Southern Pacific Resource Corp. Announces C$100 Million Bought Deal Equity Offering; Proceeds Expected to Complete Equity Fundin

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THE UNITED STATES


Southern Pacific Resource Corp. ("Southern Pacific" or the "Corporation") (TSX
VENTURE:STP) is pleased to announce that it has entered into an agreement with a
syndicate of underwriters co-led by BMO Capital Markets and TD Securities Inc.,
and including Raymond James Ltd., RBC Dominion Securities Inc., Canaccord
Financial Ltd., Acumen Capital Finance Partners Limited and Byron Securities
Limited (the "Underwriters") to sell, on a "bought deal" basis, 84,000,000
common shares of the Corporation at a price of $1.20 per common share for gross
proceeds of $100.8 million. In addition, the Corporation has granted the
Underwriters an over-allotment option to acquire up to an additional 12,600,000
common shares at a price of $1.20 per common share. 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. If the over-allotment option is exercised
in full, additional gross proceeds will be $15.12 million for total gross
proceeds of $115.92 million. The offering will be made in the provinces of
Canada (other than Quebec) by way of short form prospectus. The offering is
scheduled to close on or about May 18, 2010.


Southern Pacific expects to use the net proceeds of this offering to complete
the equity funding portion for the Corporation's second steam assisted gravity
drainage (SAGD) project, the STP-McKay Thermal Project. After careful
consideration of advice offered from its banks, the Corporation expects to fund
the remaining portion of the STP-McKay Thermal Project through available debt
financing options, which include project financing debt and public or private
market debt. The Corporation has already begun the process of securing these
debt facilities and expects them to be completed upon regulatory approval of the
STP-McKay project, which is expected to occur before August 31, 2010.


Readers' Advisory

This press release shall not constitute an offer to sell or the solicitation of
an offer to buy any securities, nor shall there be any sale of securities in any
state in the United States in which such offer, solicitation or sale would be
unlawful. The securities referred to herein 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 an applicable
exemption from registration requirements.


This press release may contain statements within the meaning of safe harbour
provisions as defined under Securities Laws and Regulations. The above
statements are based on the current expectations and beliefs of Southern
Pacific's management and are subject to a number of risks and uncertainties that
may cause the actual results to differ materially from those described above.


Safe Harbour

This news release contains certain "forward-looking information" within the
meaning of such statements under applicable securities law including estimates
as to: future production, 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 and other hydrocarbons,
the timeline for the achievement of anticipated exploration, anticipated results
from the 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, variation between
estimates of reserves data and actual results, the inherent risks involved in
the exploration and development of conventional 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 SAGD heavy oil and 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, including the
offering, project financing debt and public or private market debt. 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.