Southern Pacific Resource Corp STPJF

RE:hold or sell

[Junit290]

I'm holding. As we saw with the latest submission to the AER that the 1p5 well didn't increase a lot after it's first bump up but because the well was so unconfirmed it may take a few months to heat up and realize any meaningful increase. You gotta think that steam was only reaching a single steam breakthrough and was channelling out the producer. I don't know the exact length of the horizontals but there's lots of oil left to warm up. We want to hear that they are drilling Senlac. That will bring STP to corporate breakeven production which obviously buys time and increases company value. Everyone needs to bear in mind that STP Holds lots of land and has a pretty good rail agreement in place that a partner could potentially take advantage of right out of the gate. STP is close to figuring this out. If you look at a technical point of view, Bolinger bands to be specific, it's beginning to narrow out due to hardly any share price movement and over time this creates the likelihood of a potentially large breakout in one direction or the other given a decent news release or vice versa. I'm betting that 2p5 will spike in a month, they will release something and boom. They have money to last at least 9 months at current operating costs even after they spend 38.8 million on drilling Senlac and 9 remaining ICD's at 1 million a pop. A company that is lookin at partnering would be stupid not too as STP is a turnkey op, spend 50 million on infill wells, being turning a profit right away and go from there.