Southern Pacific Resource Corp STPJF

RE: RE: RE: RE: RE: RE: Raymond James buying

[ABOil]

I have been buying STP from the low
.90's up to the low $1.20's - no great insight, just fortunate timing. The acquisition of NPE is interesting in terms of implied pricing, though the asset is somewhat immaterial to the Company and could serve to act as a minor distraction to people, especially in light of the lack of success the company faced. Looking at the recent deal that Athabasca did, and applying similar metrics to STP, would make a value of $1.40/share seem defendable, though that applies no premium to the barrels associated with the Senlac project. Giving a higher value to the resources that are not contingent (proved / probable) would get you into the mid $2 range in my opinion. A positive resolution on fundraising for STP in the high yield debt markets should lift some of the overhang, though it should not be a huge surprise to anyone, and in a reasonable market should get the stock into the $1.60-$1.70 range. With the McKay assets being surrounded by Athabasca to the northwest (Dover) and southeast (MacKay), and the asset arguably is too small for many others to care about, but could prove to be a reasonable acquisition for Athabasca to put together with its existing development plan.