Southern Pacific has an average 89% working interest in 366 sections (321 net) of Alberta's oil sands. On October 18, 2010, the Company received formal approval from the Government of Alberta and the Energy Resources Conservation Board for a 12,000 barrel per day (bbl/d) commercial steam-assisted gravity drainage (SAGD) oil sands project on its McKay block. Once it's fully operational, the STP-McKay Project is expected to produce between 10,000 and 12,000 bbl/d of bitumen for at least 30 years.

Southern Pacific is positioned for growth with three additional prospect areas: Hangingstone, Anzac, and Ells. The Company's strategy is to bring its STP-McKay Project to the point of production as efficiently as possible. The cash flow from Senlac and the STP-McKay Project will then be used to fund growth into Southern Pacific's other oil sands leases.

• Alberta: 231 sections (186 net) of oil sands leases with 89% average working interest
• Saskatchewan: 100% working interest heavy oil