Southern Pacific Resource Corp STPJF

RE:January numbers

[Eyeinvestor]

Indeed. The interesting data is the individual wells on Pad 1 and Pad 2. Eye continue to think that the April ICDs when they announce them will be focused on pad 2 only. This would get the highest return on early investment ....................................................................................................................................................................................................................... Eye think pad 1 is a distraction. Maybe there will eventually be some additional production from 1p3 but the design and layout of pad 1 was fundamentally flawed. If investors are looking at pad 1 production and tr-eye-ing to draw conclusions about the value of STP , they are looking at the wrong thing. To each his own, but the future of McKay will look like pad 2 , not like pad 1. Pad 2 will show how much bbd we can expect from each future pad as they are built, or from additional infill wells ................................................................................................................................................................................................................................. Pad 2 is close to 2,000 bbd and on its way to 6,000 bbd. Future well pads can and will do 6,000 bbd. Pad 1 (aka "Shat's folly") has got 4 out of 6 wells stumbling along at about 200bbd in total. With ICDs, perhaps this can get up to 2,000 bbd, but who cares. Nobody is going to drill a pad like pad 1 again. The present value of STP is the reserves that will be extracted by future pads like pad 2. .............................................................................................................................................................................. If you look at January production through those eyes, then the numbers are all good. 2P1 was down for ICD installation but if you use Feb number it is up 100%. 2p2 is up 50bbd with a better SOR. 2p3 is (the best well on the pad) is up again, with good SOR. 2P4 (the worst well on the pad) is up. 2P5 is marginally up. 2p6 is marginally down. Any of these wells can get to the 700-900 bbd that 2p1 achieved in March and grow from there. Next installations of ICDs are in April, so no meaningful numbers until May production is reported in June. ...................................................................................................................................................................................................................................... A March number, even if it was available is going to tell us little to nothing.