Southern Pacific announces $20,000,000 private placement



    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/

    CALGARY, June 8 /CNW/ - Southern Pacific Resource Corp. ("Southern
Pacific" or the "Corporation") (STP - TSX-V) is pleased to announced that it
has engaged a syndicate of agents led by Canaccord Capital Corporation,
including Blackmont Capital Inc. and Jones, Gable & Company Limited, to
complete a brokered private placement on a best efforts basis for up to
$20,000,000 (the "Offering"). The Offering will comprise of up to
6,896,552 units of the Corporation ("Units") at a price of $2.90 per Unit.
Each Unit will consist of one common share of Southern Pacific ("Common
Share") and one half of one Common Share purchase warrant ("Warrant"). Each
whole Warrant will entitle the holder thereof to purchase one Common Share at
any time for a period of 12 months following the closing date at a price of
$4.00 per Common Share. A cash commission of 6% will be paid on the gross
proceeds of the Offering. The Offering is expected to close on or about June
22, 2007.
    The proceeds of the Offering are expected to be partially used to
complete the acquisition announced on June 1, 2007 (the "Acquisition") to
acquire an 80% interest in 76 sections (38,912 acres net to Southern Pacific)
of land in the Fort McMurray area of the Athabasca Oilsands fairway. The
consideration to be paid pursuant to the Acquisition is an aggregate of
$16,000,000 and includes a cash payment of $9,600,000 and the issuance of
approximately 2,206,897 Southern Pacific Common Shares with a deemed value of
$6,400,000.
    The Corporation has also approved the grant of 1,475,000 stock options to
directors and officers of the Corporation. The options will be granted at an
exercise price of $3.15 per Common Share and expire on June 8, 2012. The
options will vest over the next twelve months. The Corporation has determined
that exemptions from the various requirements of TSX Venture Exchange Policy
5.9 are available for the granting of the options.
    The Offering and Acquisition are subject to TSX Venture Exchange
acceptance. There is no assurance the Offering or the Acquisition will be
completed.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    Safe Harbour

    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.
    Not for dissemination in the United States of America. This news release
shall not constitute an offer to sell or the solicitation of any offer to buy
securities of the Corporation in any jurisdiction, including the United
States. The securities of the Corporation have not been and will not be
registered under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act") or any state securities laws and have not been and will
not be offered or sold in the United States or to any U.S. person except in
certain transactions exempt from the registration requirements of the U.S.
Securities Act and applicable state securities laws.





For further information:

For further information: Dave Antony, (403) 531-1710 (Calgary, Alberta),
dantony@shpacific.com Or visit our website at www.shpacific.com

Organization Profile

SOUTHERN PACIFIC RESOURCE CORP.

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