VIRGINIA HILLS OIL CORP VFGGF

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Pinecrest Energy Raised $195,200,000 Issued 91,900,000 PRY Shares @ $2.12 Average Pinecrest Share 2012/2011/2010. Facts!

[ofirme]

there is a significance for the prior equity raises at higher prices.
if the company did not do that, they would hsve ran out of time and would have been crushed
 by debt much higher than $128M. 
The model of perfecting drilling technics (high cost), waiting for waterflooding and taking a 
 risk with it, is not a very sustainable one for a low equity high debt model (look at lone pine
 as a prime example...).
Getting in at 0.4 (EV = $220M) and assuming 8 projects in 2014 can generate 2500-3000 bopd
 (as a conservative matter) plus a few new drills and the drillings still from 2013 can total
 close to 3700-4000 bopd by end of 2014. 
Using a $55 netback (which is low when opex is under control and oil is $90+), 3700 equates
 to $72M cashflow. if interest is $10M and capex is $30M, you will have at least $32M in net cash
 flow which will cover some paydown of debt and can start a small dividend. 
I took into account (what I regard as) conservative estimates.
Anyway, these are my 2 cents.
good luck.