CALGARY, ALBERTA, Sep 21, 2011 (MARKETWIRE via COMTEX) -- Southern Pacific Resource Corp. ("Southern Pacific" or the "Company") /quotes/zigman/36124CA:STP-5.26%is pleased to announce its financial and operational results for the year ended June 30, 2011.
2011 FISCAL HIGHLIGHTS:
-- Averaged overall production of 4,267 bbl/d, an increase of 44% over average production of 2,956 bbl/d in fiscal 2010; -- Increased funds from operations 45% to $51.9 million compared to $35.8 million in the prior year; -- Received Order In Council approval from the Government of Alberta for STP-McKay Phase 1 on October 15, 2010, and subsequently received the Energy Resources Conservation Board ("ERCB") scheme approval on October 25, 2010; -- Increased proved ("1P") reserves by 1,670% to 120.8 million barrels over the prior year due to regulatory approval of the STP-McKay Thermal Project ("STP-McKay") and 2011 winter core hole program; -- Completed the final financing arrangements for construction of STP-McKay Phase 1, including $172.5 million of unsecured convertible debentures, a US$275.0 million second lien term loan facility and a $30.0 million first lien revolving facility, resulting in full funding for STP-McKay Phase 1; -- Commenced construction of STP-McKay Phase 1. The Company continues to forecast project completion for calendar first quarter 2012, first steam for calendar second quarter 2012 and first oil in calendar third quarter 2012; -- Closed the acquisition of North Peace Energy on November 23, 2010. Acquired assets include 135 sections of land in the Peace River oil sands area at a 100% working interest, a 1,000 bbl/day cyclic steam stimulation (CSS) pilot project at Red Earth, and potential for a 10,000 bbl/day thermal project; and -- Announced and began preparing the application for STP McKay Phase 2, which is expected to add 24,000 bbl/d of bitumen capacity. ($ thousands, except per share and per boe amounts) 2011 2010 ---------------------------------------------------------------------------- Petroleum and natural gas revenue $ 93,727 $ 62,043 Funds from operations (1) $ 51,872 $ 35,773 -Per share basic and fully diluted $ 0.16 $ 0.18 Net income $ 14,280 $ 8,197 -Per share basic and fully diluted $ 0.04 $ 0.04 Total assets $ 871,360 $ 349,197 Working capital $ 259,519 $ 59,929 Capital expenditures $ 263,764 $ 45,842 Total long-term debt $ 374,186 - Average product prices ($ per boe) $ 60.17 $ 57.50 Operating netback ($ per boe) (2) $ 40.29 $ 38.68 Weighted average common shares outstanding -basic 331,902 200,385 -diluted 338,834 202,751 Production Heavy oil (bbl/day) 4,205 2,825 Oil and NGLs (bbl/day) 25 30 Natural gas (mcf/day) 221 607 Total (boe/day) 4,267 2,956