VIRGINIA HILLS OIL CORP VFGGF

buyout in the next 3mos.?

[rationalexuberance]

With the release of the audited annual results on April 9, I wouldn't be surprised to see PRY taken out at these levels.

I'll give it 3 months.

[ofirme]

Why would any shareholder agree for anything at a price like that? If the company can generate over $40M cashflow and reduce debt to bellow$90M, why would  the entire EV be $160M (US)? By reducing debt to $90M by end of 2014 and having about 2000+ bopd (due to waterflooding)  the $0.2CDN will give you EV of $125M (US) and still having the land and over one more year   of

[nikehercules]

Cash flow from operations was $6.7 million for Q4 on 2600 bbls/day PRY is now closer to 2200 bbls/day, so we're looking at $5.6 million for Q1. Assuming they hold production and royalty rates don't go up (and they will) we're looking at $22 million free cash flow for the year, not $40 million as stated in the last post. I'm looking at page 18 of the MD&A.

[bargnhillbilly]

Ofirme, Would you care to comment on the company's execution up to now. The last article I read from this board had a link and it seemed Pinecrests neighbors were all doing well. While Pinecrest continues to suffer. We all know its due to the waterflood wells but do you think that  Pinecrest would recruit someone with expertise in waterflooding either as a consultant or as a J/V partner

[ofirme]

I never said that execution was good at pinecrest. the past is known and choices were made. now it is time to assess the sustainability of the debt and the cashflow against it in order to  see if it is a must to sell the company or not. in my opinion it is possible for the company to  survive on its own and demonstrate its business model, but it will be a long process. a  quick way

[bargnhillbilly]

Ofirme, Thanks for bringing me up to speed. I'm in total agreement a J/V is needed to bring Pinecrest out of it's slump. I just hope management does the right thing. I don't consider it a weakness to ask for help when help is needed!

[ofirme]

You may not consider it a weakness, but coming into a deal asking for help is not a good   position. once the waterflooding of july and november are responding in full the company   will be in a much better position.