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 > Desjardins initiates STP at hold

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Post by Swingman24on Nov 25, 2013 10:01pm

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Post# 21940615

Desjardins initiates STP at hold

Anyone know the price target or have the commentary?

When end the price gets this low I go back to the liquidation value. Given the 56 sections of non producing land (80% WI) sold for $18.8 million back in September the rest of STP's non producing land is worth at least $105 million. Production transactions in canada this year have gone for approx $65k per flowing barrel. Last month STP produced 4,500 bbl/d so that gives us a value of $295 million. Add that to the non producing land value and we have a liquidation value of $400 million. Almost covers the debt with absolutely no value placed on production ramp prospects.

The he stock is cheap. May get cheaper, but it's cheap.

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