Southern Pacific Resource Corp.
TSX VENTURE : STP

Southern Pacific Resource Corp.

November 27, 2007 09:47 ET

Southern Pacific Announces Closing of $63 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - Nov. 27, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Southern Pacific Resource Corp. (the "Corporation") (TSX VENTURE:STP) is pleased to announce that it has closed its previously announced "bought deal" financing to a syndicate of underwriters led by Canaccord Capital Corporation, Orion Securities Inc. and Genuity Capital Markets (collectively, the "Underwriters"). The Corporation issued and sold 27,323,000 common shares at a price of C$1.83 per share and 4,525,000 common shares on a "flow-through" basis at a price of C$2.21 per flow through share, for gross proceeds of C$60,001,340. The Corporation and the Underwriters are also pleased to announce that an over-allotment option granted to the Underwriters to purchase an additional 1,357,000 flow-through shares at C$2.21 per share was exercised and also closed today.

Total gross proceeds from the financing, including the over-allotment option, are C$63,000,310.

Operational Update

The Corporation is pleased to announce that it has continued to move forward with its extensive winter exploration program. The Corporation has completed the interpretation of 550kms of 2D seismic, which was shot in August/September and has found numerous anomalies which will be the focal points in the high grading of the planned 115 well program. The Corporation has planned to begin the drilling program as soon as the winter freeze is completed. The Corporation has contracted for five coring rigs for this winter's program. It is anticipated that the winter work will begin in the next two to three weeks.

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.

The Corporation plans to use the net proceeds of this offering to fund exploration and development of its Alberta oil sands assets and for general corporate purposes.

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, exchange rate changes, and tax treatment of the flow-through common shares. 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, competition, volatility of oil and gas prices, health and safety risks and the uncertainty of estimates and projections of production, changes in the royalty regime, environmental regulation, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The common shares may be offered or sold in other eligible foreign jurisdictions and to U.S. buyers on a private placement basis pursuant to an applicable exemption from registration requirements in Rule 144-A or Regulation D of the United States Securities Act of 1933, as amended.

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

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