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 > STP halt

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Comment by nikeherculeson Jan 28, 2015 1:09pm

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Post# 23372926

RE:RE:RE:RE:RE:RE:STP halt

babus, budworm,

I hope you two didn't lose too much money and you guys walk away from this a little wiser.

After watching 2P1 decline then flatline on IHS it was obvious something was wrong with the ICD's. STP needed 6,000+ bbls/day to break even with $90-$100 oil. With Senlac decline and McKay wells pushing out 300bbls/day this looked less and less likely. All these facts were discussed here on Stockhouse.

As an exercise, take a look at the projected cash flow statement in the bankruptcy filing and decide if drilling the additional McKay wells for $51 million will get STP to operational breakeven in 18 months.

Pretend you're a second lien noteholder, do you sell or hold?

Stay diversified my friends!

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