Southern Pacific Resource Corp STPJF

My, My People - Have some faith?

[tp0052]

Holy Negativity on this board, as of late. I'm somewhat surprised at some long time investors here who are losing faith and obviously are not to happy. Good things will come for all of us, IMO.

I say, have some faith guys. Lutes and his management team are shareholders. The employees are shareholders. We are all shareholders in this endeavor. The ultimate goal of launching the Strategic Review in the first place, in case anyone has forgotten, was to ENHANCE SHAREHOLDER VALUE.

Everything happens for a reason and in my opinion the Management team has all of our best interests at heart. Have a little patience and it will happen. Like others here, I believe that something is in the works. Why else postpone capital expenditures when the money is sitting in the bank.

My hope is that a minority joint venture takes place and we all win down the road. Im interested in the long term value of this investment. What the share price does now, tomorrow or next month, doesn't matter to me. Like nikehercules and his 2016 debenture play, I am willing to wait with my COMMON SHARES to see real value down the road.

Here is the excerpt from the Dec 11, 2013 news release. News is imminent.

Southern Pacific Announces Review of Strategic Alternatives to Enhance Shareholder Value and Provides Operational Update

T.STP| December 11, 2013

CALGARY, ALBERTA--(Marketwired - Dec. 11, 2013) - Southern Pacific Resource Corp. ("Southern Pacific" or the "Company") (TSX:STP) today announces that its Board of Directors has initiated a process to identify, examine and consider strategic and financial alternatives available to the Company with the ultimate view of enhancing shareholder value.

Read more at https://www.stockhouse.com/news/press-releases/2013/12/11/southern-pacific-announces-review-of-strategic-alternatives-to-enhance#dOwkPZ3qDSCQM1bK.99

I have faith ... Cheers, and GLTA!

[kokgold]

Ha ya..thats more like it! Lets stay focused here.. i have faith as well

[monzie]

TP that's exactly why I don't believe some of these people who say they have lost faith and are unhappy.  Not only did the company halt capex but it also decided not to install the 3 ICD's that it already has approval for and have sitting in their inventory.  Even at the very least if these three ICD's were to produce an additional 100 bbl/d each that would be an

[tp0052]

Monzie, Very well said! I agree with you 100%. Come on naysayers - lay out your plausible reasons please. Everyone has their own agenda here, clearly. News is Imminent now and I believe good things will happen. I'm of the opinion that there will be no delays on releasing the Strategic review results to the general public. Time will tell if I am wrong.

[nikehercules]

I'm a realist who doesn't like losing money. Here's what I'm thinking - the ICD's and the reservior in general are my chief concern. I have no doubt there is a deal on the table and I'm sure many in the investment banking community have come to that conclusion - yet there is no positive momentum on the SP. Canaccord seems to be the only major bullish buyer presently. I

[monzie]

But what is so special about 2P5, they already have the approval of two other well pairs that they could have easily installed already - so why is 2P5 the deciding factor?  And why did they choose to request a calendar Q3 installation date instead of Q2? The other 4 ICD applications were requested for immediate installation and approval was given.  That's the part that baffles me

[bmofoshizz]

Spot on Monzie. That scenario makes no sense. That's why there will be news in next couple weeks on strategic review close, sale, JV, or otherwise. They have to get to work ASAP, one way or another. 

[nikehercules]

Monzie et al.: So we are all in agreement! We need to hear something from STP in the next 30 days otherwise things are not looking good. Hopefully tomorrow STP is halted, a deal is struck and we all have a little more cash in that trading account. I worry about the downside. The upside usually takes care of itself. NH

[monzie]

Yes Nike if I don't hear something from the company by the end of the quarter I will start to get a little worried and start demanding answers from Lutes and company.  Until then I remain optimistic that the strategic review will be over soon regardless of whether it is just a simple end to it, more financing, a sale of non core assets, or a jv partnership. Then hopefully the goal of

[freedom45]

What if a potential suitor was putting the squeeze on Lutes and he has decided to squeeze right back (financing in place) with the capex powerplay until review is over Saturday. The ICD's take 1 week each to install so 1 month could see 3 done once all this nonsense ends. As I said many times I prefer to see STP go it alone. I'm prepared for all or nothing.

[Junit290]

30 days seems pretty reasonable to me! I mean when you think about the big picture, that's a lot of operating costs that STP has a eat while deciding on how to stop the bleeding! 

[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 ('

[Junit290]

One thing, correct me if I'm wrong but We only have 2 ICD's installed currently, 2P1 which is our breadwinner and 1P5 which was the worst well out of the dozen drilled. It was flowing 184bbl as of March. It was producing I think less than 50 a day prior to ICD install. Maybe someone can confirm that. So by now they should have a pretty clear idea if 'they' are happy with the

[monzie]

Yes there are only two ICD's installed, and we have AER approval to install another 3 more (2 can be installed anytime and the third one can be installed in calendar Q3).  I believe you are right that 1P5 was producing around 50 bbl/d prior to the ICD installation.  And because of the results of 2P1 and 1P5 they decided to apply for 2 more but chose not to install them, instead said

[nikehercules]

I think 2P5 will become more important the longer we go without a resolution. If we're sitting in august having this same argument then we're all banking on it.

[Eyeinvestor]

Y'all understand why the stock is weak this week right? Nothing to do with fundamentals. It is coming out of the MSCI Canadian small cap index. So a combination of index funds and folks who arb the index are selling in the run up to the index funds dropping the stock. Eye will try and find the exact date, but its probably all done by Friday.

[Junit290]

Interesting. Are suggesting that the selling pressure will stop or get worse. Will there be a big announcement that the indexes are dropping it? 

[monzie]

Junit the announcement was two weeks ago

[monzie]

Eye. The exact date is May 30th.

[Eyeinvestor]

Aye Aye. Selling pressure will be all done by then. I read a report that the index funds held around 2 million shares.

[monzie]

How old is this report eye?  I highly doubt that they still had shares in the recent months. I think STP is just being deleted because nobody cares about it anymore - it's certainly not going to be in any pension funds anytime soon, just like NKO (which incidentally is up 50 cents (25%) since the news of the deletion came out.  So I think the selling pressure here is just

[monzie]

I forgot to add that we're only down 1.5 cents since the news came out on May 14th.

[Eyeinvestor]

The report was this week. If a stock is in the index then the small cap index funds will own it. That's what they do.....Its a tough and demanding job running an index fund!!! Since May 14th they will have been exiting the position and the estimate I saw was that this was 2 million shares. This should be all done by today. It is probably 99% done already, although we may see a reasonable size