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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 Eyeinvestoron Apr 10, 2014 12:51pm
226 Views
Post# 22435653

RE:RE:The jigsaw puzzle

RE:RE:The jigsaw puzzle
To be fair....Eye was the one calling for a major refinancing with a term note between $100 -$150 million when other on this board were speculating about asset sale or raising $17m here or $20m there. .................................................................................................................... But eye am my own harshest critic and eye am not convinced that we have assembled the puzzle correctly. .............................................................................................................................................................................. There is no way we are cash flow breakeven in June, nor does the company need to be breakeven by June. It will take time ...and they have time! It will take time to get permits for and install ICDs it will take time for the wells to conform , outside of merely pushing more oil through those parts of the well that are already conforming. But leaving that debate to one side. Why the early call feature on the debt? Why the covenant that allows for more debt ? One seems to contradict the other. Maybe its not all bots? Maybe some folks are genuinely confused. But it seems to me that if we examine each of these scenarios carefully and fully...they are both good outcomes. .............................................................................................................................................................. I prefer the JV/sale of working interest because it gives transparency of value and removes the whole credit uncertainty that overhangs the stock at a stroke. But the alternative is good as well.
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