Southern Pacific Resource Corp STPJF

Energy Oil & Gas E&P

Southern Pacific Resource Corp. is a Canada-based company, which is engaged in the thermal production of heavy oil in Senlac, Saskatchewan on a property known as STP-Senlac, and thermal production of bitumen on a property located in the Athabasca region of Alberta known as STP-McKay, as well as exploration for and development of in-situ oil sands in the Athabasca region of Alberta. Its STP-McKay property consists of oil sands leases totaling approximately 37,760 acres. The Company’s operations also include Anzac, Hangingstone and Ells. The Company’s STP-McKay property is located approximately 45 kilometers northwest Ft. McMurray. The Anzac project covers approximately 117 kilometers of two-dimensional (2D) seismic. The Company owns 80% interest in Hangingstone project. The Ells project covers approximately 164 kilometers of two-dimensional (2D) seismic.

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Southern Pacific Resource Corp

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Post by greener12345on Mar 30, 2010 6:55am

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Post# 16938158

STP

Southern Pacific Resource Corp. | Richard Wyman, MBA, 1.403.508.3886
STP : TSX-V : C$1.02 | 222.8M | Under Review
• Significant reserves increase at McKay; placing rating and target price UNDER
REVIEW
Event
Southern Pacific announced significant reserves increase at its McKay project, effective
March 15, 2010, following the winter drilling program.
Impact
Positive. Gross probable recoverable bitumen reserves have increased by about 150% to
168.1 mmbbls. Additionally, the company’s best estimates (P50) contingent resources have
increased from 85 mmbbls to 116.7 mmbbls. This increase is notable for two reasons: 1) it
sets the stage for additional SAGD projects to follow the McKay project; and 2) it points to
potential for a larger component of debt to finance the McKay project.
Action
We are placing our rating and target price Under Review pending additional disclosure
anticipated at today’s conference call, which will take place at 9 am Mountain Time.
Conference call details
Southern Pacific has scheduled a conference call to discuss the increase in its reserves and
recent corporate developments. The call is set for 9 a.m. Mountain Time (11 a.m. Eastern
Time) on Friday, March 26, 2010. To participate, please call 416-340-8530 or 877-240-
9772. A taped broadcast will be available until April 2, 2010. To access the replay, dial
416-695-5800 or 1-800-408-3053. The pass code is 6106870.

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