Southern Pacific Resource Corp STPJF

Throw my estimate out the window

[nikehercules]

It's great getting a hold of real numbers to test out my finance models. I hope I didn't make the same mistake with COS.

Earlier I mentioned STP would lose $2.7 million per month operating. The real number is $4.6 million per month and that's without any interest payments.

Take a look at page 532 on the court application for the cash flow statement. Note they project spending $7.4 million on operating the plants and $8.7 million on transportation over 13 weeks.

https://www.pwc.com/ca/en/car/stp/court-application.jhtml

Don't open the document on your phone, it's 18 megs.

[steve0]

So is that it are we done did we lose all our money?

[Pandora]

If you're a common shareholder you can pretty much kiss it alll goodbye. If it's in a cash/margin account you can claim the loss on your tax return next year. If you had the shares in a registered account such as an RRSP, RIF or TFSA you do not get to claim any loss -- it's just all gone. One thing to remember -- if Lutes shows up again in another company it is probably not a good

[perdikaoilgas]

It is so sad to see this. But that was expected because STP had so much debt. I think this is the typical ending with the leveraged players. 

[perdikaoilgas]

It is also very likely that PRY (Pinecrest) will be the next victim.

[nikehercules]

You could read the court documents, or save yourself some time and watch BNN. https://www.bnn.ca/News/2015/1/22/Energy-Watch-Southern-Pacific-first-in-oil-sands-to-seek-creditor-protection.aspx