Southern Pacific Resource Corp STPJF

Energy Oil & Gas E&P

Southern Pacific Resource Corp. is a Canada-based company, which is engaged in the thermal production of heavy oil in Senlac, Saskatchewan on a property known as STP-Senlac, and thermal production of bitumen on a property located in the Athabasca region of Alberta known as STP-McKay, as well as exploration for and development of in-situ oil sands in the Athabasca region of Alberta. Its STP-McKay property consists of oil sands leases totaling approximately 37,760 acres. The Company’s operations also include Anzac, Hangingstone and Ells. The Company’s STP-McKay property is located approximately 45 kilometers northwest Ft. McMurray. The Anzac project covers approximately 117 kilometers of two-dimensional (2D) seismic. The Company owns 80% interest in Hangingstone project. The Ells project covers approximately 164 kilometers of two-dimensional (2D) seismic.

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Southern Pacific Resource Corp

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Post by kavephishon Feb 16, 2012 11:33am

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Post# 19543030

Does anyone know?

How far in advance STP could enter into hedging contracts for the oil projected to come from Phase I? I know some of their current production from Senlac was hedged at $100ish, but am wondering when they can start, or even IF they can start writing contracts for oil not yet in production? I am curious since a lot of their forecasting was done last year based on $90 oil and .95 exchange rate with regards to CAPEX and debt repayment. Their long term predictions then crept up to being based on $95, and then $100 and $1.00 FX for EBITDA(slide 33 on jan pres). Now, oil prices and FX represent an approximately 15% premium on last year's forecasts, so getting some secured contracts would be good.

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