Southern Pacific Resource Corp.

Southern Pacific Resource Corp.

September 10, 2012 16:33 ET

Southern Pacific Resource Corp. Announces C$75 Million Bought Deal Equity Offering

CALGARY, ALBERTA--(Marketwire - Sept. 10, 2012) -


Southern Pacific Resource Corp. ("Southern Pacific" or the "Corporation") (TSX:STP) is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by BMO Capital Markets (joint bookrunner), RBC Capital Markets (joint bookrunner), FirstEnergy Capital Corp., and TD Securities Inc., and including Raymond James Ltd., AltaCorp Capital Inc. and Canaccord Genuity Corp. (the "Underwriters") to sell, on a "bought deal" basis, 51,725,000 common shares of the Corporation at a price of $1.45 per common share for gross proceeds of approximately $75 million. In addition, the Corporation has granted the Underwriters an over-allotment option to acquire up to an additional 7,758,750 common shares at a price of $1.45 per common share. This option is exercisable, in whole or in part, by the Underwriters, in their sole discretion, at any time up to 30 days after the closing date. If the over-allotment option is exercised in full, additional gross proceeds will be approximately $11 million for total gross proceeds of approximately $86 million. The offering will be made in the provinces of Canada (other than Quebec) by way of short form prospectus. The offering is scheduled to close on or about September 28, 2012.

Southern Pacific expects to use the net proceeds of this offering to fund the Corporation's ongoing business development activities and to increase working capital flexibility.

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 trades on the TSX under the symbol "STP."


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, 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, 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.

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