Southern Pacific Resource Corp.
TSX VENTURE : STP

Southern Pacific Resource Corp.

September 28, 2009 09:00 ET

Southern Pacific Strengthens Board

CALGARY, ALBERTA--(Marketwire - Sept. 28, 2009) - Southern Pacific Resource Corp. ("Southern Pacific" or the "Corporation")(TSX VENTURE:STP) is pleased to announce that Mr. Sid Dykstra has agreed to join the Board of Directors of the Corporation. Mr Dykstra brings a wealth of experience and knowledge in the oil sands industry and is a welcome addition to the Board.

Mr. Dykstra was the President and Chief Executive Officer of OPTI Canada Inc. from June 2001 until April 2009. During this period OPTI initiated, financed and developed the OPTI/Nexen Long Lake project. From June 2000 to March 2001, Mr. Dykstra was the President of Hunt Oil Company of Canada Inc. Mr. Dykstra, a co-founder of Newport Petroleum Corporation, was the President and Chief Operating Officer of Newport from 1997 to 2000, the Executive Vice President of Newport from 1994 to 1997 and the Vice President, Engineering of Newport from 1992 to 1994. From 1980 to 1992, Mr. Dykstra held various positions with Suncor, Inc., was the Manager of exploitation for Pancontinental Oil Ltd. and was an independent consultant with Maranta Resources Ltd.

Mr. Dykstra is currently a director of Cinch Energy Corp. and is a past Governor of the Canadian Association of Petroleum Producers. Mr. Dykstra is a professional engineer in Alberta and holds numerous professional affiliations and memberships.

He holds a B.Sc. in chemical engineering from the University of Alberta and an M.B.A. from Queen's University.

Mr. Dykstra will be added to the proposed slate of directors at the Corporation's annual general meeting, which will occur in November. Until that time, Mr. Dykstra will assist the Corporation in an advisory role.

Operations Update

The Corporation continues to make significant progress on its key project, STPMcKay. The Corporation has recently completed its detailed project execution plan, which completes the engineering and project management requirements needed to move forward with project financing. As part of the execution plan, the estimated capital costs have been reviewed and updated, which has resulted in an overall net reduction in the capital costs required for the development of the 12,000 barrel/day project. The application for the project has been under review by the Alberta regulatory agencies for almost three months, and to date, no serious concerns or deficiencies have been identified. The Corporation is currently in the process of evaluating the various financing options available for the STP-McKay project and expects to be able to make some decisions on the options later this fall. In addition, Southern Pacific is preparing for an exploration program at its Hangingstone project area, to be conducted this winter. Hangingstone is one of the six blocks of land held by the Corporation on which seismic and initial core hole drilling was completed in 2008. With the STP-McKay project well underway, the Corporation is ready to continue with the work required in order to have a second project application identified and moving towards commerciality.

A more detailed review of the land areas and the future plans of the Corporation are available in a new corporate presentation available on the company website.

Readers' Advisory

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, and 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 the current 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 the inherent risks involved in the exploration and development of conventional oil and gas properties and of oil sands properties, difficulties or delays in start-up operations, the uncertainties involved in interpreting drilling results and other geological data, fluctuating oil prices, the possibility of unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors including unforeseen delays. As an oil sands enterprise in the development stage, with some conventional production Southern Pacific faces risks including those associated with exploration, development, start-up, approvals and the continuing ability to access sufficient capital from external sources if required. Actual timelines associated may vary from those anticipated in this news release and such variations may be material. 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. 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.

Contact Information