Southern Pacific Resource Corp.

Southern Pacific Resource Corp.

September 06, 2007 09:16 ET

Southern Pacific Closes 81 Section Land Acquisition

CALGARY, ALBERTA--(Marketwire - Sept. 6, 2007) - Southern Pacific Resource Corp. ("Southern Pacific" or the "Corporation") (TSX VENTURE:STP) is pleased to report that it closed the acquisition of an 80% interest in 81 sections (41,472 acres net to Southern Pacific) of land in the Fort McMurray area of the Athabasca Oilsands fairway. This acquisition was previously announced on August 13, 2007. This area is very active with "SAGD" (steam assisted gravity drainage) projects in various stages of development. Southern Pacific acquired the interest in the lands for total consideration of a cash payment of $9,500,000 and the obligation to pay $4,000,000 of the exploration costs of the vendor.

The land was acquired from Bounty Developments Ltd., who holds greater than 10% of the issued and outstanding common shares of the Corporation; in addition Mr. Jon Clark is both an employee of Bounty Developments Ltd. and a director of the Corporation. The acquisition has been conditionally approved by the TSX Venture Exchange but remains subject to final TSX Venture Exchange acceptance.

With this acquisition the Corporation now holds an 80% interest in 217 sections of land in five distinct areas. The current year exploration program, which consists of an extensive 2D seismic program which is to be completed by September 30 to be followed with a drilling program of 115, has begun. The program for the current year is planned to cover all five areas.

The Corporation has plans to continue to diversify its exploration portfolio land base through future Crown land sales as well as through the continuing evaluation of other acquisition opportunities.

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.

Contact Information