Southern Pacific Resource Corp. has completed another Inflow Control Device (ICD) installation on one of its SAGD well pairs at the STP-McKay Thermal Project. The ICDs were installed on the 2P5 well pair, making this the third well pair of the 12 existing well pairs equipped with these devices.

The 2P5 well pair was shut-in for 14 days to cool off and complete the workover; it was placed back on production on June 10. The ICD system is intended to improve wellbore conformance in a two part process. First, the horizontal producer length is segmented with isolation packers and second, the ICD devices are installed into the segments which are designed to restrict the inflow of steam from short circuits, thus allowing other sections of the wellbore to produce without having to rate restrict the entire well pair.

Southern Pacific has plans to install additional ICD configurations into more of the well pairs at McKay. The exact timing around future ICD installation is subject to further clarity on the Company's ongoing strategic alternatives process announced in December 2013, but it is expected that further installations will be completed over the next three months. Southern Pacific also has continued to advance its regulatory application to downspace the existing McKay well pads with additional SAGD well pairs.