Southern Pacific Resource Corp STPJF

STP Break Even

[maramos98]

According to Canaccord, STP needs Mckay to be producing at ±4800 bpd to break even.

At the current pace, its a long way to 4800.

Lets hope for significant improvement in the June production numbers.  

from february :

"What’s the minimum that STP-McKay needs to produce to cover annual expenses?

Assuming Senlac production averages 4,000 boe/d, we estimate that STP’s heavy oil 

project produces $20-30mm a year in free cash flow based on our 2013 commodity price 

deck and heavy oil differentials of 20-30%. This covers ~45-60% of the company’s annual 

debt obligations and estimated G&A expense. To that end, we estimate that Southern 

Pacific needs McKay to produce at a minimum of 4,800 bbl/d, or 40% of capacity, to fully 

cover the remaining annual debt obligations and G&A expenses.

 

 

 

 

 

[kavephish]

Lutes stated last year as well that the break even point was between 4-5k bbls>

[adamsight]

The 5000 bpd is a be for McKay but corporately it is also 5000 bpd with senlac doing 3500 we are close to not loosing money ie no further burn. Look at nut taps fund he bought batted too its the summer and sell in may didn't really happen its happening now. My guess o. The drop at close is a collusion in shorting someone is shorting and someone else is selling at the end of the day. Of course

[adamsight]

Dumb auto correct . Nutal pushed battex look at his funds performance the last 5 years.  

[Pandora]

What are the odds this thing can go insolvent and into bankruptcy? Anybody support that or is everybody confident that Byron Lutes can work this out? What's the per share value of their assets? Are we under water at this level? Presumably any funds would go to debt holders anyway.

[Kel2]

They need a total of about 5,000 BOPD from McKay and Senlac to break even.