Southern Pacific Resource Corp STPJF

A quick call to Greg Foofat

[nikehercules]

Some notes from Greg Foofat, he was pretty quick about getting back to my message.

- no press releases will be issued for additional ICD's. This isn't material, last press release said they would be installing more over the summer.

- the ICD on 2P1 was a successful proof of concept.

- STP does not have June numbers yet.

- next press release will be sometime in September due to the year end. They might not include any production numbers beyond June in that release - they will think about it.

- Senlac production will be trending down.

- expect strategic review to be wrapped up by the end of summer.

So basically we're looking at a quiet summer. They'll be no news but more ICD installs. If you're buying, perhaps you can snipe some shares at a lower price.

Thanks Deduction, Eye and Monzie for the feedback. A big thanks to JUnit's "friend" for that ICD spotting. Maybe he could drive through once every 2-3 weeks and see what is going on since this bullboard will be our only source of info in the next months.

Happy Stampedin' and stay diversified!

NH

[kitchensout]

This post has been removed in accordance with Community Policy

[nikehercules]

I almost forgot Eye's curiousity regarding the best well on Pad 2 - 2p3. Greg said this would most likely be the last well to receive and ICD. I'm looking foward to seeing additional ICD approvals on the AER website!

[monzie]

Any word on the new Senlac Phase?  They said they wouldn't be doing any ICD's or Senlac until after the review, but clearly they're installing the ICD's so maybe they're also drilling Phase L. 

[nikehercules]

We discussed senlac production and he mentioned the decline to be 1% per month. I got the impression that Phase L was not being currently drilled, but i did not come right out and ask. Perhaps somebody else can call up Greg and find out? I don't want to pester Greg too many times. Emails and phone calls are being returned alot quicker - certainly much better then that infamous week leading

[Eyeinvestor]

Ive looked through the May data more closely and the data since inception. The ICDs are clearly having a significant positive impact. One can only wonder what the situation would be if the original wells had been installed with ICDs from the start and had a more conservative layout. The good news is that the oil is there. Regarding Senlac......Im wondering if they should just sell Senlac and

[PeakOilBoy]

Eye wonder if you have the bank debt documents, can you share?  100mm cash for senlac would solve a lot of problems. Think you are right lenders want to keep senlac.  t.  I thought RBC was the advisor, why did credit Suisse do the new bank debt deal.?   

[Eyeinvestor]

Sorry eye don't have those docs but it is inconceivable that the covenants would allow STP to sell any major asset without permission of debt holders. IMO STP should finance a entire new pad at McKay secured entirely on the new pad . Make it a hellva deal for the right person if necessary. The steam is there....they might as well use it.

[Eyeinvestor]

2p3 is doing so well it doesn't need an icd! Im interested in whether the layout of that well was a bit more conservative than the others.