GREY:VFGGF - Post by User
Post by
Oilytraderon Sep 26, 2013 9:50am
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Post# 21769259
couple thoughts
couple thoughtsUp until the Corporate strategy re-alignment to focus more on waterflooding and debt reduction, the focus was entirely on the steep decline curves. What i like the most about this co, is the extremely high netbacks on a per well basis, and the 200+ ROR on the waterflooding. The field is setup extremely well to quickly implement waterfloods, AND quickly drill additional infill wells that should have communication with the waterflood program. All that said, i believe the most upside will come early next year when a "material" amount of reserves are recognized due to waterflood success at their pilot projects.
Add in a $103 WTI price and we have upside from there. I definitely don't see any takeouts in the next month or so, otherwise the mgmt would be in breach of their fiduciary duties, and likely hauled to court for buying up so many shares. It just seems like their going all in, and thats a great sign of focus, and strategy buy-in.
Im long until mgmt proves me wrong.
oily