Southern Pacific Resource Corp.
TSX VENTURE : STP

Southern Pacific Resource Corp.

January 25, 2008 09:06 ET

Southern Pacific Completes Initial McKay River Core Holes

CALGARY, ALBERTA--(Marketwire - Jan. 25, 2008) - Southern Pacific Resource Corp. ("Southern Pacific" or the "Corporation") (TSX VENTURE:STP) is pleased to announce that they have completed the initial core holes at their McKay River property. Southern Pacific owns an 80% interest in 62 sections (31,744 net acres) at McKay River. The drilling began in early January and will continue at McKay River for another three weeks, until such time as all firm locations and contingent locations are completed. The drilling, coring and logging of the initial 6 core holes have shown successful results in 5 of the core holes and the results confirm the indications from the previously drilled core hole on the lands. The first 6 core holes were drilled on a contiguous land block of 6 square miles. With these results Southern Pacific has expanded the drilling program this winter within this block to include additional contingent core holes in order to further delineate the potential SAGD project area.

Southern Pacific feels that they now have two potential SAGD projects; the first potential project was discovered through last year's drilling at the Corporation's Leismer project and the second is the newly discovered project at McKay River.

The logs on 5 of 6 core holes drilled by Southern Pacific, along with the core hole previously drilled on the block have shown encouraging results within the McMurray sands including gross bitumen zones ranging from 26 to 32 meters and net bitumen zones ranging from 17 to 27 metres. The zone porosity ranges from 30% to 35%. In addition, the core holes did not show any evidence of gas or water thief zones that could technically impair SAGD viability. The one remaining core hole was a westernmost extension test, which still encountered 28 meters of gross bitumen in the McMurray sand, however, the sand was interrupted by a 4 meter and a 5 meter interval of sandy mudstone that may impede SAGD viability. The seismic, logs, core and bitumen from this block are still being analyzed and interpreted as more data is collected, and will be the basis for an updated resource report which will be prepared by McDaniel and Associates, the independent reservoir engineering firm chosen by the Corporation. Interpreted seismic data from the 212 km 2D survey at McKay River, which was completed in the fall of 2007, was the basis for in the selection of the locations for the core holes that have been drilled.

In addition, Southern Pacific has coring rigs operating on their Long Lake prospect and anticipates that operations at their other projects at Hangingstone West, Leismer and Kirby will begin shortly.

About Southern Pacific

The Corporation currently holds an 80% working interest in 219 sections in five core areas. The previous evaluation work on the areas has allowed the Corporation to record probable reserves of approximately 92.6 million barrels and possible reserves of approximately 65.8 million barrels and best case contingent resources of 689 million recoverable barrels.

Safe Harbour

Statements in this press release may contain forward-looking information including expectations of future 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. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the oil and gas industry, commodity prices and exchange rate changes. 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. The reader is cautioned not to place undue reliance on this forward-looking information.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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