Southern Pacific Resource Corp STPJF

Scurvy be damned!!!

[ShatnersRug]

Eyeinvestor is absolutely right!

I was convinced that a deal was in the works because of the cost to the company involved in delaying Senlac. However, we're not looking at a joint venture at all. A JV at McKay has nothing to do with Senlac's operations. Why would a capex freeze for STP as a whole be in place?

A sale is the only reason for Senlac's halt in prepping Pad L.

I was on the trail, but was only able to narrow it down to two suspects. A JV or sale. However, with the aid of Eyeinvestor's bigger magnifying glass, I am convinced that the JV possibility doesn't hold water anymore.

The $64,000 question is How much will STP be sold for?

Answer: I haven't a clue.

What I do know is what Eyeinvestor pointed out. All of the top brass, board members, and large stakeholders at STP hold common stock. They won't let her go for a quarter, that's for sure.

Question: In the past, when a sale has occurred involving a publicly traded company, what was the largest spread between common stock value and dollar amount per share?

Shat-

[Duxing]

The company says they will continue to install ICDs in a consecutive manner to control cost. Does this hint a deal nealy reached so that they can proceed with the work? Or on the opposite side, the deal failed, they back on track?  Just to have everybody calm down and think.

[oilcansam]

One ICD at a time to limit costs. I truly don't understand this other than the decrease in current production from the shut in ,clean out of the well.  Why would it cost more to do 5 wells at a mill a piece other than one well at a time at a mil a piece.  Still equals 5 mil.  It doesn't cost more to get 5 service rigs in at once and work on 5 wells then it does for one rig

[monzie]

One ICD at a time to limit costs. I truly don't understand this other than the decrease in current production from the shut in ,clean out of the well. Why would it cost more to do 5 wells at a mill a piece other than one well at a time at a mil a piece. Still equals 5 mil. It doesn't cost more to get 5 service rigs in at once and work on 5 wells then it does for one rig to work on 5 wells

[prairieboy1]

Oilcan, When I'm trying to find a good contractor that knows their stuff and weed out the ones that do not, I test their expertise on projects one at a time. There are half a dozen contractors that offer ICDs and from what I hear, not all of them are good. Getting success from installing an ICD is part art and part science. Maybe that's the reason....but who knows......

[freedom45]

Personally, I do not believe Lutes wants to sell or JV anymore.he knows they will be cash flow positive this year and the money to back it. But, is it sensible to believe a foreign investor would offer to clear the debt for 50% of the company ? Just throwing ideas out there. Way out there ! Southern Pacific Resource Corp. is engaged in the thermal production of heavy oil in Senlac, Saskatchewan on

[oilcansam]

Yes, I agree. It's either Weatherford , Halliburton or perhaps schlumberger .   As for installation.  It's a service rig. They are all the same .  It's the program of where to install the icds that take a bit of time.  They generally go in the hot spots where direct channelling has occurred.  For this they need to instal temp sensors all along the pro string. .

[tp0052]

oilcansam, It is physically impossible to get 5 service rigs in at once. There is really one room for 1 rig per 6 well pad due to spacing. Cheers

[oilcansam]

Ok. So that's the answer to that question. Perhaps another rig on pad 2 though.   I am sure he stated in the conference call" one ICD at a time to limit costs". Maybe I am mistaken 

[Backwardblade]

Another speculation on the time delay of ICD intallation:  Is is possible a very acceptable offer was made....Lutes says "SOLD"!....Buyer says "hold on...maybe plug in one more ICD, while we are going through our DD.  We will make it contingent on this, and you were going to do it anyway" -Cap-ex is effecitively halted -ICD installation is slowed down, under the

[Eyeinvestor]

Nah. Much more likely is Deal is nearly done. Buyer has their own engineers. "Stop all your capex. We'll review the program. Thanks for your help. We'll take it from here...oh and don't forget to take your coat and all personal effects on your way out"

[freedom45]

R we reading this paragraph correctly. The first half talks about finalizing the install at $10M cost. The second half talks about the next phase or several more after the $10M install from how I read it. Wishful thinking or ?...................... The Company has plans to install additional ICD configurations on certain well pairs at McKay. The program is currently being finalized and once

[oilcansam]

Well 10 mil will do 10 pairs as I see it.  As for setting the bar at 7000b.  He is just being cautious and realistic.  The stock has taken a hit now.  So what happens when the 2015 hits and your not at 12000b sinking like a stone again.  If STP exceeds 7000 then up it goes.  They know now what they can expect from each well pair with the addition of icds . So why set

[oilcansam]

Sorry shat. I don't mean to throw a wrench into your and eyes theory but the is another reason why there has been no activity in the Senlac field.   SPRING BREAKUP.  It started in the middle of March .  Road bans in effect on all secondary highways etc.  so in short this means that No heavy equipment allowed on the roads or in the patch.   Thats why the gentle mans

[Junit290]

I thought the conference call/NR specifically suggested the drilling and ICD installation were put off until the strategic review was finished?! 

[Billionaire_2B]

In the Q&A is was mentioned that implimentation would take but a week. and ICD's are on site and ready to go. I expect some nice surprise news release sooner than anyone expects. As stated the current share price does not nearly reflect the true value, and the company is getting closer to break even #'s every day. Once they do it, an extra 500 flow would mean 1.5M profit per month

[monzie]

"I thought the conference call/NR specifically suggested the drilling and ICD installation were put off until the strategic review was finished?!" Well you can look at this way too, the presentation was written/created on May 1st where they don't mention anything about the ICD and Senlac initiatives being halted in fact they even ordered the ICD's to install, and then

[Eyeinvestor]