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 
CALGARY, ALBERTA -- (Marketwired) -- 06/17/14 --   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. 
Contacts:
Southern Pacific Resource Corp.
Greg Foofat
Investor Relations
403-930-5621
gfoofat@shpacific.com 
Southern Pacific Resource Corp.
Byron Lutes
President & CEO
403-269-1529
blutes@shpacific.com 
Southern Pacific Resource Corp.
Howard Bolinger
CFO
403-269-2640
hbolinger@shpacific.com
www.shpacific.com
 
 
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