Southern Pacific Resource Corp STPJF

Lets do some math

[nikehercules]

They have 15 million in the bank.

On 4700 bbls/day they lost approximately 1.5 million on opex last quarter.

Lets say they produce 4200 bbls/day for the next quarter. That's 500 bbls/ day missing.

Over the three months, that's a 4 million dollar shortfall ( 500*87.88*90).

Next quarter operating loss of 5.5 million.

The rig bill on mckay will be big.

Drilling the new three well senlac pad will not be cheap - are we in the millions?

They will most likely burn through their bank balance by the end of summer. Will the bank let them tap the remaining 35 million left on the line of credit given this update? Would you, if your job was on the line at the bank?

Thoughts anyone?

[Eyeinvestor]

I'll take a shot at the math. At end September, they had $17m in the bank and $35m capacity on the revolver loan, so net cash available is $52 million. The bank cannot close the revolver. Anyway, the bank is secure because it is the senior creditor (the bond is called second lien for a reason). The assets of STP are worth a lot more than $100 million so the bank isn't worried. Operating