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Southern Pacific Resource Corp. (the “Company”) is a junior oil and gas exploration company with an average 84% working interest in 269 sections of Athabasca oil sands leases in five core areas. The productive zone is the McMurray Formation, consisting primarily of fluvial and estuarine channel sandstones which form the main bitumen deposits.

On May 29, 2009, Southern Pacific filed an application for a 12,000 bbl/d commercial SAGD project on its McKay block. The STP-McKay project will produce between 10,000 and 12,000 bbl/d of bitumen for at least 30 years once approved and constructed. The approval process is expected to take 12 -15 months, during which time Southern Pacific plans to secure project financing, begin detailed engineering and long lead equipment procurement.

Southern Pacific is well positioned for the future with five other prospect areas – namely Hangingstone West, Leismer South, Kirby, Long Lake and MacKenzie. The Company’s strategy is to bring one project, namely STP-McKay, on production and generating cash flow as quickly and efficiently as possible. The cash flow from the first project will then be used to fund growth into its other oil sands leases. Southern Pacific remains well capitalized with 5.0 million (June 20, 2009) in net working capital. Further, over the course of the past winter the Company acquired two small companies, adding 180 boe/d of conventional production from which cash flow will be generated to support the Company until its first SAGD project is brought on stream.

 

CLICK HERE FOR AN ONLINE PDF VERSION
OF SOUTHERN PACIFIC’S STP-MCKAY SAGD APPLICATION.
(Please note that the application is large and readers may experience delays)

 

Southern Pacific is a proud member of the Canadian Association of Petroleum Producers (CAPP).

Have questions about Canada’s oil sands? Click here.

 

A PDF version of Southern Pacific’s June 2009 corporate presentation is available here.

A PDF version of Southern Pacific’s June 2009 two-page profile is available here.