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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 nikeherculeson Jan 07, 2014 12:06pm
354 Views
Post# 22065820

RE:Any Rumors On Who Is Interested?

RE:Any Rumors On Who Is Interested?I don't have a specific candidate, but I did manage to get some tidbits:

1) CEO depressed during Christmas party - was a deal immediately forthcoming after the sale announcement? was it a lowball offer? Was there any interest? who knows....

2) Chad Harris (VP Exploration) was fired due to messing up the well drilling. This was anounced on November 6th.

3) "Any offer will be a lowball offer"

4) The oil is there, but they are acutely aware time is running out. I had worked out breakeven occuring in Q3 of this year - so obviously I am missing something from my projections.

Looking back at the December 7th release, STP calls for making $14 million per quarter on 7,000 bbls/day. Given those numbers, why put the company up for sale if you could simply use 11 months of cash flow to pay for the $51 million expansion on Pad 2?

5) Stress levels extremely high in upper management. Options worthless. Key people looking at moving on.

I sure hope zanadu123 is right! Congrats on getting some at 10.5 cents.
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