RE: RE: STP Mentioned as a buy!Post says catch Southern Pacific
Ticker Symbol: C:STP
Post says catch Southern Pacific
Southern Pacific Resource Corp (C:STP)
Shares Issued 316,204,894
Last Close 6/22/2010 $1.07
Wednesday June 23 2010 - In the News
The Financial Post reports in its Wednesday edition that Greg Bay, president of Vancouver's Cypress Capital Management, figures Southern Pacific Resource ($1.07) is a buy. The Post's Jonathan Ratner, writing in Buy & Sell, says Southern Pacific has conventional heavy oil production that Mr. Bay expects will average about 3,200 barrels per day in 2010, growing to roughly 4,500 in 2011. It also has an oil sands lease in the heart of Athabasca Oil Sands' operations. "They've just closed a financing which we think will accelerate their McKay oil sands project," the manager says. The company is working on a 12,000-barrel-per-day pilot project and will look to grow from there. While Athabasca has a lot on its plate since it surrounds Southern Pacific's land position, Mr. Bay says this name could be a consolidation play. Mr. Bay says that over all, he is much more conservative these days. However, that does not necessarily mean focusing on large-cap names. One way to be more conservative is to focus on high-quality managements that are not only looking for growth, but also pay close attention to their balance sheets. The manager also expects to see costs rise on a global level.
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