VIRGINIA HILLS OIL CORP VFGGF

Analyst Buy Recommendation

[terroir]

Dundee have made PRY a top pick in a sector in which they find many undervalued stocks:

 

Recommendation and Valuation:
We are initiating coverage of Pinecrest Energy with a BUY recommendation and a $2.75 target price. Our target is based on a 4.5x 2014 EV/DACF multiple supplemented by $0.59 of risked Slave Point upside and represents a 152% return from the recent closing price.

Figure PRY-1: Valuation Summary


4.5x 2014 EV/DACF                                                 $2.16


Slave Point Type 1.0 (DCM)risked @85%                $0.06
Slave Point Type 2.5 (DCM)risked @85%                $0.18
Slave Point Waterflood Upside risked @25%             $0.35
Target Price                                                               $2.75

We are recommending Pinecrest as a BUY for the following reasons:
• Best netback in the sector through our forecast horizon
• Production per share growth of 63% and 34% is forecast in 2013 and 2014, respectively, with a free cash flow future ahead
• Low Bubble Point Slave Point formation to see near-immediate benefits from waterflood
• Compelling current valuation 

[Ets1]

Without a doubt one of the best and most informative pieces of information for Pinecrest in recent memory.Thanks for posting Terroir !!!!!.Better share prices ahead. Hold your positions people. Results should be coming soon.Thanks again.GLTA>

[terroir]

  I can't emphasize enough how important the waterflood projects will be to Pinecrest and its shareholders. Not only will these low cost projects return the producing wells to production rates close to their IP60 rates, but they will effectively maintain these production levels with only a 5% ongoing decline rate. A radical difference from the primary production profile that reflects high

[splurge]

Good post Terroir The waterflood should ultimately have the beneficial effect of reducing their seasonality also. Pressure can build even in the spring  when access is not possible I would like to think. Last year in their quaterly they mentioned they had built infrastructure and roads which also should reduce the likilhiodnof down time. Together with pipelines and resuced trucking, the

[HARJAY]

 FOR YOUR INFO From TD Secuities March 8 PRY-V $2.25 BUY Key risks associated with our target price include business risks of the company and industry, including but not limited to: loss of key employees, drilling success, volatile commodity prices, operating costs, capital cost overruns, product supply and demand, financing/access to capital, government regulations, legislation, royalties