CALGARY, ALBERTA, Nov 3, 2009 (Marketwire via COMTEX News Network) --

Southern Pacific Resource Corp. ("Southern Pacific" or the "Corporation") (TSX VENTURE:STP) is pleased to announce that it has closed the acquisition of Senlac Oil Ltd. for a net purchase price of $89 million. The acquisition includes facilities, personnel and assets that have produced an average of 5,100 barrels of heavy oil per day since the effective date on June 1, 2009. Southern Pacific announced the acquisition of Senlac Oil Ltd. on October 9, 2009 (the "Senlac Acquisition").

In connection with the Senlac Acquisition, the Corporation is pleased to announce the release from escrow of the proceeds of its previously announced private placement of subscription receipts. As of November 3, 2009, gross proceeds of $52 million have been released from escrow. This is based on the proceeds of the 104 million subscription receipts issued at $0.50 per subscription receipt. Common shares of the Corporation have been issued to the holders of the subscription receipts on the basis of one underlying common share for each subscription receipt through the facilities of CDS. Book-Entry Only System customer confirmations will be entered on November 3, 2009. As a result of the foregoing, the subscription receipts are now cancelled, null and void. The Underlying Common Shares are subject to a statutory resale restriction until February 24, 2010. The offering was a bought-deal financing with a syndicate of underwriters led by BMO Capital Markets and including Canaccord Capital Corporation, Raymond James Ltd. and Byron Capital Markets. The net proceeds of the offering were utilized to satisfy a portion of the funding for the Senlac Acquisition. With the closing of the Senlac Acquisition and the conversion of the subscription receipts the Corporation has 225.6 million shares outstanding.

The Corporation has concluded a $45 million demand revolving credit facility with BMO Capital Markets. The proceeds of the credit facility were used to pay the remaining portion of the purchase price for the Senlac Acquisition and the remainder will be available for operating purposes. As security for the credit facility, the Corporation and its subsidiaries, including Senlac Oil Ltd., have granted security over all of their respective properties in favour of the bank. The $45 million credit facility has now been drawn to $37 million, leaving over $7 million of the facility undrawn.

Acquisition Update

With the completion of the Senlac Acquisition, Southern Pacific has been materially transformed with the addition of significant cash flow, immediate steam-assisted gravity drainage (SAGD) production, experience and technical data. Southern Pacific has successfully hired the full complement of field staff that operate the Senlac Thermal Project. The new Southern Pacific staff will ensure the continued successful operations of the Senlac Thermal Project, and also retain a wealth of transferable knowledge and experience that will be invaluable as Southern Pacific prepares to construct its first SAGD project in the Athabasca oil sands at STP-McKay. Southern Pacific welcomes the 20 staff members who have joined its team.

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