Southern Pacific Resource Corp STPJF

RE: RE: WTI-Brent Spread Costing Canadian Producer

[kavephish]

I don't see it as a rip off, we are just stuck selling to only one buyer.  This was a very shortsighted move Canada made years ago.  Transcanada and Enbridge are foaming at the mouth to build pipelines south and west  - they have the will and the money to do it but we have to deal with the environazis and natives first.  Looking at the Novemebr presentation, pg 9 shows "transportation costs" at $11.08 per bbl (significantly higher than Senlac), and pg 16 makes refernece to "increased truck loading" so it appears they will be hauling by truck for the first while.  Seems to me that is an inefficient way to move the product and we don't know how far it has to be shipped, and if STP has saved approx 15 million on construction, why is that money not being spent on a pipeline?  Is there an issue with tie in?  No capacity? Approval problem (although it must have been addressed somewhere in the original application?)  Plus, either approved pipeline south/west will take a lot of time to build so it looks like we're stuck trucking for WTI less heavy oil discount for awhile.