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 > 2018 bonds

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Comment by edmbondson Sep 08, 2014 9:52am

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Post# 22915126

RE:2018 bonds

This is good advice.

You can do the math yourself quite easily. Calculate the enterprise value by adding the market cap and the market value of all the debt. Make Credit Suisse whole in the calculation as they are getting their money back in CCAA.

You'll end up with $300-$400M depending on the value you ascribe to the 2nd Lien notes ($430M if you make them whole). You can then apply various metrics to put a recovery value on the enterprise. If your recovery value is higher than the market is acribing to the enterprise, there is upside. Make your own assumptions.

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