Southern Pacific Strengthens Board and Commences Winter Drilling in Two Prospective Project Areas
09 January 2010 - 1:00AM
Marketwired
Southern Pacific Resource Corp. ("Southern Pacific" or the
"Corporation") (TSX VENTURE: STP) is pleased announce that Mr.
Douglas Allen has been appointed to the Corporation's Board of
Directors.
Mr. Allen is an independent businessman who has extensive
experience in both the financial markets and the oil sands
industry. Mr. Allen was the Senior Vice President and Chief
Financial Officer of North American Oilsands Corporation in 2006
and 2007. During this period he was heavily involved in strategic
decisions including the financing and ultimately the sale of the
company to Statoil ASA for $2.2 billion. Prior to his involvement
with North American Oilsands, Mr. Allen held various senior
positions in the investment banking industry, including VP and
Director at TD Securities Inc., Managing Director and Energy
Business Head at Citibank Canada, and Senior Manager, Corporate and
Government Banking for The Royal Bank of Canada.
"We are very excited to have a person with Douglas' experience
involved as we move forward with both the development of our 12,000
barrel per day steam-assisted gravity drainage (SAGD) project at
STP-McKay and our heavy oil production program at Senlac,
Saskatchewan," said Byron Lutes, Southern Pacific's President and
CEO. "His experience in financing alternatives and strategic
decisions will be of immense value."
The Corporation has approved the granting of 250,000 stock
options to Mr. Allen. The options will be granted at an exercise
price of $1.00 per common share and expire on January 7, 2015. 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.
Southern Pacific is also pleased to announce that it has begun
its winter drilling program to identify the Corporation's second
oil sands project area on its 269 sections of oil sands leases. The
evaluation program for the current year includes drilling up to 40
core holes spaced through two of the Corporation's oil sands
leases, namely McKay South and Hangingstone. When the program is
fully operational, it is expected that two coring rigs will be
active. On May 29, 2009, Southern Pacific filed an application for
its first SAGD oil sands project at STP-McKay. The approval process
is expected to take another five to eight months.
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, 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 any current or projected 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, but are not limited to, the inherent risks
involved in the exploration and development of conventional oil and
gas properties, oil sands properties and heavy oil properties,
difficulties or delays in start-up and continuing 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 and heavy oil
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,
except as 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 blutes@shpacific.com Southern Pacific
Resource Corp. Dave Antony Chairman (403) 269-5219
dantony@shpacific.com www.shpacific.com
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