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Southern Pacific Resource Corp STPJF

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.


GREY:STPJF - Post by User

Comment by Canoutchieon Dec 19, 2013 11:37pm
308 Views
Post# 22025336

RE:Round and round

RE:Round and roundThanks for sharing your thoughts Backwardblade.  In fact, your first paragraph pretty much describes my situation almostly exactly to a T.

After doubling down at 11.5¢ to 12¢, and then selling some of that at 22¢ and 23¢, I find myself still a bit more overweight than I'd like to be with this stock, but I'm prepared to hold for the next little while to see what happens.

I've been in and out of this stock a few times, so I'm lucky not to be sitting with a huge loss, otherwise I might feel quite differently about management and the current situation.  My only concern with this company is that it is evident that there is someone in senior management with a severe case of "loose lips syndrome" - which can be seen from the runup in the stock price late last summer (before a release of good news), and even further evidenced by how hard the stock sold off prior to STP's poor news releases in November and December.  This makes it blatantly clear to me that someone in upper management has a big-mouth, which is currently my biggest knock against this company  (just my personal thoughts on the matter).

Clearly STP has oil, but as others have identified, how difficult will it be to get it out of the ground.  And will any other companies be willing to pay up for a JV of some sort... especially when dozens of other juniors, with proven reserves, have been trying to put themselves up for sale, with limited success.

So, I realize I haven't really given you much of an opinion, but the reality is that I just don't know what the outcome will be... it's somewhat of a binary situation...  it could be 15¢ on the downside, or perhaps double that on the upside.  I guess, with the apparently stabilization of the downward price trend, and with the end of taxloss selling in the next few days... I guess I'm willing to take the risk that there might be a little more upside here... especially if there's any whiff of good news.

By the way, some say that good news might be several weeks away... but I'm guessing that IF good news is coming to STP, then that "loose-lipped blabbermouth" (whomever it is) who's been leaking all this confidential news throughout the past year, will be kind enough to continue to leak news as various companies "kick the tires" so to speak, in terms of potential offers, buyouts, or potential JVs.  Rumours such as this might bode well for a bit of a recovery in the stockprice, perhaps to the upper 20's or even low 30's throughout the course of January (especially with taxloss selling).

Just purely idle speculation on my part though, as I'm not sure what's going to happen with this company; but I'm in it for the ride, now... so we shall see!

GLTA
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