Bullboard - Stock Discussion Forum Southern Pacific Resource Corp STPJF

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Southern Pacific Resource Corp. is a Canada-based company, which is engaged in the thermal production of heavy oil in Senlac, Saskatchewan on a property known as STP-Senlac, and thermal production of bitumen on a property located in the Athabasca region of Alberta known as STP-McKay, as well as exploration for and development of in-situ oil sands in the Athabasca region of Alberta. Its STP... see more

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Southern Pacific Resource Corp > Weekend homework!

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Post by Junit290 on May 17, 2014 2:55pm

Weekend homework!

Happy long weekend!

Question for all those who are better at financial math than me, given what we know about the current finances available to the company, if they spend the 18.8 million on Senlac and the 10 million on ICD's, how long would the company have before they ran out of money in the event nothing happened with production ramp up?

Am am I reading correctly that they lost 13 million on the quarter?

I am very bullish on the company, these are just questions that I cannot answer myself!

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Comment by Duxing on May 17, 2014 3:55pm

I try to calculate in a different way. In Q3, STP production in Janurary was 500 bod lower than Feb and Mar. That is total 15000b. We assume all other condition remain same, and average crude price for STP MacKay inQ3 was 86, and we guess the cost of pulling this 15000b oil out of ground and handling for sale would have been 20 dollar if STP would had no such production loss. The loss ...more

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Comment by Duxing on May 17, 2014 3:57pm

Typo. From 2200bpd to 4200bpd.

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Comment by Junit290 on May 17, 2014 4:07pm

Your using 15000b, what exactly do you mean by that?

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Comment by Duxing on May 17, 2014 5:51pm

junit, 15000b is the total production shortage in Jan compared to that in Mar or Feb. There will no such shortage in Q4. In other words, MacKay daily average production rate in Q4 shall be 2200bpd or higher compared to 1987bpd in Q3 without further ICD installation. This will bring down the quarterly net loss by 1 to 2m.

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Comment by Junit290 on May 17, 2014 4:16pm

Never mind my last question. Brainfart. So if they have 60 mil in the bank now, minus 28.8mil would leave 31.2mil. So we could assume they have a garanteed 6 months or 2 quarters before they ran out of operating money. I think I read it only takes 3 months from spud to first oil in Senlac and in 3 months time out current ICD's should be delivering steady production and increasing that ...more

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