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 > Price

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Comment by nikeherculeson Dec 10, 2013 1:41pm

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Post# 21990754

RE:RE:RE:Price

I'm long, and the average is 0.42. My position is too large to trade in and out.

STP is tied directly to it's production. Last month was pretty bad, since everything seemed to go wrong.

Short term, we could be back in the 40's when the tax loss selling pressure subsides and if the production trend gets better. I was buying at 0.32 in the summer when it appared McKay was a bust - so I thought that was the bottom. That's where the debs bottomed out and then again tested the bottom during this downturn - but they didn't break through like the equity. Note that the debs led the equity during the last run up.

Internally, (and take this information cautiously) STP engineers are optimistic, and call for $1.00 within a year. They appear more optimistic now then they were in June.

I don't think bankruptcy is in the cards - STP should be able to get up to 5500 - 6000bbls within the next 6 months and they have cash and land. The debs are trading at a big discount, but not like bankcruptcy around the corner. Getting up to 12,000 bbls at McKay is a stretch though, so for those who bought in during the last equity offering at $1.48 might be waiting awhile.

Risks are continued operational hiccups - the sands are filled with these, so it will be a bumpy ride. Talk to any COS investor.

For traders - I think we're nearing the turning point. but there is a high risk somebody might just dump and send this thing materially lower - so catching the actual bottom will be tough. There are alot of shares outstanding.

Risk/reward for anyone willing to hold out until spring looks good provided STP manages not to burn down either McKay or Senlac.