Southern Pacific Resource Corp. has received the results of the contingent resource report from Degolyer & MacNaughton Canada Ltd. (“D&M”) in regard to its recently acquired land positions in two new distinct core areas.
When acquired in June, these areas consisted of 76 sections of 80% owned lands. The acquisition was previously announced on June 1, 2007. Since that announcement the Corporation has acquired an additional 13 sections in these two areas at a recent Crown land sale bringing the total to 89 sections.
The Corporation’s bitumen resource base increase reflects evaluation of the well control and seismic information that was available in the areas. The Corporation has planned an extensive seismic and delineation drilling program for the upcoming fall and winter. The aggressive land acquisition and exploration program of the Corporation will continue through the summer and into the next winter’s exploration program.
The contingent resource report was prepared by D&M, effective June 30, 2007, estimating the extent and value of the contingent reserves on the 89 sections of land. The report was prepared using assumptions and methodology guidelines outlined in the Canadian OilGas Evaluation Handbook and in accordance with National Instrument 51-101. and
Southern Pacific’s 80% interests of the 89 sections of land were assigned contingent and prospective resources at a best estimate basis of 408.2 million barrels. Low estimate contingent resources totaled 322.9 million barrels and high estimate resources totaled 499.7 million barrels.
On July 17, 2007 the Corporation also reported probable and possible recoverable reserves on the lands at Leismer South estimated at 198.0 million barrels, 115.8 million barrels of probable recoverable reserves, with possible recoverable reserves estimated to be 82.2 million barrels.
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