Southern Pacific Resource Corp. is pleased to announce that the second stage of the winter drilling program which began on February 22, 2007 has been successfully completed. The drilling, coring and logging of all wells in the 12 well program of the second phase of drilling, was completed on March 22, 2007. During the entire winter drilling season, which began in January, the Corporation was able to drill 17 wells in total. The wells covered only 8 sections out of the total of 25 sections held by the Corporation. The results from wells have provided the Corporation with encouraging results from its 80% interest in 25 contiguous sections (16,000 acres) in the Leismer South Oil Sands Assets Area.
The logs on the seventeen wells drilled have shown encouraging results with gross bitumen zones ranging from 15 to 39 meters. The logs from these wells, along with the detailed core analysis which is currently being completed, will be the basis for the updated reserve report which is being prepared by Degolyer and MacNaughton, the independent reservoir engineering firm chosen by the Corporation. In addition to the well information, the Corporation has supplied the seismic interpretations from the 52 km 2D survey which was completed in February 2007. It is anticipated that this evaluation will be completed by June. At that time the Corporation will be in a position to outline its plans for the future.
Statements in this press release may contain forward-looking information including expectations of future operations, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income and oil taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the oil and gas industry, commodity prices and exchange rate changes. 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. The reader is cautioned not to place undue reliance on this forward-looking information.
Southern Pacific Resource Corp.
Source: Southern Pacific Resource Corp.