VIRGINIA HILLS OIL CORP VFGGF

Nasty bad results

[Dave4444]

Achieved record average production of 4,315 boe per day (99% light oil) an increase of 28% from 3,358 boe per day for the three months ended March 31 , 2012. Average production for the first quarter 2013 increased by 23% compared to Q4 2012 (3,510 boe per day);

 

Thrilling, they spent over $100 million in the year to increase production by a measly 957 BOE/day. LOL Plus, add more share dilution to the mix. Effectively 8% more shares outstanding and over $100 million more debt. If the water floods do not work, the company is toast because they cannot afford to spend another $100 million this year for a tiny production increase.

 

And then look at this waterflood news:

"Pinecrest has chosen to truck the injection water to each new scheme. Consequently, these additional water hauling costs have contributed to higher operating costs during the first quarter"

 

How can you possibly make any money when you have to truck water for your waterflood and how much water can you be injecting if you have to truck it in?

 

Hey, but just my thoughts, after all, I am likely wrong as I keep reading about these types of plays making the USA energy self-sufficient in the future.

[bobby1231]

I'm not sure what you were expecting but it's in line with what there goal is. I don't see a sell off coming but we will see tomorrow.

[terroir]

I think you are being too kind with regards the spend. Twelve month trailing capital expenditure is $200 million.  It can only get better going forward, unless company is changing guidance. Next 1000 boe/d should be quite less expensive as company should reach 5300 boe/d by Q4 on additional $80 million. The water-flood is very needed, but a glaring absense of information. News of trucked

[bankerboy28]

Looks like the shareprice did sell down from the $1.20 to the current 92 cents or so for a reason....the market always picks up on the whispers in advance....likely the price will dip and then flounder around for the summer...for a very patient investor with a longer timeline if could be accumulate time...but its probably gonna be dead money for awhile and then you have to hope two things happen..

[bobby1231]

I guess you were right after all

[waw33]

You guys can post all the bad scary stuff you want. Nothing unexpected here except some smart spending ahead of break up. Two waterfloods will be reducing declines over break up as well. Small panic dump this morning, will close above .90.