Southern Pacific Resource Corp · OTC:STPJF
Southern Pacific Resource — Shareholder Meeting (November 2010)
22 slides from Southern Pacific Resource's shareholder meeting presentation, Nov 22, 2010
Slide 1: 2010 Annual General Meeting
2010 Annual General Meeting November 22, 2010 TSX: STP
Slide 2: Reader’s Advisory
Reader’s Advisory Forward-looking Statements: All statements other than statements of historical fact may be forward-looking statements. These statements relate to future events or Southern Pacific Resource Corp.‟s (the “Company”) future performance. Forward-looking statements are often, but not alw
Slide 3: Now it’s real
Now it’s real • real projects • real production • real opportunities • real results • really good people!! 3
Slide 4: Overview
Overview Shares outstanding - Basic (pro-forma NPE effective Nov. 24, 2010) 336.9 million Shares outstanding - Fully diluted (pro-forma NPE effective Nov. 24, 2010) 358.6 million Recent price (Close on Nov. 18, 2010) $1.40 Market capitalization – Basic (pro-forma NPE effective Nov. 24, 2010) $471.7
Slide 5: Real Project: STP-Senlac Thermal Project
Real Project: STP-Senlac Thermal Project • 4,000 – 5,000 bbl/d for the next 10 -15 years • Best in class SOR of 2.0 – 2.2 • Experienced operations personnel 5
Slide 6: Real Production: STP-Senlac Thermal Project
Real Production: STP-Senlac Thermal Project • Averaged over 4,200 bbl/d from Nov. 3, 2009 to June 30, 2010 • September 1 to November 20, 2010 average has been 4,594 bbl/d • Two infill wells added in September, which have added 600–800 bbl/d • Target is to keep plant filled between 4,000 – 5,000 bbl/
Slide 7: Senlac Netbacks
Senlac Netbacks $90.00 $80.00 11.79 $70.00 2.11 8.94 Lloyd Differential to WTI $60.00 4.27 Qual/Transp. Adjustment 5.43 ($C/bbl) $50.00 Diluent Cost 8.94 OPEX - Non-fuel $40.00 OPEX - Fuel & Power $30.00 Royalties 38.97 Operating Netback $20.00 $10.00 $0.00 $US 77.40 /bbl (FX = 0.96) Cumulative oper
Slide 8: Phase H SAGD Well Pairs: Drilling in progress
Phase H SAGD Well Pairs: Drilling in progress • 1st pair is complete • 650 m of high quality reservoir • 2nd pair is currently drilling Phase G • Production expected in February 2011 H1 SAGD Pair 8
Slide 9: Real Project: STP-McKay Thermal Project
Real Project: STP-McKay Thermal Project • 45 km NW Ft. McMurray Suncor MacKay • 10.5 section project area SAGD Project • 100% STP working interest STP Lands • Regulatory approvals in place • Road Construction has commenced STP-McKay Thermal Project 9
Slide 10: STP-McKay: Project Details
STP-McKay: Project Details • Design Specifications: • 12,000 bbl/d bitumen • 33,600 bbl/d steam • 2 initial pads • 12 SAGD well pairs • 3rd pad approved and ready to go • +95% produced water recycle • Cogen power supply • Infill well design incorporated Initial Pads Road and Gas Pipeline Plant Site
Slide 11: STP McKay Road: Under Construction
STP McKay Road: Under Construction • First Segment - 8.9 km – STP 50% working interest and construction operator – Entire road has been mulched – 5 km has been built • Second Segment – 20 km – STP 100% working interest – Commencing construction shortly after completion of Segment 1 – Expected comple
Slide 12: STP-McKay Phase One: Capital Spend Profile
STP-McKay Phase One: Capital Spend Profile • Total Capital Cost is $ 408 million (excluding contingency) • Spent $9 million as of September 30, 2010 $55 $50 Roads Civil Work (Plant, Pads, Camp) $45 Drill & Complete 18 Well Pairs $40 Well Pad Facilities Central Plant $35 Supporting Infrastructure $30
Slide 13: STP-McKay Phase One: Project Financing
STP-McKay Phase One: Project Financing • Corporate Equity – Raised $108.1 million in May, 2010 – Continued strong cash flow from Senlac (~ $60 million per year) • Debt Financing – STP has engaged 4 major banks to syndicate debt • BMO, CS, RBC and TD – Have set up a „flex finance‟ plan • a number of
Slide 14: Real Opportunity: STP McKay Phase 2
Real Opportunity: STP McKay Phase 2 • 2010/11: – 30-35 corehole program – Additional watersource wells – Environmental studies • Expansion Application submission expected in summer 2011 • 10 – 20 mbbl/d: final size after winter‟s delineation Phase 1 Phase 2 14
Slide 15: Real Opportunity: Red Earth Thermal Project
Real Opportunity: Red Earth Thermal Project • Recent Acquisition of North Peace Energy • 135 sections of land Pilot Project • Existing 1,000 bbl/d thermal project Lands 15
Slide 16: Red Earth: Significant Bitumen in Place
Red Earth: Significant Bitumen in Place • 2.1 billion barrels of discovered bitumen • 105 million barrels of contingent „best estimate‟ resource • To date, horizontal well cyclic steam stimulation (CSS) has been the expected recovery mechanism • 10,000 bbl/d thermal project is the initial target 16
Slide 17: STP-Red Earth: 1,000 barrel per day Pilot Project
STP-Red Earth: 1,000 barrel per day Pilot Project • Facility is currently suspended • Initial remedial concepts to test in the first half of 2011 • Development plan to be formulated based on these results 17
Slide 18: Real Opportunity: Additional Oil Sands Leases
Real Opportunity: Additional Oil Sands Leases Anzac 14 coreholes 2D seismic, ERT Hangingstone 75 Sections 29 coreholes 2D seismic 66 Sections Ells 15 coreholes Leismer & Kirby 2D seismic 29 coreholes 50 Sections 2D & 3D seismic 51 Sections 18
Slide 19: Real Results for Fiscal 2010
Real Results for Fiscal 2010 • Cash Flow: $35.8 million • Reserves: 2P Reserves increased 164% to 178.6 MMbbl • 2010 TSX-Venture Top 50 “Oil and Gas Company of the Year” • Delivered strong results in challenging economic environment $450 $1.40 $400 Market Capitalization ($ million) $350 $1.20 Share
Slide 20: Really Good People
Really Good People Jonathon Reid Mathew Woroniuk Jose Gutierrez Randy Sewell Kerry Ganter Randy Morin Luke Middleton Regan L'Heureux Lyle Eyben Shawn Ralson Aaron Merkel Sheldon Heck Chris MacDuff Bonnie Kohlman Vincent Seim Lore Robichaud Carole Gold Brad Del Frari Adrian Dodds Michael Heath Carrie
Slide 21: 2011: What’s next for STP?
2011: What’s next for STP? • Execution of STP-McKay Thermal Project – Construction of the project on time and on budget will be primary focus of 2011 • Preparation of STP-McKay Phase 2 – Expect to submit an application in the summer of 2011 • Development Plan for STP-Red Earth – Test using existing
Slide 22: Contact Information
Contact Information Suite 1700, 205 - 5th Ave. SW Calgary, AB T2P 2V7 Phone: 403-269-5243 Fax: 403-269-5273 Email: info@shpacific.com www.shpacific.com TSX:STP For more information: Byron Lutes, President & CEO Ron Clarke, COO Howard Bolinger, CFO blutes@shpacific.com rclarke@shpacific.com hbolinger
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