Southern Pacific Resource Corp STPJF

News - STP confirms 156-million-barrel est.

[Lucy1]

Breaking News Southern Pacific Completes Initial Delineation Wells and Announces Second Stage of Drilling Program to Proceed 09:00 EST Monday, January 22, 2007 CALGARY, ALBERTA--(CCNMatthews - Jan. 22, 2007) - Southern Pacific Resource Corp. ("Southern Pacific" or the "Corporation") (TSX VENTURE:STP) is pleased to announce that it has completed the drilling, coring and logging of its initial five well program. The results from these five wells confirm the information Southern Pacific utilized in its initial reserves evaluation which was completed in August 2006, which showed probable and possible recoverable reserves on the original 11 sections at Leismer South were estimated to be 156 million barrels, 100.5 million barrels of probable recoverable reserves, with possible recoverable reserves estimated to be 55.2 million barrels. As well, the Corporation wishes to give an update on its complete winter program. The Corporation holds an 80% interest in 25 contiguous sections (16,000 acres) in the Leismer South Oil Sands Assets Area in Townships 75 - 76, which is approximately 120 kms south of Fort McMurray which is directly south of the lands currently being evaluated by North American Oil Sands Corporation. Southern Pacific has drilled and cored five evaluation wells on four sections in the Northwest portion of its lands. The results from these wells are based on the log evaluation only as the cores have been sent to a lab in Calgary for complete analysis. When the core analysis is complete additional information will be made available. Within the five wells drilled the logs showed encouraging results for gross bitumen pay zones with a range of 15-27 meters thick. The log and core analysis information from the initial wells will assist in the geological interpretation of the oil sands on the Corporation's land. These results correspond with the information the Corporation obtained from the previously drilled wells on the leases. The results from the previously drilled wells were utilized by the Corporation and Degolyer and MacNaughton Reservoir Engineers, in their initial reserves evaluation, which was completed and based on the Northern most 11 sections of land held by the Corporation. This initial reserves evaluation is available for review on Sedar and on the Corporation's website. As well, the Corporation has begun its 52 km 2D seismic program which covers the 25 sections of land held by the Corporation. It is anticipated that the interpretation of the seismic data will be completed by early February. As a result of the encouraging results of the initial five well program, management has determined to proceed with the second stage of core drilling, logging and evaluation. Once the data from the wells and from the seismic has been analyzed, the second stage of the winter drilling program will begin. The second stage of core drilling and evaluation is expected to begin in mid February and will continue until spring break up. The Corporation hopes to complete 10 to 15 additional wells during this second phase. The number of wells will depend upon rig availability and weather conditions. Once the second phase of drilling is complete, all information including logs, detailed core analysis, and seismic interpretations will be provided to Degolyer and MacNaughton in order for them to complete a reserves evaluation for the entire 25 sections. It is anticipated that this evaluation will be completed by June. At that time the Corporation will be in a position to outline its plans for the following winter drilling season and other opportunities. Additional information on the Corporation and the project can be found on its website www.shpacific.com. FOR FURTHER INFORMATION PLEASE CONTACT: Southern Pacific Resource Corp. Arun Dey President [phone] Email: [e-mail] or Southern Pacific Resource Corp. Dave Antony CFO [phone] Email: [e-mail] Website: www.shpacific.com The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.