STP

Remember before the financial crisis when STP shares were up actually over $4. Then all of a sudden share prices crashed and ended up actually at the 0.4 level. What happened? Well we got hit by a liquidity crisis and there was no money to be found nowhere to get projects funded and in that process a "revaluation" of exploration and junior plays happened.

Before STPs current CEO Mr. Byron Lutes got on board all you needed to show was for more or less was land possessions. So first priority was to purchase land and only with these possessions you could get a fairly decent SP valuation. Then second priority was to explore these possession e.g. core hole drilling and work towards getting some proven oil reserves. So you where in fact able to get a very decent SP valuation and still not having earned a single buck out of own production.

That then all changed with the liquidity crises and that model of valuation simply got trashed. So with Mr. Lutes on board a new strategy was executed now it was all about getting in to production mode ASAP by focusing on smaller areas in to production rater that flying all over the pace spending mode on e.g. core drilling etc. That then was a controversial strategy and some analyst actually left analyzing STP. These people are now however back on board again.

So given these financial turmoil times you today really need production and own cash flow to finance you development and exploration. If you don't have it you'll likely get trashed. So now with STP developing from a land possessions play to a genuine and in fact experienced producer (with the acquisition of Senlac that in fact was a immensely important move ) we have seen STP move from
.04 to now close to $2.

By now everybody understand STP has the necessary recourses, skill, experience, permits etc to become real successful. Then now in that process all other not yet developed STP land possessions and opportunities will be upgraded valuation vice as well.

Then personally and as Peak Oil unfolds coming years and decades I would not be surprised if not yet another valuation model get in play. As fiat Currency’s gen more and more debased and as oil becomes increasingly valuable then why would anyone in their right mind want to pump up all that oil that just gets more valuable the longer you wait and as compensation for that valuable oil that you give to the market you get fiat currency that just keeps getting more and more debased the longer you wait? By then again it's not unlikely that company’s able to survive with own production will try to just keep their reserves as their reserves valuation keeps increasing the longer they wait getting it up from the ground.

One king of Saudi Arabia expressed something similar when he stated something along these lines just recently:
"better we keep the oil in the ground for coming future generations."
http://m.theglobeandmail.com/report-on-business/commentary/jeff-rubins-smaller-world/what-does-king-abdullah-know/article1645963/?service=mobile

Conclusion - what a blessing STP CEO Mr. Lutes has been for this company and the way he and his management team has worked towards getting STP in best shape possible. Future for STP now looks brighter than ever.