any thoughts please, page-2

Please read the announcement below, it does not read well for shareholders. The party could be over and if not, there will be a continuation with further dilution. I don't hold SPP.

Southern Pacific Petroleum edges closer to receivership
2/12/03 By: Adam Dawes

Southern Pacific Petroleum (SPP) said that its giant Stuart oil shale project at Gladstone is on the brink of collapse. Texas oil investor Jeff Sandefer, who pumped in A$34 million in May, has threatened to place the project in receivership.

The group was suspended from trading on the 21 November 2003 as it announced to the market it was actively pursuing near term fundraising options.

Leaked board papers obtained by The Courier-Mail newspaper said that Southern Pacific will run out of cash by Christmas and is desperately trying to raise fresh financing to avert the threat of receivership and the potential loss of up to 200 jobs.

US investor, Mr Jeff Sandefer, who has already put A$34 million into the company has threatened to place the project in receivership. As more money is due from Mr Sandefer, but a crucial pre-condition, such as approval for the oil shale project's environmental impact statement, have not been met.


Notes of a telephone conversation between Southern Pacific chairman Campbell Anderson and Mr Sandefer reportedly said that Sandefer "was ringing to advise that unless by noon next Tuesday, 2 December, we could advise that we had the $10 million (in bridging finance), then he proposed to move to put the company into receivership".

The group said a $6 million blowout associated with a scheduled shutdown of the project has added to the cash crisis.

SPP managing director Jim McFarland told The Courier-Mail last night the company was still exploring financing options and "working diligently" with the state government on its environmental impact statement.

This news comes one day after Norton Belknap resigned as a director of the company.

Southern Pacific Petroleum shares were put in a trading halt on the 21 November 2003 and the stock remains at 24c.