Southern Pacific Resource Corp STPJF

RE:RE:RE:RE:My, My People - Have some faith?

[bmofoshizz]

Nike, good post. I appreciate your insights on commons vs. debs. 

I'm thinking there is an issue with the logic on a deal being contingent on 2P5 ICD though. If the strategic review is contingent upon further successful ICD installation, they'll have to issue a news release stating they are now proceeding with additional installs, as this contradicts the previous guidance ('delaying installation until conclusion of strategic review'). Given they have already flip-flopped from proceeding with work plan to a no-go once since the new loan, I don't anticipate that they will reverse the plan again to proceed with ICD installs prior to the end of the strategic review.

For that reason, I think they will announce the close of the strategic review shortly. That being said, I don't think Lutes and co., despite their change of control bonuses, would be holding off installs and drilling at Senlac for a lowball offer. If it was sub 0.5, why wouldn't they tell the potential acquirer to go kick stones and continue on the work plan? It must be a somewhat agreeable offer, or else it would be business as usual trying to increase production above break even as soon as possible. The ~120 MM of institutional ownership probably wouldn't bite at sub 0.5 either (Sageview and Invesco etc.)

With respect to the seemingly experimental wording in the 2P5 application, this is usually intentional as it gives the applicant optionality in the install and doesn't bind them to one type of liner or another. 

Just some thoughts on your solid discussion Nike. Thanks.