CALGARY, ALBERTA–(Marketwired – Oct. 8, 2013) – Southern Pacific Resource Corp. (TSX:STP) (“Southern Pacific” or the “Company”) today provided an operational update for the month of September 2013 with respect to the Company’s STP-McKay and STP-Senlac thermal projects.
Total Corporate Production
Total Company production, which includes bitumen production from STP-McKay and heavy oil from STP-Senlac, averaged 5,042 bbl/d (“barrels of oil per day”) for the month of September 2013, representing a 5% increase from the prior month.
STP-McKay Thermal Project
Southern Pacific continues to focus efforts on the ramp-up at STP-McKay. Average bitumen production was 2,305 bbl/d for the month of September, a 22% increase over the previous month. Operations during the month of September were steady, with no major changes to the status of the well pairs. Southern Pacific is continuing to advance and implement its operations strategy at STP-McKay. The Company is pleased with the improving performance of the well pairs in the field that are now on steady steam-assisted gravity drainage (SAGD), and has plans in place to accelerate and improve steam chamber conformance along certain pairs by applying stimulation techniques including high pressure steam stimulation (HPSS).
STP-Senlac Thermal Project
Heavy oil production at STP-Senlac averaged 2,737 bbl/d for the month of August. Last month a well pair on Phase K was taken off production for a down hole repair. That repair has now been completed and the well pair is currently on production.
Fiscal Q1 2014
Southern Pacific plans to release its first quarter fiscal 2014 financial and operating results, in addition to its October operational update, on or about November 6, 2013.
“Our long-term commitment of value creation remains strong,” said Byron Lutes, Southern Pacific’s President & CEO. “We’re encouraged by the steady growth in production at STP-McKay.”
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 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 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 oil and gas properties and of oil sands properties, 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 reader is cautioned not to place undue reliance on this forward-looking information.