CALGARY, ALBERTA--(Marketwire - Sept. 28, 2012) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Southern Pacific Resource Corp. ("Southern Pacific" or the "Corporation") (TSX:STP) is pleased to announce that it has closed its previously announced bought deal financing with a syndicate of underwriters co-led by BMO Capital Markets (joint bookrunner), RBC Capital Markets (joint bookrunner), FirstEnergy Capital Corp. and TD Securities Inc., and including Raymond James Ltd., AltaCorp Capital Inc. and Canaccord Genuity Corp. (the "Underwriters"). Pursuant to its short form prospectus dated September 21, 2012, the Corporation issued 55,625,000 common shares ("Common Shares") at a price of $1.45 per Common Share for gross proceeds of $80.65 million. This amount includes 3,900,000 Common Shares exercised under the previously announced over-allotment option.
The over-allotment option continues to allow the Underwriters to acquire up to an additional 3,858,750 Common Shares at a price of $1.45 per Common Share. The remainder of this option is exercisable, in whole or in part, by the Underwriters, in their sole discretion, at any time up to 30 days after the closing date.
Southern Pacific expects to use the net proceeds of this offering for the long lead equipment orders and engineering on the STP-McKay Phase 1 Expansion, to improve its working capital position, for working capital required to manage the recently announced rail marketing arrangement and for a discretionary corehole exploration program over the winter of 2012/13.
The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirement. This media release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Southern Pacific
Southern Pacific is engaged in the exploration, development and production of in-situ thermal heavy oil and bitumen production in the Athabasca oil sands of Alberta and in Senlac, Saskatchewan. Southern Pacific trades on the TSX under the symbol "STP".
This news release contains certain "forward-looking information" within the meaning of such statements under applicable securities law including estimates as to: future production, the use of proceeds, 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 anticipated discovery of commercial volumes of bitumen, the timeline for the achievement of anticipated exploration, anticipated results from drilling programs and, subject to regulatory approval and commercial factors, the commencement or approval of any SAGD project.
Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include, but are not limited to the inherent risks involved in the exploration and development of oil and gas properties and of oil sands properties, difficulties or delays in start-up operations, the uncertainties involved in interpreting drilling results and other geological data, fluctuating oil prices, the possibility of unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors including unforeseen delays. As an oil sands enterprise in the development stage, with some conventional production, Southern Pacific faces risks including those associated with exploration, development, start-up, approvals and the continuing ability to access sufficient capital from external sources if required. Actual timelines associated may vary from those anticipated in this news release and such variations may be material. 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. For a description of the risks and uncertainties facing Southern Pacific and its business and affairs, readers should refer to Southern Pacific's most recent Annual Information Form. Southern Pacific undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law.
The reader is cautioned not to place undue reliance on this forward-looking information.