Santa Maria Petroleum Inc
TSX VENTURE : SMQ

August 29, 2013 17:05 ET

Santa Maria Petroleum Inc. Announces Second Quarter 2013 Results

CALGARY, ALBERTA--(Marketwired - Aug. 29, 2013) -

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Santa Maria Petroleum Inc. (formerly Quetzal Energy Ltd.) (TSX VENTURE:SMQ) announces its unaudited results for the three and six months ended June 30, 2013.

HIGHLIGHTS DURING THE THREE MONTHS ENDED JUNE 30, 2013

  • On June 7, 2013 Santa Maria announced that it had completed the sale of its 25% oil and gas interest in the Canaguaro Block to Petrominerales Ltd. ("Petrominerales") (TSX:PMG); the transaction was completed on June 7, 2013. Petrominerales paid Santa Maria a total of $US6.0 million in cash for its 25 per cent private participating interest. Certain customary post-completion price adjustments will be completed and all vendor liabilities outstanding on that date will be paid by the end of September 2013. The transaction was first announced on May 6, 2013.
  • On June 13, 2013 Santa Maria remitted $1,875,000 to the operators of Block 21 in Colombia as the third and final installment pursuant to the Amending Agreement to the original Participation Agreement for Block 21. The Company has satisfied its financial obligations in respect of this block and no further funding is required.
  • On February 26, 2013 the operator of Block 21 commenced drilling the Calacho-1 well, the first exploration well on this block and reached total depth of 7,000 feet on March 2, 2013. On March 14, 2013 the operator of Block 21 commenced drilling the Rocamao well, the second exploration well on this block and reached total depth of 7,870 feet on March 27, 2013. Both of these wells were tested during the second quarter of 2013.

    The C7 formation in the Calacho No. 1 well was tested. During the test period the C7 formation produced a total of 5,857 barrels of fluid, consisting of 5,669 barrels of water and 188 barrels of 35 degree API oil. The maximum fluid production rate was approximately 1,450 barrels per day. The testing program was ended when the water cut reached 100%. With no further oil production, the operator made the decision to abandon the well.

    The C7 formation in the Rocamao No. 1 well was also tested. The C7 formation produced 64 barrels of water in 3 hours at rates that fluctuated between 192 and 336 barrels of fluid per day. Total testing resulted in the production of 329 barrels of water with no oil produced and the decision was made by the operator to abandon the well. With no oil produced, the operator made the decision to abandon the well.

    With the abandonment of both the Calacho No. 1 well and the Rocamao No. 1 well, Santa Maria Santa Maria informed the operator that it would not exercise its option to carry on with an interest in the block.
  • At the annual and special general meeting held in Toronto, Ontario on June 27, 2013 the shareholders approved the continued appointments of Mr. Ron MacMicken, Mr. Andrew DeFrancesco, Mr. Gerry Feldman, Mr. Steve VanSickle and Mr. Doug Manner to the board of directors. The shareholders also confirmed the appointment of MNP LLP as the Company's auditor.

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.

Neither 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.

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