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.

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Southern Pacific Resource Corp

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Comment by AT1234on May 09, 2013 1:40am

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Post# 21355809

RE: RE: RE: How could they pay the debt of $10m?

In January, they issued $260MM worth of debt and used that plus cash on hand to repay their $272.2MM loan, see https://www.shpacific.com/en/news/stp-2013-01-251.PDF. It does not mean they had positive cash flow in the quarter. They still have about $430MM in debt, with debt payments close to $40MM/yr. Plus they have about $15MM/yr in G&A expenses. Even at $35 netback, this is equivalent to about 5000 bpd for cash flow breakeven. They were not at the breakeven in the last quarter.

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