Santa Maria Petroleum Inc.
TSX VENTURE : SMQ

Santa Maria Petroleum Inc.

November 28, 2012 17:21 ET

Santa Maria Petroleum Inc. Announces Third Quarter 2012 Results

CALGARY, ALBERTA--(Marketwire - Nov. 28, 2012) -

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

HIGHLIGHTS DURING THE QUARTER ENDED SEPTEMBER 30, 2012 AND SUBSEQUENT

HIGHLIGHTS DURING THE QUARTER

  • On July 5, 2012 Santa Maria announced the completion of initial test operations on the Flami-1 well in Block 27, Colombia. Well logs indicated an estimated 20 feet of potential gross oil pay in the Mirador formation and 22 feet in the Une formation, and upon further testing, the joint venture decided to pursue production from the Une formation. The well was shut-in until August 18, 2012 when it received regulatory approval to commence its longer term production testing. The well has produced continuously since that date with the following production results.
Month (2012) Total gross
production (bbls)
Average bopd Santa Maria's share
@45.275%3 (bbls)
August 1 17,530 1,252 7,937
September 23,342 778 10,568
Q3 40,872 929 18,505
October 24,877 802 11,263
November2 17,572 651 7,956
Total 83,321 817 37,724
1 For the period of August 18, 2012 to August 31, 2012.
2 For the period of November 1, 2012 to November 27, 2012.
3 Santa Maria has a 34.25% working interest in the Flami-1 well, but earns 45.275% until it has recovered the capital expenditures made on behalf of its carried interest joint venture partners.

During the third quarter, Santa Maria's 42.75% pre-payout share of sales proceeds from the Flami-1 well, net of royalties and transportation costs, was $1,273,198, which has been capitalized.

  • The Canaguay well in the Canaguaro block, which had been shut-in for a work-over at the end of the second quarter, was brought back into production on July 15, 2012. The well was again shut-in on August 31, 2012 and for the month of September because of problems with the pump that caused the well to produce at an average of only 278 bopd. Production commenced again on October 1, 2012 and it has produced at an average of 618 bopd from that date until the date of this MD&A with a 62% water cut ratio.
Month (2012) Total gross
production (bbls)
Average bopd Santa Maria's share
@25% (bbls)
July1 5,156 303 1,289
August 8,165 263 2,041
September - - -
Q3 13,321 277 3,330
October 18,587 600 4,647
November2 17,553 650 4,388
Total 49,461 471 12,365
1 From the commencement of production on July 15, 2012 until July 31, 2012.
2 For the period of November 1, 2012 to November 27, 2012.

Santa Mara's 25% working interest share of sales proceeds, net of royalties, from the Canaguaro production during the third quarter was $294,256, which was capitalized.

  • On November 28, 2012, Santa Maria released the results of an interim reserve report effective June 30, 2012. The Company's estimated proved and probable reserves increased by 219% from 447 mbbl to 1,426 mbbl because of a 38% increase to the 2P (proved plus probable) reserves for the Canaguaro block, net of production in the first six months in 2012, and the addition of the Flami-1 field in Block 27. More information is provided on page 5, in the Oil and Gas Exploration and Development Operations section of this MD&A and the report is available on SEDAR.

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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