Southern Pacific Submits STP-McKay Project Application
29 May 2009 - 11:00PM
Marketwired
Southern Pacific Resource Corp. ("Southern Pacific" or the
"Corporation") (TSX VENTURE: STP) is pleased to announce that the
Corporation submitted an application today to the Alberta Energy
Resources Conservation Board (ERCB) and Alberta Environment for the
development of its first 12,000 barrel per day bitumen project,
utilizing proven in-situ steam assisted gravity drainage (SAGD)
technology. Submission of this application is believed to be the
final step before contingent resources on the Corporation's
STP-McKay project can be reclassified as Probable and Possible
reserves. The project application is a complete and encompassing
document that addresses all of the necessary and stringent
requirements that must be met prior to approval of a commercial
project of this size.
The STP-McKay project is located approximately 45 km northwest
of Fort McMurray. Southern Pacific discovered the STP-McKay project
area two winters ago with the drilling of 32 core holes on its
McKay block. The core holes provided an excellent understanding of
the area's bitumen resource and allowed the Corporation to begin
making development plans for the project. Over the past 18 months,
the Corporation has prudently spent capital and collected the
necessary data to complete the requirements for the project
application. These requirements include:
- Drilled 40 assessment wells within the project area, of which
33 have been cored and fully analyzed
- Engineering design basis memorandum for all facilities
- Detailed cap rock study
- Several environmental studies
- Civil engineering planning including a road and facilities
sites
- SAGD well pair design
- Reservoir simulation studies
- Water source studies, including the drilling and testing of
sufficient water supply
- Meaningful and inclusive stakeholder consultation
Southern Pacific is currently having its McKay asset evaluated
by McDaniel and Associates. The Corporation expects the process to
result in the assignment of Probable and Possible reserves from
within the project area when the evaluation is completed by the end
of the Corporation's fiscal year on June 30, 2009.
The STP-McKay project application will be available for viewing
on Southern Pacific's website (www.shpacific.com ) within 10 days.
It will also be available on the ERCB website. Southern Pacific's
corporate presentation, available on the Corporation's website,
also describes the STP-McKay project in detail.
Southern Pacific is also pleased to announce that Glenn Miller
has been promoted to Vice President, Land & Regulatory Affairs.
Mr. Miller has been with Southern Pacific for one year as Manager,
Land and Stakeholder Affairs. He has 15 years of direct energy
related experience and has held management land and stakeholder
affairs positions with MGM Energy, APF Energy and Hunt Oil Company.
In conjunction with the promotion, Mr. Miller was granted 50,000
stock options. The options will be granted at an exercise price of
$0.51 per common share and expire on May 27, 2014. The Corporation
has determined that exemptions from the various requirements of TSX
Venture Exchange Policy 5.9 are available for the granting of the
options.
Readers' Advisory
Barrel of Oil Equivalent: Where amounts are expressed on a
barrel of oil equivalent ("boe") basis, natural gas volumes have
been converted to boe at a ratio of 6,000 cubic feet of natural gas
to one barrel of oil equivalent. This conversion ratio is based
upon an energy equivalent conversion method primarily applicable at
the burner tip and does not represent value equivalence at the
wellhead. Boe figures may be misleading, particularly if used in
isolation.
Safe Harbour
This news release contains certain "forward-looking information"
within the meaning of such statements under applicable securities
law including estimates as to: future production, operations,
operating costs, commodity prices, administrative costs, commodity
price risk management activity, acquisitions and dispositions,
capital spending, access to credit facilities, income and oil
taxes, regulatory changes, and other components of cash flow and
earnings anticipated discovery of commercial volumes of bitumen,
the timeline for the achievement of anticipated exploration,
anticipated results from the current drilling program and, subject
to regulatory approval and commercial factors, the commencement or
approval of any SAGD project.
Forward-looking information is frequently characterized by words
such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate", "may", "will", "potential", "proposed"
and other similar words, or statements that certain events or
conditions "may" or "will" occur. These statements are only
predictions. Forward-looking information is based on the opinions
and estimates of management at the date the statements are made,
and are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
These factors include the inherent risks involved in the
exploration and development of conventional oil and gas properties
and of oil sands properties, difficulties or delays in start-up
operations, the uncertainties involved in interpreting drilling
results and other geological data, fluctuating oil prices, the
possibility of unanticipated costs and expenses, uncertainties
relating to the availability and costs of financing needed in the
future and other factors including unforeseen delays. As an oil
sands enterprise in the development stage, with some conventional
production Southern Pacific faces risks including those associated
with exploration, development, start-up, approvals and the
continuing ability to access sufficient capital from external
sources if required. Actual timelines associated may vary from
those anticipated in this news release and such variations may be
material. Industry related risks could include, but are not limited
to, operational risks in exploration, development and production,
delays or changes in plans, risks associated to the uncertainty of
reserve estimates, health and safety risks and the uncertainty of
estimates and projections of production, costs and expenses. For a
description of the risks and uncertainties facing Southern Pacific
and its business and affairs, readers should refer to Southern
Pacific's most recent Annual Information Form. Southern Pacific
undertakes no obligation to update forward-looking statements if
circumstances or management's estimates or opinions should change,
unless required by law.
The reader is cautioned not to place undue reliance on this
forward-looking information.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Southern Pacific Resource Corp. Byron Lutes President
& CEO (403) 269-1529 Email: blutes@shpacific.com Southern
Pacific Resource Corp. Dave Antony Chairman (403) 269-5219 Email:
dantony@shpacific.com Website: www.shpacific.com
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