Ytterligare STP godis

SOUTHERN PACIFIC SELECTS BMO CAPITAL MARKETSTO HELP EVALUATE FINANCING OPTIONS FOR STP-McKAY PROJECT
July 16, 2009
Southern Pacific Resource Corp. (“Southern Pacific” or the “Corporation”) (STP –TSX-V) is pleased to announce the appointment of BMO Capital Markets as itsfinancial advisor to help evaluate the options to finance construction of the Corporation’sfirst SAGD oil sands project.

Southern Pacific recently achieved a significant milestone with the submission of theproject application for its 80% owned 12,000 barrel per day STP-McKay Project onAlberta’s Athabasca fairway. The application was submitted to the Alberta EnergyResources Conservation Board (ERCB) and Alberta Environment on May 29, 2009, andwas based upon the significant body of technical work completed by the Corporationover the past 18 months. Now that this milestone has been achieved, the Corporation isin a position to move forward with a comprehensive evaluation of the financing optionsavailable for the construction of the project.

BMO Capital Markets has been retained to provide strategic advice and to assist in theevaluation of the financing options available to the Corporation. These options includebank financing, capital markets debt financing, equity financing or funding from a jointventure partner.

The STP-McKay Project is expected to require gross capitalexpenditures of approximately C$400 million. Costs have recently been declining inresponse to reduced industry demand for services and the Corporation will update itscapital cost estimates as necessary.Byron Lutes, the Corporation’s President and CEO, said Southern Pacific is pleased toformalize the excellent relationship developed with BMO Capital Markets over the pastyear. “Throughout the market downturn, we continued to advance our STP-McKay Project and we’re now ready to move into the project execution phase,” Mr. Lutes said. “SouthernPacific and BMO Capital Markets will evaluate all of the options available to us, and we will move forward with funding solutions that provide the best value for our shareholders.

We have a great project at STP-McKay and are excited about moving intothe next phase of the company’s development.”Southern Pacific is a full cycle oil and gas exploration and production company focusedon the development of the Corporation’s vast in-situ oil sands resource base in Alberta’sAthabasca oil sands region.

For further information, please contact:Byron Lutes, President & CEO403-269-1529mailto:CEO403-269-1529blutes@shpacific.com
Dave Antony, Chairman403-269-5219dantony@shpacific.com