VIRGINIA HILLS OIL CORP VFGGF

RE:RE:Q3

[nlr2]

I would think that if the company was negotiating a buyout that insiders buying fast quantites of shares would be illegal. That has got to be pretty much the definition of insider trading. I would probably go with your second explanation, that they are just trying to conserve cash. The higher oil prices will probably not be reflected as they have hedges in place for basically all of the production through to the end of the year. So they will take a hit in Q3 and show a gain on Q4, a list of the hedges is in the Q3 MD&A I believe. 

Although I am terrible at making predictions and usually guess on the wildly optimistic side I will make a few now. Haha.

Results for the four waterfloods that online for sure. Hopefully the last two put on are showing results and the earlier two are continuing upwards. 

Hopefully the other three waterfloods that they had planned are now under injection, not expecting results though.

Costs are hopefully still at $22 dollars per BOE, still way to high but the pipeline and electification savings aren't supposed to be realized till Q1.

There should be two or three wells drilled and on production since the summer. Hopefuly these were done with the open hole technique and demonstrate a material change in cost and production.

Negatives that I see are hedging losses, production losses from injector conversion, production losses from the plant turnaround and general declines due to the lack of new production.

Projected Q3 spending was 16 million so the debt should increase by 2-3 million.

If production is over 3000 BOE/D I will be pleased. This company really needs to start hitting their targets, especially since they lowered the bar dramatically.