Southern Pacific Resource Corp STPJF

Round and round

[Backwardblade]

Had been following this thing for a while.  I am traditionally a buy and hold guy with huge sentiment towards either value or growing dividends.  This is, or at least was play money.  I  bought purely for the land at .58  I ended up with a value play.  I followed it down all the way to .24 where I averaged  and was lucky enough to check and get in at .12 as well.  My position was getting way out of whack with my portfolio and I sold a chunk at .22 yesterday to cover my previous losses.  Not a bad thing I think as I found myself pot committed as a trader when I am in fact NOT.  

No matter the politics, or your math, my take on this is that this is a land purchase pure and simple.  1.00 may happen.  They may go broke.  Some player may be picking up shares quietly on pennies on the dollar to back their dept.  Interest rates may spike and we'll have another OIL like cave in maybe.   I've tried the day trading, and it's not for me.   

The numbers say anything from .50 to .80 recently.  I have taken out huge discounts on production because forcasted and probable production is not in fact actual production.   It wil be worth a buck as soon as somebody wants to pay a buck.  Right now, based on the land and a gut added emotional trading value I see .40 or bust.

You can talk about the plant value all you want but plants are alot like tires.  They are expensive to buy but add nothing to the value of the car.  More often than not, bust oil/gas plays have often made millionaires out of scrap metal dealers.  Yes it will add some value to a JV or outright purchase but it won't be retail.  Or at least I wouldn't  think so.

Nice meeting you gentlemen....Opinions please

[Eyeinvestor]

Pretty similar investment style. I think the difference is that I see this as a "producing land play". I think the difference is important. Senlac is producing. It is much easier for potential investors/buyers to value than an exploration interest. McKay is a "troubled" producing asset. If anyone is interested or already invested in the McKay basin, then that steam generation

[Canoutchie]

Thanks for sharing your thoughts Backwardblade.  In fact, your first paragraph pretty much describes my situation almostly exactly to a T. After doubling down at 11.5¢ to 12¢, and then selling some of that at 22¢ and 23¢, I find myself still a bit more overweight than I'd like to be with this stock, but I'm prepared to hold for the next little while to see what

[ShatnersRug]

Land you say? Sure that's worth money but the debt and financing the debt offsets any land value. And what good are reserves if you have to suck then up to the surface with a straw? SAGD in this instance has failed.

[adamsight]

I disagree on this, its fairly well known they spaced them out farther than the normal operational protocols. Obviously somebodies math was wrong but oil is coming out. I think its got more potential now than 4 months ago as there is no wondering. They have come clean. I believe lots of people will make money as the price is so low. I doubt it will ever see $3.00 again, but maybe $1.00 pending

[JR5]

I believe you are right about the wells being spaced too far apart. There may be a less expensive option to drill another well just as a steam line and capture more oil or at least get the heat to where it would make the process more efficient in the adjoining wells. Would guess they have learned from this and will be drilling the next series of wells differently. Still makes sense for another

[nikehercules]

There's merit in both Shat's and Adamsite's comments. For me, the most critical question I want answered is: Can STP tell if they have a Pad 101 or a Pad 102 simply from core samples? I sure hope STP doesn't say to a potential partner/takever canadidate - well,  for Pads 103 and 104, we simply have to steam and find out! There has to be a cheaper way than spending $50