Southern Pacific Resource Corp STPJF

Energy Oil & Gas E&P

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.

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Southern Pacific Resource Corp > Breakup fee

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Post by ShatnersRugon Jun 03, 2014 8:51am

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Post# 22623875

Breakup fee

Assuming there is a deal on the table but fails to come to fruition, STP should receive a breakup fee from the interested party.

Various sources estimate a % value of the deal as fair. However, what if this strategic review process lasts for a couple of more months. Would 1-3% of the deal be sufficient to cover STP for its losses? Could the breakup be exceed this 1-3% figure to more accurately reflect the STP's incurred losses?

Anyone have experience with this?

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