Southern Pacific Closes Senlac Acquisition

Efterlängtad nyhet som STP i går med hyffsad omsättning gick upp över 7% på. Stängde på 0.6. Nu börjar resan som i steg ett kommer att ta STP upp emot och över C$1 strecket. Ni minns väl "implied value as per comparasion to Petro Chinas AOSC aqusition" i tidigare STP inlägg här på detta forum? Allt i takt med att bolagets värdering som renodlat exploateringsbolag alltför undan succesivt kommer att ersättas med en värdering relevant för ett produktionsbolag med egen intjäningsförmåga och cash flow. Eller rättare sagt som ett bolag med egen och växande cash flow och betydande framtida expantions och intjänings potential. Det är i jämförelse och möjlig framtida utväxling som att köpa ett derivat med hävstång. Fast i detta case, i ett papper som i motsatts till derivat, har ett verkligt och konkret underliggande värde.

Allt i takt med bolagets möjlighet att öka sin framtida produktion och öka sina reserver i en miljö med ständigt stigande olje pris kommer STPs framtid att se allt ljusare ut ju längre tiden går.

CALGARY, ALBERTA--(Marketwire - 11/03/09) - Southern Pacific Resource Corp. ("Southern Pacific" or the "Corporation") (TSX-V:STP - News) is pleased to announce that it has closed the acquisition of Senlac Oil Ltd. for a net purchase price of $89million. The acquisition includes facilities, personnel and assets that have produced an average of 5,100 barrels of heavy oil per day since the effective date on June 1, 2009. Southern Pacific announced the acquisition of Senlac Oil Ltd. on October 9, 2009 (the "Senlac Acquisition").

The Senlac Thermal Project continues to perform better than forecast by Southern Pacific. Since June 1, 2009, the effective date of the Senlac Acquisition, the heavy oil produced at Senlac has received a plant gate price equivalent to $C 59.82/bbl, after all heavy differentials, diluent and transportation costs have been deducted. Royalties over the same period have averaged 15.4%, ($C 9.21/bbl) and operating costs have averaged $C 7.53/bbl. This has resulted in an average net operating income of $C 43.08/bbl over the period of June 1 to October 31, 2009.

Using strip pricing and reasonable estimates for input costs and royalties, Southern Pacific has budgeted Senlac to generate $C 11.5 million in net operating income for the remainder of 2009, and then $C 56.0 million in 2010. This cash flow will be utilized to fund the next phases of development at Senlac, detailed engineering on the STP-McKay project, and Southern Pacific's winter core hole program.

Southern Pacific believes the Senlac Acquisition has greatly enhanced its ability to finance and proceed with the STP-McKay project in a timely manner. Further, the experience gained through the Senlac Acquisition should result in operating efficiencies at STP-McKay once the project is completed.

Southern Pacific has scheduled a conference call to discuss the Senlac Acquisition and recent corporate developments. The call is set for 9 a.m. Mountain Standard Time (11 a.m. Eastern Standard Time) on Wednesday, November 4, 2009. To participate, please call 416-695-6616 or 1-800-952-4972. A presentation by Byron Lutes, President & CEO, Southern Pacific, will be followed by a question and answer period. If you are unable to participate, a taped broadcast will be available until November 9, 2009. To access the replay, dial 416-695-5800 or 1-800-408-3053. The pass code is 6106870#.

http://finance.yahoo.com/news/Southern-Pacific-Closes-iw-3320324651.html?x=0&.v=1