Southern Pacific Resource Corp STPJF

RE:RE:RE:RE:Observations

[monzie]

The odds are zero because they don't need 140 million dollars, they're looking for 51 million dollars to complete the drilling.  They have the 85 million line of credit as well as 23 million dollars in cash to pay for day to day activities and the ICD's.  The banks clearly have some trust in the company otherwise they wouldn't be willing to lend so much money.  I too will give Lutes and co the benefit of the doubt and assume that they know what they're doing and just need more time for things to come to fruition.  As far as I can tell the closest debt that we have to deal with isn't until 2016 so I'm not sure why everyone is assuming immediate bankruptcy or dire need for cash to survive.  They're looking for various options on getting extra money for the capex, they're not saying that if we don't get this money soon we will have to close up shop immediately.  They'll most likely sell some non core assets to get the capex money.  I'm not sure why all of a sudden people are assuming private placements and share consolidations and dillutions.