VIRGINIA HILLS OIL CORP VFGGF

Sell the Company

[kisstopherp]

In this market true value will never be realized - shareholders have thrown in the towel. Faith and trust are gone and with it interest. For legitimate reasons the company/management are majorly out of favour.

My fear is Wade will try and salvage this and only make it worse - Since this is a single asset company there are only two options: 1. status quo or 2. Sell the entire thing.

If they sell they can get .50 - The BOD seem utterly useless as they sit and watch S/P destruction.

How low does it have to go for the BOD to realize the market is screaming at you to do something?

[kisstopherp]

Here's a 3rd option - run the S/P down so that management can cobble up enough money to take it private. This has a 2P reserves value over a $1! -  Any sold for less is a steal - even at .50. Market value and company value are never going to be close to alignment until they sell the company.   Who will be the saviour?  

[ofirme]

For penn west it would be a natural. it will save them the money of developing more   infrastructure for their otter area. if the waterflooding goes reasonably ok (which I still think will  happen), the conversation will become mute. in such a case, the company will have 3 years plus  of close to guaranteed 3000 bopd from waterflooding and a proven model to continue drilling

[kisstopherp]

ofirme - I agree 100% with your assesment. Look at the S/P vs. the fundamentals you list. Totally detached. Will never align unless someone buys it like Penn West or the Chinese.