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

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Post by Dutchie2400on Jun 03, 2014 4:03pm

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Post# 22626408

Equity Dilution Coming

Pricte action smacks of dilution coming. They can't issue anymore debt and pending sale should be supporting the stock. I expect each shareholder will be given the right to subscribe one for one in additional shares raising $50 to $70 million. Redux Energy did this years ago at 20 cents/share and ended up selling shortly thereafter at 90 cents.

Yes, it makes little sense to issue new shares at sub 20 cents, but STP options are limited. I would prefer they sell all leases except for Senlac and McKay to raise cash. Too bad they didn't sell some more shares at $1.45.

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