought 400,000 and 100,000 shares respectively at $1.09 on the open market in mid-February. Once they are 30 days before the March 18/19 release, they are in black out - no share transactions. Not much else they could do, perhaps with the exception of a monthly update on water-flood progress. This play is a cash flow machine. No problem managing debt as long as they

[splurge]

When I spoke to them some time ago when the stock was much higher but still down after the failed takeover, they were really surprised and had no explanation as to why. Now they must be shocked. Essentially this has gone from a premium multiple in the top range to a low discounted cash flow multiple at the bottom range of all their peers. Multiple should improve somewhat if waterflood becomes a

[terroir]

This is my understanding: Water-flood is being done to add low cost production and cash flow. It happens that it improves decline rates on the producers.  The decline rate is the decline rate. Within itself it cannot be managed, although it can be mis-managed by flowing too much oil too quickly and reducing the pressure rate in the reservoir. Its impact can be managed by slowing down

[CJHallee]

This might be a stupid statement but I'm wondering if PRY is actually getting the market price per BOE given that there is a supply glut and bottleneck In Alberta.  I guess we should find that out next week.   

[terroir]

Spoke to the company mid-February at which point they were getting $90 from their buyer, Shell. Esssentially they get the cdn light oil price which can be found daily here www.dailyoilbulletin.com. Look at he implied value of the forward strip price: Net Energy Sweet Closing Price*  -$3.10 USD/BBL $88.85 Which with the US$ conversion remains over $90 cdn.

[CJHallee]

Thanks terroir.  Much appreciated.

[jayd54]

Given that PRY received a $12 million break fee from the failed Spartan deal, I would suggest that the debt issue is far less of a concern.  Instituting waterfloods are pricey on the front end, but do pay off with increased production volumes.  And with the proven waterflood capability of the Gilwood/Granite Wash and Slave Point in the area where these guys play, would suggest that an