Southern Pacific Resource Corp STPJF

Energy Oil & Gas E&P

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

Southern Pacific Resource Corp

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Comment by kavephishon Jan 19, 2013 7:53am

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Post# 20860913

RE: RE: Bond Deal Done

a couple of points: they mention"reduction in realized crude oil prices due to falling WTI and heavy oil differentials" - no mention of what the company will actually be selling oil for, and "...shutdown which keeps bitumen production capacity below 80% of design capacity could cause it to generate -ve free cash flow"......so from this I read that S and P is saying that STP's break even point is at 80% capacity, or 9500bpd? Seems to me that whoever did this assessment didnt look too deeply into what STP's plan is and just looked at some bare bones numbers to come up with this.

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