Santa Maria Petroleum Inc. Announces Second Quarter 2012 Results

CALGARY, ALBERTA--(Marketwire - Aug. 29, 2012) -

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Santa Maria Petroleum Inc. (formerly Quetzal Energy Ltd.) (TSX VENTURE:SMQ) announces its unaudited results for the six months ended June 30, 2012.

HIGHLIGHTS DURING THE PERIOD ENDED JUNE 30, 2012

HIGHLIGHTS DURING THE QUARTER

• The Company received approval from its shareholders at the special annual shareholders' meeting held on May 31, 2012 to change the name of the Company to Santa Maria Petroleum Inc.
  
  
• On April 23, 2012, Santa Maria announced that NCT Energy Group C.A. Colombia, as official Operator of the Llanos 27 Block, along with Santa Maria and its partners, commenced drilling the Flami-1 well on the Llanos 27 Block in the Llanos Basin of Colombia. The well was successfully drilled to a total depth of 9,300 ft. on May 31, 2012. On June 21, 2012 the Company announced a new oil discovery in the Une formation of the Flami-1 well. The initial testing of the well was done in two stages over a period of 5.5 days with drawdown being gradually increase over that time. The final phase of the test produced average production rates of 2,464 bopd over 9 hours with a 12% watercut. The well was put back into production on August 17, 2012 as part of the long term testing program upon receiving its permit from the Colombian government. The Company is paying 50% of the gross amount to earn a private participating interest of 45.275% before payout and 34.25% after payout.
  
  
• On April 23, 2012, the Company announced the appointment of Mr. Steve VanSickle and Mr. Doug Manner as directors of the Company. Mr. VanSickle has over 25 years of experience in the Canadian and international oil and gas industry and is currently the President, Chief Executive Officer and a Director of Fairborne Energy Ltd. (a TSX-listed company) and the lead independent director of CUB Energy Inc. (a TSXV-listed company). Mr. Manner has over 35 years of experience in the Canadian and international oil and gas industry and is currently the Chief Executive Officer and a Director of Sintana Energy Corporation (a TSX-listed company). At the same time the Company accepted the resignations of Mr. Steven Austin and Mr. Kevin O'Connor as directors of the Company. Both Mr. Austin and Mr. O'Connor had served the Company well for several years for which the Company expressed its appreciation.
  
  
• On April 23, 2012, the Company announced that the board of directors adopted a new incentive share option plan (the "Option Plan") and had granted stock options to purchase an aggregate of 1,493,759 common shares of the Company at a price of $C1.00 per share to certain eligible participants. The Options are exercisable for a period of five years from the date thereof and vest as to one-third on each of the first, second and third anniversaries of the date thereof.
  
  
• At the special annual shareholders meeting held on May 31, 2012 the company received approval from its shareholders to consolidate the issued and outstanding Common Shares on the basis of one post-consolidated Common Share for every 10 pre-consolidation Common Shares. The Board believes that consolidation of the Common Shares should enhance their marketability as an investment and should facilitate additional financings to fund operations in the future. Approval from TSX has been received. The 600,764,492 pre-consolidation Common Shares that were outstanding have been reduced to 60,076,449 post-consolidation Common Shares. Accordingly, all employee and officer stock options and the share and per share disclosures in the June 30, 2012 condensed interim financial statements and this MD&A have been revised to reflect the consolidation of shares for all periods presented.
  
  
• At the special annual shareholders meeting held on May 31, 2012 the shareholders approved the appointment of Mr. Scott R. Cochlan as the sixth director of the Company. Mr. Cochlan is a partner with Torys LLP and is recognized internationally as a leading Canadian corporate finance lawyer.
  
  
• The Canaguay-1 well had been shut in just prior to the end of the first quarter for maintenance and repairs to its pump. It was returned to production on April 25, 2012 and produced an average of 1,037 bopd for 51 days until further maintenance and clean-up was required on June 15, 2012.
  
  

Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Quetzal, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with oil and gas activities, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.