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.

GREY:STPJF - Post by User

Southern Pacific Resource Corp > MY GUESS

<< Previous

Bullboard Posts

Next >>

Comment by nikeherculeson Dec 04, 2014 12:58pm

401 Views

Post# 23195625

RE:MY GUESS

Here's my totally uneducated guess:

There's a slight change from last year's copy/paste - "Review of Capital Structure" in the title.

STP will now open discussions with the second lien debt holders about converting them over to equity. Hopefully a big fund owns alot of the second lien debt so they might be able to get some more $$$ for drilling and recapitalize.

Debentures and common are effectively finished - they will be offered 1%..maybe 2% of the new equity? It's better than zero which is what they would get in CCAA protection.

Are there circumstances when management can wipe out the common shareholders without a vote if insolvency is imminent? Does the TSX allow this?

<< Previous

Bullboard Posts

Next >>

The top 5 Canadian small-cap AI stocks