Southern Pacific Resource Corp.

Southern Pacific Resource Corp.

April 05, 2011 23:24 ET

Southern Pacific Expects Minimal Impact From Alberta's Draft Lower Athabasca Regional Plan

CALGARY, ALBERTA--(Marketwire - April 5, 2011) -

Southern Pacific Resource Corp. ("Southern Pacific" or the "Company") (TSX:STP) is pleased to report that the Alberta government's draft Lower Athabasca Regional Plan (LARP) announced April 5, 2011 would have a minimal impact on Southern Pacific's development plans. To be clear, neither of the Company's existing Alberta oil sands projects, namely its approved project at McKay and its pilot project at Red Earth, would be affected by this plan.

The government's proposed conservation areaswould potentially affect only one of Southern Pacific's six land blocks in Alberta. On the affected land block, which Southern Pacific calls Anzac, the Company estimates approximately5,800 acres, or 12%, of Southern Pacific's Anzac block would be rendered potentially inaccessible for in-situ development using today's existing technology.

Southern Pacific has been in consultation with the Alberta government through the LARP process since it was first proposed in August 2010. Through this period, the Company has shared with the government what it believes are the areas within the Anzac block with the greatest prospectivity for in-situ bitumen recovery through extraction methods such as steam-assisted gravity drainage.

"The government has taken our input into consideration under the proposed conservation area around our Anzac property," said Byron Lutes, President & CEO, Southern Pacific. "The draft plan would allow for maximum resource recovery while protecting sensitive areas from surface disturbances."

Southern Pacific has identified significant bitumen potential on its Anzac block through the work it has completed to date, including the drilling of 14 coreholes and a 2D seismic program. All of the lands at Anzac that have been assigned contingent bitumen resources through this work are not included within any portion of the proposed conservation area. The Company is optimistic it will be able to continue to responsibly develop this asset within the framework of the draft regional plan.

The proposed conservation areas are not final. Southern Pacific expects to be an active participant through the continued consultation process. The LARP, if implemented as proposed, precludes development on some parts of existing leasesas discussed above. Adequate compensation for these lost leases remains a concern that the Company will continue to discuss with the government through the remainder of this process.

Further information on the Government of Alberta's LARP process can be found here:

About Southern Pacific

Southern Pacific Resource Corp. is engaged in the exploration, development and production of in-situ thermal heavy oil and bitumen production in the Athabasca oil sands of Alberta and in Senlac, Saskatchewan. Southern Pacific's Common Shares trade on the TSX under the symbol "STP."

Forward-Looking Information

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, the potential impact of the Government of Alberta's draft Lower Athabasca Regional Plan and, subject to regulatory approval and commercial factors, the approval, construction or expansion 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 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, 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.

Contact Information