STP.v news out and while its not good news in that the previous increases didn't factor in their 80% ownership factor, it should be interesting to see how shaky the stock price gets tomorrow. Might be able to accumulate some shares for less than the stock price was before any additional reserves were reported and when crude oil prices were in the mid-60's.
CALGARY, Nov. 6 /CNW/ - Southern Pacific Resource Corp. ("Southern Pacific" or the "Corporation") (STP - TSX Venture) has been advised that the reserve report prepared by Degolyer and MacNaughton Canada Ltd. ("D&M") for the year ended June 30, 2007 contained a calculation error, related to the Corporation's ownership percentage of its reserves. The report as originally prepared estimated the probable and possible reserves on a 100% of the property basis and not on the 80% interest which Southern Pacific holds. The best case contingent resources of Southern Pacific which were previously reported as approximately 689 million recoverable barrels were reported with the correct ownership percentages and do not require any adjustment.
The reserve report was prepared by D&M, effective June 30, 2007 estimating the extent and value of the probable and possible reserves on the initial 25 sections of land at Leismer. This represents approximately 11% of the total land holdings of the Corporation and applies to only one of its areas. The Corporation has a total of 217 sections of land in five areas. The report is the basis of Southern Pacific's Statement of Reserves in its Annual Information Form for the year ended June 30, 2007.
The original amounts estimated by D&M were probable reserves of 116 million barrels and possible reserves of approximately 82 million barrels. The corrected amounts are probable reserves of approximately 92.6 million barrels and possible reserves of approximately 65.8 million barrels. The adjustment is due to a mathematical error only and is not a technical revision in reserves or resources.
This revision does not affect the business plan of the Corporation with respect to its exploration activities during the upcoming season.
AI
