Southern Pacific Resource Corp STPJF

RE:RE:RE:RE:Round and round

[nikehercules]

There's merit in both Shat's and Adamsite's comments.

For me, the most critical question I want answered is:

Can STP tell if they have a Pad 101 or a Pad 102 simply from core samples? I sure hope STP doesn't say to a potential partner/takever canadidate - well,  for Pads 103 and 104, we simply have to steam and find out! There has to be a cheaper way than spending $50 million on a pad and rolling the dice. I hope to get that answer by the end of the holidays.

I also wonder what Brion is thinking and Grizzly given the STP saga - will my McKay basin project run into the same problems?

STP does have large reserves, but that has been known for quite some time. Also, STP was cheap at 0.50, 0.40 and now 0.18. No matter how much wealth a company has, miss a bond payment and the equity loses everything.

According to my earlier calculations, STP does have a chance to survive - provided oil prices remain high, McKay shows slow but steady improvement and no other disaster befalls them (ie interest rate boost). The long term debt isn't due for awhile, but other's have said the revolver wil need to be renewed in 1-2 years. If they do breakeven, STP will have very little wiggle room.

As another poster said, this is a binary operation. Win or lose, Sink or swim.

Let's hope a partner/buyer comes out of the woodwork soon.