Santa Maria Petroleum Inc. Terminates Its Participation Interest in Block LLA36 in the Los Llanos Basin in Colombia

TORONTO, ONTARIO--(Marketwired - Oct. 23, 2013) -

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Santa Maria Petroleum Inc. (TSX VENTURE:SMQ) ("Santa Maria" or the "Company") today announces that it has entered into an agreement with the operator of Block LLA36 in the Llanos Basin in Colombia that will terminate the Company's participation interest in LLA36. The Company will have no further interest in the Block nor will it have any further obligations or liabilities.

$1.1 million in Letters of Credit that had been provided by Santa Maria to the Colombian Angencia Nacional de Hidrocarburos (ANH) in order to guarantee work commitments on this block have been released and replaced by Letters Credit provided to the ANH by Montecz S.A. These Letters of Credit had been secured by a combination of cash on deposit and an Indemnification Agreement with Export Development Canada.

Following the sale of its interest in Block LLA36, Santa Maria will continue to hold its private participating interests in Block LLA27 in the Llanos Basin of Colombia.

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.

Cautionary Statements

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 is 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.

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