Southern Pacific Installs Third ICD Configuration at STP-McKay and Provides Update on Pad 102 Downspacing

Southern Pacific Installs Third ICD Configuration at STP-McKay and Provides 
Update on Pad 102 Downspacing 
NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: Southern Pacific Resource Corp. 
TSX SYMBOL:  STP 
JUNE 17, 2014 
Southern Pacific Installs Third ICD Configuration at STP-McKay and Provides
Update on Pad 102 Downspacing 
CALGARY, ALBERTA--(Marketwired - June 17, 2014) - Southern Pacific Resource
Corp. ("Southern Pacific" or the "Company") (TSX:STP) has
completed another Inflow Control Device ("ICD") installation on one
of its SAGD well pairs at the STP-McKay Thermal Project. The ICDs were
installed on the 2P5 well pair, making this the third well pair of the 12
existing well pairs equipped with these devices. The 2P5 well pair was shut-in
for 14 days to cool off and complete the workover; it was placed back on
production on June 10. The ICD system is intended to improve wellbore
conformance in a two part process. First, the horizontal producer length is
segmented with isolation packers and second, the ICD devices are installed into
the segments which are designed to restrict the inflow of steam from short
circuits, thus allowing other sections of the wellbore to produce without
having to rate restrict the entire well pair. Southern Pacific has plans to
install additional ICD configurations into more of the well pairs at McKay. The
exact timing around future ICD installation is subject to further clarity on
the Company's ongoing strategic alternatives process announced in December
2013, but it is expected that further installations will be completed over the
next three months. 
Southern Pacific also has continued to advance its regulatory application to
downspace the existing McKay well pads with additional SAGD well pairs. As
mentioned in the Company's December 11, 2013 press release, the Company
believes additional well pairs will be required in order to fully utilize the
available steam capacity at the STP-McKay Thermal Project. Southern Pacific
believes the most prudent strategy is to add them between the existing well
pairs, which were originally spaced 100 m apart, allowing ample room for
additional well pairs to be drilled. Southern Pacific filed its application
with the Alberta Energy Regulator ("AER") to downspace Pads 101 and
102 on February 18, 2014. After review of the application, the AER requested
response to four supplementary information requests ("SIRs"). On June
13, Southern Pacific filed its responses to these SIRs. It is expected that
final approval of the application will be obtained within the next few months.
Southern Pacific plans to downspace Pad 102 first and only downspace Pad 101 if
required, at a later date. The total Pad 102 downspace project cost is
estimated at $51 million. This project's timing is also being affected by
the Company's ongoing strategic alternatives process. A revised timing
estimate of first steam to the downspaced wells on Pad 102 would be mid 2015 or
later, and this is dependent upon the Company obtaining sufficient liquidity to
proceed. 
Southern Pacific's review of strategic and financial alternatives is
ongoing. The Company does not intend to disclose developments with respect to
the strategic review process until the Board of Directors has approved a
specific transaction or otherwise determines that disclosure is necessary or
appropriate. The Company cautions that there are no assurances or guarantees
that the process will result in a transaction or, if a transaction is
undertaken, the terms or timing of such a transaction. 
About Southern Pacific 
Southern Pacific Resource Corp. is engaged in the exploration, development and
production of in-situ oil sands in Alberta's Athabasca region, and the
thermal production of heavy oil in Senlac, Saskatchewan. Southern Pacific
trades on the TSX under the symbol "STP."  
Advisory 
This news release contains certain "forward-looking information"
within the meaning of such statements under applicable securities law including
estimates as to: additional ICD installation timing, future production,
operations, operating costs, commodity prices, administrative costs, commodity
price risk management activity, acquisitions and dispositions, capital
spending, access to credit facilities and lending costs, 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,
workovers and any conformance acceleration techniques such as the use of ICDs,
and, subject to regulatory approval and commercial factors, the commencement or
approval of any SAGD project, the potential results of the strategic
alternative review process and enhancement of shareholder value, disclosure
intentions with respect to the strategic alternative review process, and
general economic outlook. 
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 oil and gas properties and of
oil sands properties, strategic alternatives, conformance acceleration
techniques, delays in ramp-up operations, the uncertainties involved in
interpreting drilling results and other geological data, fluctuating oil prices
and discounts, 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, ramp-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 impact of any one risk, uncertainty or factor on a particular
forward-looking statement is not determinable with certainty as the factors are
interdependent, and the Board's and management's future course of
action would depend on its assessment of all information at the time. 
The reader is cautioned not to place undue reliance on this forward-looking
information.  
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FOR FURTHER INFORMATION PLEASE CONTACT: 
Southern Pacific Resource Corp.
Greg Foofat
Investor Relations
403-930-5621
gfoofat@shpacific.com
or
Southern Pacific Resource Corp.
Byron Lutes
President & CEO
403-269-1529
blutes@shpacific.com
or
Southern Pacific Resource Corp.
Howard Bolinger
CFO
403-269-2640
hbolinger@shpacific.com 
INDUSTRY:  Energy and Utilities - Oil and Gas  
SUBJECT:  OEX 
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-0- Jun/17/2014 13:00 GMT
 
 
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