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Bullboard - Stock Discussion Forum Southern Pacific Resource Corp STPJF

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

GREY:STPJF - Post Discussion

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Post by whatabuck on May 28, 2014 10:17am

D-Day Coming

Decision time. If your in the money set your stop. If your like me, determine how much of a loss you are prepared to lose and be ready to move quickly. STP management advised that Strat review would be completed by May 31. I expect an announcement this Friday/Monday. It has been over 5 months since the Company started the strat review and I can't see it going much longer. As a refresher here is the company statement from the May 7 MD&A report on the STP website.

The interim condensed consolidated financial statements are prepared on a going concern basis. The going concern basis of presentation assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. As at March 31, 2014 the Company has not yet achieved profitable operations from STP-McKay Phase 1. For the three and nine month periods ended March 31, 2014, the Company reported net losses of $13.2 million and $42.0 million, respectively. The above factors result in a material uncertainty which casts significant doubt upon the Company’s ability to continue as a going concern.

The ability of the Company to continue as a going concern is dependent upon, among other things, achieving profitable operations, completing debt or equity financings, entering into a joint venture or sale of a portion of the Company’s assets in order to have sufficient funding to meet its obligations as they come due. There can be no assurance that the Company will be able to complete any of these matters under terms favorable to the Company.

Comment by Junit290 on May 28, 2014 11:40am
Buck-your right about setting a stop. Good idea, but I'm prepared to ride this out. This is long term, and when you consider all we need to do is pull the trigger in Senlac and voila 4 months later we have 2000boe and that on too of any incremental production at McKay, we should have corporate breakeven. It'll be cutting it close but it's definitely doable. It might be a guy wrenching ...more  
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