STP Break Even According to Canaccord, STP needs Mckay to be producing at ±4800 bpd to break even.
At the current pace, its a long way to 4800.
Lets hope for significant improvement in the June production numbers.
from february :
"What’s the minimum that STP-McKay needs to produce to cover annual expenses?
Assuming Senlac production averages 4,000 boe/d, we estimate that STP’s heavy oil
project produces $20-30mm a year in free cash flow based on our 2013 commodity price
deck and heavy oil differentials of 20-30%. This covers ~45-60% of the company’s annual
debt obligations and estimated G&A expense. To that end, we estimate that Southern
Pacific needs McKay to produce at a minimum of 4,800 bbl/d, or 40% of capacity, to fully
cover the remaining annual debt obligations and G&A expenses.