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Southern Pacific Resource Corp STPJF

Southern Pacific Resource Corp. is a Canada-based company, which is engaged in the thermal production of heavy oil in Senlac, Saskatchewan on a property known as STP-Senlac, and thermal production of bitumen on a property located in the Athabasca region of Alberta known as STP-McKay, as well as exploration for and development of in-situ oil sands in the Athabasca region of Alberta. Its STP-McKay property consists of oil sands leases totaling approximately 37,760 acres. The Company’s operations also include Anzac, Hangingstone and Ells. The Company’s STP-McKay property is located approximately 45 kilometers northwest Ft. McMurray. The Anzac project covers approximately 117 kilometers of two-dimensional (2D) seismic. The Company owns 80% interest in Hangingstone project. The Ells project covers approximately 164 kilometers of two-dimensional (2D) seismic.


GREY:STPJF - Post by User

Comment by LeGagneuron May 10, 2011 5:28am
605 Views
Post# 18552196

RE: RE: Article focuses on STP in Todays Calgary H

RE: RE: Article focuses on STP in Todays Calgary HFrom the BMO Capital analysis p5:

"We estimate that the value of Senlac and Mckay phase 1 alone is in the range of $1.80 - 2/share, implying little value is being given to the companys other development opportunities or resource upside."
https://research-ca.bmocapitalmarkets.com/documents/40E0D89E-3EE1-4D8F-9747-1D65A6341567.PDF

That is we´re currenly valued at even lower levels than what can be considered relevant when only including McKay 1 and Senlac and that no value what so ever at these levels are assigned to either of Mckay 2 (24.000 bpd), Read Earth (objective minimum 10.000 bpd) as well as Wabiskaw (significant potential project) or any of it's other land.

We must not to forget that the company expects to continue with a significant exploration program next coming winter at e.g. Anzac (75 sections), Hangingstone (66 sections), Leismer & Kirby (51 sections), Ells (51 sections) and thus may identify even further opportunity to develope it's land by identifying even more production expansion..
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