Southern Pacific Resource Corp STPJF

Netbacks Q3

[ShatnersRug]

I know it's a little early to be talking calendar Q3 numbers, but with ramp-up issues being addressed, WTI price up($105/$106 right now), and much more favourable WCS pricing, my feeling is that shareholders will be breathing a little easier come autumn. After all, the majority of Senlac production is sold at WCS pricing(as of yesterday ~$91). Operating netbacks should be, all things being equal, much improved Q over Q.

In addition to oil price and production profile, I have used the deb price(stp.db) as a barometer when analyzing STP as a potential investment. Today it once again hit a new low. However, it was on little volume and has since bounced back nicely. Having said that, I have thrown my hat into the ring once again and reopened a position in STP.

C'mon STP! Shatner needs a new rug!!

[mjh9413]

I'm curious as to comment on Senlac and where its bitumen is sold. Is it really just railed/trucked/pipelined in Canada? And do you reckon McKay may be diverted to Canada without penalty?

[ShatnersRug]

47% of Senlac oil went south according to Q1 operational results. The balance was sold in Canada. With respect to the oil going south, should better pricing be found elsewhere than Gulf coast, STP mentioned that shipments could easily, and @$2-$3 per barrel(from memory) be diverted to Chicago for better pricing. All in all, I do not believe that access to the gulf coast hinders STP's bottom