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Bullboard - Stock Discussion Forum VIRGINIA HILLS OIL CORP VFGGF

"Virginia Hills Oil Corp, formerly Pinecrest Energy Inc was incorporated under the ABCA on March 24, 2006 under the name Testudo Oil & Gas Exploration Ltd. The Company is a Calgary, Alberta-based oil and natural gas exploration, production and development company with operations in the Canadian provinces of Alberta and Saskatchewan."

GREY:VFGGF - Post Discussion

VIRGINIA HILLS OIL CORP > Huge jump in debt on relatively minor increase in
View:
Post by Fabbug on May 14, 2013 9:25am

Huge jump in debt on relatively minor increase in

Over $100,000,000 spent this past quarter with little to show.  I'm very disappointed in this report and it's avoidance to justify the huge burn rate.  I'm down almost 30% on this and have been patient.  I fear a sell-off today and further decline over the next few months unless management speaks up and provides reasoning behind how to succeed carrying this kind of debt with so little in revenue.
Comment by terroir on May 14, 2013 9:38am
How do you figure $100,000,000 spend in quarter?
Comment by Fabbug on May 14, 2013 10:26am
Look at the change in net debt in the financials.....add three 0's to that number!
Comment by bonjovi501 on May 14, 2013 10:40am
The debt is a concern as you say and that is the reason the share price is where it is. Bottom line is even with the debt we are worth more then .87 and time will tell what the market thinks. I hope Wade can turn the share price around soon. What about the water floods and the barrels of oil compared to last report? 
Comment by terroir on May 14, 2013 10:52am
You are comparing Q1 2012 to Q1 2013. The number you want is the capex for the quarter...$53,000,000
Comment by waw33 on May 14, 2013 11:27am
  "Analogous Slave Point waterfloods in the immediate area have proven to be very effective and have been assigned incremental recovery factors ranging between 50 and 100 percent over primary recovery."   "The responses experienced to date are similar to other analogous waterfloods in the greater Red Earth area and provides additional support for the upside potential ...more  
Comment by poise on May 14, 2013 2:51pm
For $100 million you can drill and produce 5000 BOPD and all the pipeline capacity and WTI pricing in S.E. Saskatchewan.   A horizontal costs $1 million each and IP's are 200 BOPD.  Royalties are extremely low and operating costs a fraction compared to Alberta.   It's time for a completely new plan folks. 
Comment by waw33 on May 14, 2013 5:47pm
"The company retains one of the cleanest balance sheets in our coverage universe, at 1.4x and 1.1x net debt to trailing cash flow ratios in 2013E and 2014E and recently had its bank lines syndicated and increased to $165 million."   Yep time for a new plan, bud.
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