Southern Pacific Resource Corp.

Southern Pacific Resource Corp.

December 15, 2009 09:00 ET

Southern Pacific Provides Operational Update on Its McKay and Senlac Thermal Projects

CALGARY, ALBERTA--(Marketwire - Dec. 15, 2009) - Southern Pacific Resource Corp. ("Southern Pacific" or the "Company") (TSX VENTURE:STP) is pleased to provide an update on activity in its core operating areas, namely its STP-McKay and STP-Senlac thermal projects, as well as its upcoming winter corehole program.

STP-McKay Thermal Project

On December 7, 2009, the Energy Resources Conservation Board (ERCB) issued a document entitled Supplemental Information Request ("SIR") to Southern Pacific pertaining to its STP-McKay Thermal Project application submitted on May 29, 2009. This is the standard process by which the ERCB requests additional information on all oil sands project applications. The SIR was issued six months from the date the application was submitted, which is consistent with the anticipated timeline.

Southern Pacific is of the opinion that no significant issues with the application have been identified by the SIR. Southern Pacific had previously received Alberta Environment's SIR related to the application. In the Company's opinion, these questions similarly did not contain any significant concerns. Southern Pacific is in the process of responding to the SIRs.

Because no material questions have been raised in the ERCB and Alberta Environment SIRs, the Company is moving aggressively towards completing a Front End Engineering and Design (FEED) study on the STP-McKay Thermal Project. The FEED study is being prepared by a team of 20 engineering and design professionals. When completed in the first quarter of 2010, the FEED study will fulfil all the engineering required to commence the ordering of equipment and ultimately the construction of the project. Construction is scheduled to begin in the fall of 2010.

Southern Pacific is pleased to report that the STP-McKay Thermal Project development timeline is proceeding as expected.

STP-Senlac Thermal Project

The Senlac Thermal Project, acquired on November 4, 2009, has now been fully integrated into Southern Pacific, resulting in one month's production and cash flow. The property averaged 5,081 barrels per day in November despite having approximately three days of downtime due to an anomalous power disruption at a nearby SaskPower substation. Cash flow is estimated to exceed $6.0 million for November.

Southern Pacific believes the benefits of operating its own steam assisted gravity drainage (SAGD) production at Senlac have already become apparent. Several key engineers from the STP-McKay FEED study team have spent time at the Senlac Thermal Project, discussing operational items with the experienced staff on site. The collaboration of people and comparisons between the Senlac and McKay designs will undoubtedly create an even better product when STP-McKay begins construction next year.

2009-10 Winter Exploration Program

Southern Pacific and its 20% working interest partner, Bounty Developments Ltd., have commenced this winter's exploration program with ice road construction already underway. The program will be carried out on two of Southern Pacific's six oil sands leases, namely Hangingstone and McKay South. Each program will consist of approximately 20 coreholes. The objective of the program is to identify at least one new project area from which to begin making plans for another thermal project. Both of these programs have been designed based on strong potential shown from the Company's existing seismic and corehole data. The program is expected to cost about $8.0 million (net) and will be funded entirely from cash flow.

New Staff

Southern Pacific is also pleased to announce that over the past month the Company has hired four new managers. Wayne Beatty (Manager, Reservoir Engineering), Adrian Dodds (Manager, Operations), Chad Harris (Manager, Geosciences) and Troy Bergfeldt (Controller) have joined the Southern Pacific team. The Company looks forward to their contributions as it continues to grow.

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, 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, unless 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.

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