Southern Pacific Resource Corp STPJF

In the event of a sale

[ShatnersRug]

Admittedly, I have had no prior experience having owned shares in a company that was sold. How would shareholders be remunerated? Amount? Method?

[ShatnersRug]

I take the 'amount' part back from my previous post. It was more a question of how a buyer would valuate a company like STP.

[oilcansam]

STP has a big debt but then again its nothing to spend a billion just to buid a SAGD plant.  rtemeber the 101 exploratory wells etc.  this all takes money.  thats why i hope to hell STP will not be sold on a production value.  I would think some around 1-1.5B would be a fair price.  it all depends on how bad someone wants it.  The chinese/asians have deeeeep

[DBW077]

I like the idea of a buy out but what about the massive loan they just got?  Wouldn't a near-term buy out be something credit suisse would need to know about before granting that loan?

[oilcansam]

perhaps the loan was a play by Lutes just to show potential buyers that "we dont need to sell"  we have money in place to keep going.  If going to purchase something and i know  they are broke and have.  I will offer a low ball.  If they have money and they "dont need " to sell.  the offer will go up. my thoughts only.  i need another

[CatCatCat]

I think you nailed it Oilcansam...re valuations, with the Phase 1 expansion and McKay 2 approval looking to be back on track and the capital to carry this thing..that should definatley improve our bargaining power. I just hope Dave and the other board members are smart about this....either way, should be good premium to todays price, will be adding on the dip.

[DBW077]

Ya, I'm not too worried.  They sold their potential for a $150MM loan. I trust them with my few shares.  buy out or not, if the content of that press release was leaked I wouldn't think it would justify a 20% panic dump.

[Eyeinvestor]

We pondered all this at the time of the loan. We noticed that the coupon was higher than market but that there were relatively low hurdle for change in control. Change in control is expressly allowed and Credit Suisse syndicate receives 2% over par. Assuming a September closing, CS syndicate would have earned 7%. .....................................................................................

[oilcansam]

if the buy out is from a public company then i was offered a share exchange for the "purchase price" this offering was only in place after a vote of course.  The last take over i opted to sell my shares at a  I few pennies under the purchase price as chinese were involved and these deals are not always gov approved.  Another instance is a take over from a privvate co. 

[himmler]

First hand experience is what I have shat.Very complex procedure and all cases are different.Sometimes a dollar figure is arrived at in terms of net worth divided by share number.Rarely in the best interest of common shareholders despite  what what posters say (or hope) for.And despit what Lutes says its not the shareholders equity that anyone cares about (share value nonsense) Its only the

[oilcansam]

It's the duty of the board to " act in BEST interest" of the shareholder.  Now that can mean a lot of things. One would think meaning to get the most value as possible.  I hope.   As for future installations of ICD. It's a gamble that they will all work and it takes time.  Now lutes just gave a potential buy a "taste" of what potential STP has. Would

[oilcansam]

I am thinking the smart investor will hold today.  I don't really care what the share price is as I am holding. I wish  I could accumulate more but my banker said I need to give my head a shake.lol i hope to prove him wrong.  Great buying opportunity for anyone as the value of STP is not even close to the prices we have seen.

[freedom45]

Lutes has to prove McKay is viable first before anyone will buy it. why would a mid tier or senior gamble ? makes no sense. the value in the company cannot be fully realized without proven icd success. Lutes is not in the driver's seat and neither is his negotiation position. Spend the $10M and at least give me a merry Christmas!!!!

[oilcansam]

Sure companies buy on production but they look at the much bigger picture.  Reserves/land. STP has both and lots of it.

[freedom45]

ahhhh, the good ole days Written by Deborah on October 19, 2009 — Last week, emerging player Southern Pacific Resource Corp. announced it had purchased a producing steam assisted gravity drainage (SAGD) asset in Saskatchewan. As was widely suspected, it turns out Southern Pacific now owns one of the longest-running SAGD projects in existence–Senlac–formerly owned by EnCana. EnCana put the property