GREY:VFGGF - Post by User
Comment by
ofirmeon Mar 14, 2014 11:00am
129 Views
Post# 22323252
RE:Little action
RE:Little actionLet me repeat myself (like a broken record), the issue is can waterfloodings generate enough to
pay down the debt. the banks will reduce their credit line as the company pays them down. the
company has no need for extra availability if it will not go towards new drilling. as they reduce
debt (and show the full value of the full life cycle of their wells), value will come more from the
fact that there are 100 sections of land that they have rights on that are very economic at much
lower oil prices than today. taht is the plan. empires will not get built here. a good value that will
be sold to someone else just might.
64,000 acres of derisked land with existing production and a lot of infrastructure (for much larger
number of wells than the company managed to drill) is worth a lot. reduce from that a declining
amount of debt.