Southern Pacific Resource Corp STPJF

RE:RE:RE:RE:RE:RE:RE:RE:RE:July production out of McKay

[farmerman]

With wells shut in in July that were producing, 2 wells with zip for production and 3 icd's at 860 bpd for a total of 2000 barrels I am impressed The would have 3 wells shut in for sure
if average production was 150 bpd for them thats a c-hair from B/E right there....
where one had been higher (900bpd) and fell back along with the installs going on now I suspect B/E at 2500 bpd will occur by mid Oct with 3000 bpd by month end.
Senlac is a known quantity, they need to show their lenders that this play can get something with icd installs going. The understanding I have gleaned is corporate break even is higher and adding Senlac should get them there the key is to make a profit from the plant operating costs at mckay and 3000 bpd should do this. Then they can borrow more, dip into the market or sell out to a larger company. If it was going to go broke why would they not insure their jobs by taking the deal that was on the table. Because they want money for their stocks and options If the company is on a 50/50 option plan that means they were paying .09 and felt the company was worth more doesnt it?
I suspect Mckay will produce 4500 bpd by Mid November and the money for senlac will have been made available. I dont see a consolidation occurring until sale options have come off the table.
Now what will the shares, bonds and debentures be worth when B/E at mckay occurs, who knows...
But the value will be alot higher if its 750 million to build a plant like mckay
150 million for one like senlac and all the reserves
surely the stock is worth .50 and the rest 50%
Bare in mind to full cap senlac and mckay they need about 130 million more....
Call me crazy
Bash me
Say I am an idiot a pumper what ever, I suspect they will bring this back to be a 5-10 bagger for new investors.
Dave
due your own due diligence and gamble away