GREY:STPJF - Post by User
Post by
nikeherculeson Dec 03, 2013 12:48pm
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Post# 21964493
Another conversation with the CFO
Another conversation with the CFOGents:
I tried calling IR - no luck, the CEO - no luck, but the CFO picked up. I had a few questions.
DISCLAIMER - Last time I did this the CFO said point blank to me all was ok operationally at Senlac and McKay - nothing was on fire and no oil was leaking to the surface. We all know what happened next. Below are my questions.
1) Holding existing rates after a few months of increases @ McKay - is this standard for SAGD?
Yes, we notice a few hotspots so we decided to back off. We'd been running them pretty hard for the past couple of months.
2) The current workover to improve conformance - has this been done successfully before in the patch?
Yes, it has worked before for other projects. We use it to isolate areas of trouble.
(Disclaimer - we know that perforating the wellbore (August update 1P4 and HPSS (1P1 & 1P3) didn't work out - so this is a wait and see game, Lutes said in the latest con-call they'll know by Christmas)
3) 3,500 barrels/day @ McKay - is this a realistic goal in the next six months?
Yes
4) Given October's setback, does STP have sufficient liquidity to see the ramp up through?
$17 million in bank, $35 million line of credit and operating loss of approx 1.5 million last quater. Yes
5) Why the crashing stock price?
We had a setback at Senlac so that spooked a few. Oilsands is just out of favour.
When i mentioned buying in the 20's today, he said STP has moved fast in the past, and not to get too "cute". He mentioned the quick move into the 80's a couple months ago.
I'm not sure if this adds any value to the public knowledge that's out there. Take this information for what it is, some guy on the Internet with a boatload of STP shares making a couple phone calls.
FWIW - I'm buying CPD for my monthly stock purchase. Nice safe index funds.