TORONTO, ONTARIO--(Marketwire - June 21, 2012) - Santa Maria Petroleum Inc. (TSX VENTURE:SMQ) ("Santa Maria" or the "Company") is pleased to announce a new oil discovery in the Une Formation at the Flami-1 well at the Llanos 27 Block in Colombia.
The Flami-1 well is the second well drilled by NCT Energy Group C.A. Colombia, as official Operator of the LLANOS 27 Block, along with Santa Maria and its partners. The well commenced drilling on April 23, 2012 and was drilled with the Saxon 132 1,500 horsepower rig and was successfully drilled to a total depth of 9,300 feet on May 31 2012.
Well logs indicated an estimated 20 feet of potential gross oil pay in the Mirador formation and 22 feet in the Une formation. Testing operations of the Une formation have now concluded and Santa Maria and its partners are now preparing operations to conduct the test of the Mirador formation.
Une Formation Test
Testing operations commenced on June 13, 2012 with the Une formation being perforated at the 9,086-9,100 foot interval.
Phase 1 of the test involved producing out the drilling control fluids and cleaning the wellbore. Over a 60 hour period the well produced 1,514 BOPD of 15.5 degree API oil with an average watercut of 13%. Cumulative oil production over those 60 hours was 3,786 barrels of oil.
Following Phase 1 of the test the well was shut in to perform a 24 hour pressure build- up test. During this time, the formation pressure was measured at 3,850 psi.
Phase 2 of the test involved periodically stepping up the total fluid production rate to observe watercut and overall fluid production. Cumulative production over a 73 hour period was 5,496 barrels of oil and was produced in the following stages:
1. Stage 1: Over an initial period of 29 hours the well produced 1,403 BOPD
(1,695 total over 29 hours) with an average watercut of 20%
2. Stage 2: The drawdown rate was increased and over a period of 20 hours
the well produced 1,832 BOPD (1,527 total over 20 hours) with a watercut
3. Stage 3: The drawdown rate was increased and over a period of 15 hours
the well produced 2,160 BOPD (1,350 total over 15 hours) with a watercut
4. Stage 4: The drawdown rate was increased and over a period of 9 hours
the well produced 2,464 BOPD (924 total over 9 hours) with a 12%
These test results are preliminary and are not necessarily an indication of the longer-term potential of the well. Additional tests will be performed once the well can be placed on an extended test.
Mirador Formation Test
Operations are now being organized to conduct a test of the Mirador formation and results are expected in the next 2-3 weeks.
Following completion of the Mirador test, the well will be shut in while an application is made to the Ministry of Mines in Colombia to put the well on an extended test. This application approval is expected to take four to six weeks, at which time the well can be put back on production and oil from the extended test sold to market.
Santa Maria is paying 50% of the total cost of the well and will earn 45.275% of production before payout and 34.25% of production after payout under a private participating interest agreement.
About Santa Maria Petroleum Inc.
Santa Maria is a junior oil and gas company with private participating interests in 4 blocks in the Llanos Basin of Colombia.
This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws (together, "forward-looking information"). The use of any of the words "expect", "anticipate", "continue", "estimate", "believe", "plans", "intends", "confident", "may", "objective", "ongoing", "will", "should", "project", "should" and similar expressions are intended to identify forward-looking information.
The forward-looking information is based on certain key expectations and assumptions made by Santa Maria, including expectations and assumptions concerning the operational results in Colombia. Although Santa Maria believes that the expectations and assumptions on which the forward-looking information are based are reasonable, undue reliance should not be placed on the forward-looking information because Santa Maria can give no assurance that they will prove to be correct.
Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the inherent risks involved in the exploration and development of oil and gas properties, the uncertainties involved in interpreting drilling results and other geological data, uncertainties relating to fluctuating oil and gas prices, the possibility of cost overruns or unanticipated costs and expenses and other factors including unforeseen delays. Anticipated exploration and development plans relating to Santa Maria's properties are subject to change.
The foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information contained in this press release is made as of the date hereof and Santa Maria undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.