CALGARY, ALBERTA–(Marketwired – Nov. 17, 2014) – Southern Pacific Resource Corp. (“Southern Pacific” or the “Company”) (TSX:STP) today announced the signing of an agreement to dispose of its entire interest in its Red Earth assets. The consideration for this sale is $19.5 million cash and the transaction is expected to close on or about November 25, 2014. The Red Earth assets were non-core to the Company, consisting of 135 sections of land and a pilot project thermal facility. Southern Pacific did not carry assigned contingent resources or reserves for this property. The Company continues to explore divestment opportunities of its other non-core assets.
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.”
This news release contains certain “forward-looking information” within the meaning of such statements under applicable securities law including estimates as to: the timing and completion closing of the sale of the Red Earth assets and other divestitures, if any.
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 any commercial transactions. 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.
Southern Pacific Resource Corp.
President & CEO
email@example.comSouthern Pacific Resource Corp.