VIRGINIA HILLS OIL CORP VFGGF

RE:RE:RE:RE:RE:RE:The "Nothing is New" news is out

[sellthefarm]

They've already cut the line of credit at quarter end to $115m.  It was already reduced from $165 at the end of 2013 and now reduced further.  They keep getting an extension so that they can prove a stable production profile and thus the bank will be more willing to keep the line at current levels.   Read below for comments from notes to statements.

From note 7 to Q2 statements:
"During the banks semi-annual review in late 2013, the credit facility was amended to provide for a $150.0 million revolving credit facility and a $15.0 million development loan. The development facility may be accessed only by permission from the banks. On May 30 2014, the credit facility was further amended to extend the bank’s annual review and borrowing base redetermination to July 31, 2014 and limited the available operating line to a maximum of $117.5 million, with any excess cash flow of the Company to be applied towards reducing the outstanding revolving credit facilities.

The credit facility is a 364 day committed facility, available on a revolving basis until July 31, 2014, at which time it may be extended for a further 364 day period if requested by the Company and accepted by the lenders. If the revolving period is not extended, the undrawn portion of the facility will be cancelled and the amount outstanding will convert to a 364 day non-revolving term facility which is required to be repaid at the end of the non-revolving term which is currently July 31, 2015. Total borrowings permitted under these facilities cannot exceed the borrowing base. In the event that Pinecrest receives a borrowing base shortfall notice from the lenders, the Company will have 60 days to reduce the amount of its borrowings to the borrowing base amount. The credit facility is secured by a $300.0 million general debenture and a general security interest on all of the present and future acquired assets of the Company. Subsequent to June 30, 2014, the Company and the lenders have signed an Amending Agreement to extend the annual review to September 29, 2014, with a maximum borrowing limit of $115.0 million (Note 2 a) and Note 17)."

 

From note 2:
Subsequent to June 30, 2014, the Company signed an amending agreement with its lenders to extend the annual review and borrowing base redetermination to September 29, 2014 and to limit borrowings against the credit facility to a maximum of $115.0 million (see Note 17)."