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VIRGINIA HILLS OIL CORP VFGGF

"Virginia Hills Oil Corp, formerly Pinecrest Energy Inc was incorporated under the ABCA on March 24, 2006 under the name Testudo Oil & Gas Exploration Ltd. The Company is a Calgary, Alberta-based oil and natural gas exploration, production and development company with operations in the Canadian provinces of Alberta and Saskatchewan."


GREY:VFGGF - Post by User

Bullboard Posts
Comment by slope20on Apr 20, 2012 3:34pm
236 Views
Post# 19818161

RE: RE: RE: Spain next then who...

RE: RE: RE: Spain next then who...

Agreed..impressive production growth..

here's my view...using ATB March 30  M&A metric for oil wieghted transactions  ( $135M/Flowing bbl)  gives a potential transaction value of  $2.08/sh FD..

On the reserve side... 9.1 MMbbl 2P bookings @ $33/bbl ( ATB again) gives a metric driven valuation of $1.16/sh FD

Since these numbers are derived from actual deals, it is reasonable to assume that the purchaser has built in a valuation  for the potential upside..

PRY has been prudent to drill up thier lowest risk acreage first to establish an admittedly impressive production growth profile...but as they step to the east side and thier other lands, will the same performance be kept up.. and that is really the question CIBC put forwad ( at least in m mind).. the assumption that all areas will provide the same results as Evi has yet to be proven. as has the applicability of waterflood in this reservoir..

so, from my perspective, when some analysts and PRY make generalist statements of "potential", I view that with a grain of salt and consider it overhype..

Slope

Bullboard Posts