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 > wait

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Comment by nikeherculeson Nov 21, 2014 12:04pm

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Post# 23152191

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:wait

Guys,

Lutes in the AGM basically flat out said STP is headed to a reorganization and that it needs to attract additional capital for any more drilling.

During the Q/A questions on Senlac, he also mentioned STP doesn't have the time to wait 7 months for Pad L to get up to speed.

Lone Pine Resources (LPR), Oilsands Quest (BQI) and Pinecrest Energy (PRY) are more comparable. All had insufficient production to generate enough cash flow to keep the debt paid. They also couldn't attract any capital for more drilling.

LPR was taken over by the bondholders and recapitalized. BQI attempted to do a raise and failed, filed for CCAA protection and purchased by CVE for only $10 million. The banks are not allowing PRY to drill, instead they are using all the free cash flow to pay down the approximately $110 million in debt.

Take a look at ARN, EE, BOR - the calgary oil business is littered with these little sh#t companies that roasted shareholder value.

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