Southern Pacific Resource Corp.
TSX VENTURE : STP

Southern Pacific Resource Corp.

February 21, 2008 09:37 ET

Southern Pacific Continues With Winter Core Hole Program

CALGARY, ALBERTA--(Marketwire - Feb. 21, 2008) - Southern Pacific Resource Corp. ("Southern Pacific" or the "Corporation") (TSX VENTURE:STP) is pleased to announce that its winter core program is continuing with 6 rigs running on 4 of the Corporation's prospect areas. In total, Southern Pacific has completed a total of 48 core holes and is very encouraged by the results to date.

At McKay, Southern Pacific has drilled a total of 23 core holes to date on its 59 section block. The focus of these core holes has been on a six section block where a significant accumulation of bitumen was discovered as previously announced on January 25, 2008. Since the initial discovery, 13 additional core holes have been drilled and another 5 more are planned into the McKay North project area before spring break-up. Southern Pacific credits its technical management staff for having the logistical planning in place prior to the drilling season to enable the Corporation the flexibility to adjust its program to more fully delineate this exciting discovery. Southern Pacific believes its appraisal of the resource on this block of land will be sufficient to proceed with the initial scoping and planning of a commercial SAGD project in the range of 15,000 - 20,000 bbl/d.

Southern Pacific is also very pleased to announce a second discovery in McKay, located 5 miles south of the McKay North project area. McKay South has 3 core holes drilled into the bitumen accumulation to date, and again, utilizing STP's incorporated flexibility on its drilling plans, an additional four core holes will be drilled to further delineate this resource before the end of this year's winter drilling season. Results from the McKay South will be incorporated into the planning process with the project at McKay North.

In total, 17 core holes have been drilled into the two McKay project areas this winter. Of these, 16 have encountered gross bitumen zones between 26 and 30 meters thick, and continuous net bitumen zones between 12 and 27 meters thick. The other core hole came in with less, 8 net meters of pay. 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 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. Interpreted seismic data from the 212 km 2D survey at McKay River, which was completed in the fall of 2007, was the basis for the selection of the locations for the core holes that have been drilled this winter.

The remainder of the exploration and delineation program is proceeding as planned, with a total of 25 core holes drilled to date on the Corporation's Long Lake, Leismer and Hangingstone properties. In particular, at Hangingstone, where he Corporation holds 62 contiguous sections, areas of interest have shown gross bitumen zones between 15 and 30 meters thick and net continuous bitumen zones between 8 and 15 meters thick. Drilling is continuing and the areas of interest will be more fully evaluated as the drilling locations have been adjusted to better delineate any potential project areas.

At Leismer, a 3D seismic program was shot in January 2008, over the area that was successfully drilled last year. This data has now been interpreted and is being utilized to drill the last phase of core holes in Leismer for this winter.

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.

Contact Information