Southern Pacific Resource Corp. report increasing production from its STP-McKay Thermal Project in Alberta, the arrival of the first shipment of diluted bitumen from STP-McKay into Mississippi, and new steam assisted gravity drainage ("SAGD") wells being drilled at the STP-Senlac Thermal Project in Saskatchewan.

STP-McKay Thermal Project

Bitumen production at the STP-McKay Thermal Project, located 45 km northwest of Fort McMurray, continues to ramp up. In December 2012, the estimated average bitumen production rate was 1,200 barrels per day (bbl/d), up 22% from the previous month's average rate. As the Company has previously stated, it is expected to take 12 to 18 months from first oil production, which occurred in mid-October 2012, for total rates to approach the 12,000 bbl/d design capacity.

Tags: Southern Pacific Resource