VIRGINIA HILLS OIL CORP VFGGF

Debt and decline rates are the reason for the fall

[caillen]

I bought into this on Friday at $.78 with an end of day stink bid...did my homework over the weekend and then sold out again on Monday at $.78. Too much debt being acquired every quarter ($40M)...decline rate is too great (reaks of PMG)...winter acess...one dimensional...and then there's that debt issue...$40M a quarter...that's a lot of debt and you need to hit some major home runs with your drilling program to cover that and it's just not happening...

I'm staying out unless it hits $.40 or less by summer.

[mikeymegabucks]

You are spot on caillen and have called it like it is. Unless the Head Honchos get to grips with the current problems it is a 40c or even 25c stock in short order.The big boys are finding much better buys elsewhere and will not return unless they see solid results that proves the corner has been turned upwards.

[counterintuitive247]

I dont think these reasons are not why the company is suffering the wrath.  Debt is manageble and thats why they got a increase in credit...Other juniors cannot get credit right now.. The bump in TSXV tier 2 to 1 is good news showing the company is resonsible and has assets above 7 million.  Decline rates are not as bad as people on this board are saying take a look at the