Goodby Vero It was a good ride for 4 1/2 years, then the bottom fell out. I like the potential of the new TORC, but I think VRO shareholders got the shaft on this merger in terms of what VRO brought to the table. Hopefully the TORC guys, having more of a financial background, will do a better job of operating the new company from that perspective. The first year budget/goals are ambitious. From the 11/19/12 Torc press release:
Guidance:
The implementation of the integration plan surrounding the combination is largely complete and New TORC remains on track to achieve its previously announced 2012 exit guidance of 3,900 BOE/d (75% light oil and NGLs) with a strong balance sheet of $40 million of net positive working capital.
The Board of Directors of New TORC has approved a capital budget of $125 million for 2013. Capital expenditures will be primarily focused on Cardium development combined with continued delineation of the Monarch asset to move this emerging resource play towards the production growth phase.
Based on the approved capital budget, management anticipates production to average 4,250 BOE/d (more than 75% light oil and NGLs) with an exit rate of over 4,900 BOE/d (more than 75% light oil and NGLs).