GREY:STPJF - Post by User
Comment by
nikeherculeson Dec 30, 2014 12:54pm
309 Views
Post# 23272472
RE:Cut Off The Head Of The Snake
RE:Cut Off The Head Of The SnakeSTP second lien will most likely be converted to equity - it still doesn't solve their cash crunch problem.
I agree with HRc regarding the long term prospects for oil, but the problem is STP (bonds, debs, equity) isn't the best vehicle to get to the promised land. I think there's a real possibility that they'll only be 1 security guard at McKay in 12-18 months, unless Koch or somebody else picks STP out of CCAA protection.
The fact remains McKay has problematic sand. 2P3 remains the ideal scenario for any redrill, so we're looking at 2800 bbls/day in a very optimistic scenario. Small SAGD (Grizzly, Sunshine etc. etc) is dead - that's coming from two former STP employees.
@Sadgop - what your telling doesn't surprise me. ICD's are useless and the 102 redrill was the better option. Most of the wells at McKay were drilled incorrectly, including 102 wells. It appears STP management was great at building stuff but lousy drillers. Maybe Lutes should apply for a job at Stantec.
Senlac Pad K didn't even have enough pay above the well pairs, and I hear that Pad was decided upon and designed in the back of somebody's minivan.
I expect the TSX will start a delisting review for STP shortly.