Southern Pacific Resource Corp

What Southern Pacific Resource Corp does

Southern Pacific Resource Corp. was a Calgary-based, Alberta-incorporated junior exploration and production company focused on the development of thermal in-situ oil sands and heavy oil assets in Western Canada. The company operated two core producing assets: the STP-McKay Thermal Project, a 12,000 bbl/d commercial SAGD (Steam-Assisted Gravity Drainage) bitumen project located 45 km northwest of Fort McMurray, Alberta, and the STP-Senlac heavy oil property in Saskatchewan producing 11-12 degree API crude. The company employed horizontal wells and steam injection rather than mining, with on-site cogeneration providing electrical power, a 95% water recycle rate, and a zero liquid discharge water system.

The company's business model centered on the production and sale of bitumen and heavy oil to refineries and energy markets, with a distinctive rail market strategy commencing January 2013 that transported bitumen approximately 4,500 km to U.S. Gulf Coast refiners via terminals at Lynton, AB and Natchez, MS, bypassing pipeline constraints and reducing diluent requirements. STP-Senlac generated strong unit economics with approximately $12.00/bbl operating costs, ~22% diluent requirements, ~16% royalties, and a Steam-Oil Ratio of 2.9. Beyond the two core assets, the company held exploration prospects at Hangingstone, Anzac, Ells, and Leismer/Kirby, representing a pipeline of staged development opportunities.

The company was founded in March 2006, graduated to the TSX in 2010 under ticker STP, and raised over C$258 million in equity and debt between 2009 and 2014 to fund acquisitions and project development. Following the 2014 oil price collapse, the company filed for creditor protection under the CCAA in January 2015 and was placed in receivership on June 1, 2015, with PricewaterhouseCoopers Inc. appointed as Receiver and Manager, and STP-McKay operations subsequently suspended.

Name

Southern Pacific Resource Corp

Legal name

Southern Pacific Resource Corp.

Website

https://shpacific.com

Company type

Private

Founded year

2006

Operating status

Closed

Headcount range

51–100 employees

Short description

Southern Pacific Resource Corp. was a Calgary-based junior oil and gas producer focused on thermal in-situ SAGD bitumen production at STP-McKay in Alberta and heavy oil at STP-Senlac in Saskatchewan, selling into Canadian and U.S. Gulf Coast refining markets. The company entered receivership in June 2015.

Ownership category

akta.pro rank

Headquarters

HQ city

Calgary

HQ country

Canada

HQ region

North America

Offices3 records

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Operations, Supply Chain, Personnel, Infrastructure, Others

Revenue model

1. Bitumen Production and Sales: Southern Pacific generates revenue through production and sale of bitumen extracted via SAGD at STP-McKay in Alberta. Production averaged 3,372 bbl/d for Q3 2014 (bitumen from STP-McKay Phase 1 and heavy oil from STP-Senlac combined). Phase 1 designed for 12,000 bbl/d oil capacity.
2. Heavy Oil Production and Sales: Production and sale of 11-12° API heavy oil from STP-Senlac in Saskatchewan. The operation generates consistently strong netbacks due to low total operating costs (~$12.00/bbl), reduced diluent requirements (~22%), and favorable royalties (~16%).

Go-to-market motion1 record

Distribution channels1 record

Marketing channels4 records

Core offering

Southern Pacific Resource Corp is an exploration and production company that produces and sells bitumen extracted via Steam-Assisted Gravity Drainage (SAGD) in-situ thermal recovery at its STP-McKay project in Alberta, and produces 11–12 degree API heavy oil at its STP-Senlac operation in Saskatchewan. The company owns a 100% working interest in its core producing assets and transports bitumen by rail to U.S. Gulf Coast refiners under a long-term supply arrangement. It also holds a portfolio of exploration-stage oil sands prospects at Hangingstone, Anzac, Ells, and Leismer/Kirby.

Product overview

Southern Pacific Resource Corp. is an oil and gas exploration and production company focused on thermal in-situ oil sands and heavy oil development. The company operates two core production assets: the STP-McKay Thermal Project (SAGD-based bitumen production in Alberta with 12,000 bbl/d capacity) and STP-Senlac Heavy Oil Operations (in Saskatchewan). These projects generate cash flow to fund exploration and development of additional oil sands prospects including Hangingstone, Anzac, Ells, and Leismer/Kirby properties. The company uses in-situ recovery methods (primarily SAGD technology) rather than mining, with horizontal wells and steam injection.

Differentiator

Problem solved

Functional benefit

Products and services

• STP-McKay Thermal Project A commercial Steam-Assisted Gravity Drainage (SAGD) oil sands project located 45 km northwest of Fort McMurray, Alberta, producing bitumen via in-situ thermal recovery rather than mining. Phase 1 is designed for 12,000 bbl/d of oil and 37,400 bbl/d of steam and includes a Central Process Facility with on-site cogeneration units, achieving an On Steam Factor above 99% since July 1, 2012. Output is sold to refineries and energy markets, including U.S. Gulf Coast refiners via rail.
• STP-Senlac Heavy Oil Operations A 100% owned and operated heavy oil property in Saskatchewan producing 11–12 degree API oil with strong unit economics, including approximately $12.00/bbl operating costs, an average Steam-Oil Ratio of 2.9, ~22% diluent requirements, and ~16% royalties. Output is sold to refiners and energy markets at market prices.
• Hangingstone Property Oil sands exploration prospect comprising 66 sections at 80% working interest with 28 delineation wells and 203 km of 2D seismic coverage, identified as one of three additional prospect areas for future oil sands development.
• Anzac Property Oil sands exploration prospect covering 56 gross sections (50 net) at 89% working interest with 21 delineation wells and 117 km of 2D seismic coverage, listed as an additional oil sands exploration prospect.
• Ells Property Oil sands exploration prospect covering interests in 50 sections (18 sections at 100% working interest; 32 non-operated sections at 20% working interest), supported by 27 delineation wells and 164 km of 2D seismic, with contingent resources assigned.
• Leismer/Kirby Property Oil sands exploration prospect with 29 coreholes and 2D and 3D seismic covering 51 sections, identified as an additional oil sands exploration prospect area in the company's portfolio.

Quantifiable outcome

• 3,372 bbl/d total production (Q3 2014)
• +3 more outcomes

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Two partnerships are on record, tiered minor and core.

• CIBC Mellon Trust CompanyminorOthersCIBC Mellon Trust Company handles share transfer inquiries and registered/beneficial shareholder services for Southern Pacific Resource Corp. Contact via AnswerLine at 1-800-387-0825 or 416-643-5500.
• GLJ Petroleum ConsultantscoreImplementation/ SI/ Consulting PartnerGLJ Petroleum Consultants of Calgary serves as Southern Pacific's reserves engineers, providing independent evaluation of reserves and resources for the company's oil sands and heavy oil assets.

Scale indicators11 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• MEG Energy Corp: Canadian in-situ oil sands producer using SAGD technology in the Athabasca region with similar bitumen production economics and U.S. Gulf Coast market access via rail. Closest comparable in scale and technology approach to Southern Pacific's McKay operations.
• Laricina Energy Ltd. Junior in-situ oil sands developer using SAGD and solvent-assisted technologies in Alberta. Similar sub-scale thermal bitumen development profile and market access challenges to Southern Pacific.
• OPTI Canada Inc. Former SAGD/bitumen upgrader operator that experienced financial distress and restructuring similar to Southern Pacific. Comparable as a junior oil sands producer that faced capital structure challenges and ultimately was acquired.
• Sunshine Oilsands Ltd. Hong Kong-listed junior oil sands producer with SAGD operations in Alberta. Comparable scale and technology profile, similarly exposed to WCS pricing differentials and U.S. Gulf Coast market dynamics.
• Athabasca Oil Corporation: Light oil and liquids-rich Montney/Deep Basin producer that pivoted from oil sands thermal development. Comparable as an Alberta junior that faced capital structure pressure during the 2014-2015 downturn.
• Connacher Oil and Gas Limited: Junior SAGD bitumen producer operating thermal in-situ projects in Alberta with similar development timeline, scale (tens of thousands of bbl/d), and refinery market access challenges. Direct peer in oil sands SAGD segment.

Broad incumbents

• Cenovus Energy: Major Canadian oil sands producer with large-scale SAGD operations at Christina Lake and Foster Creek. Operates in the same Athabasca region with similar technology but at materially greater scale.
• Canadian Natural Resources: Largest Canadian oil sands producer with extensive SAGD and mining operations. Provides broader market context for oil sands economics and infrastructure access that constrained junior producers like Southern Pacific.
• Suncor Energy: Integrated oil sands major operating both in-situ (Firebag) and mining operations in the Athabasca region. Darren Meidinger (former McKay Area Manager) previously worked on Suncor's Firebag SAGD project.
• Husky Energy (now Cenovus): Major Canadian heavy oil and oil sands producer with SAGD operations including Tucker and Sunrise projects. Comparable heavy oil production technology but at much greater scale than Southern Pacific.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/southern-pacific-resource-corp

Revenue estimate

Valuation estimate

Number of profiles

Profiles12 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Southern Pacific Resource Corp