PLANO, TX,
Feb. 14, 2013 /PRNewswire/ - Santa Fe
Petroleum, Inc. (the "Santa Fe") (OTCBB: SFPI) is pleased to
announce it has purchased additional oil and gas leases with plans
for additional drilling. Santa
Fe's Lease Acquisitions now total approximately 1,704
acres.
On February 11,
2013, Santa Fe completed
the purchase of multiple leases totaling approximately 1,628 in the
area of its test well in North Central
Texas. This purchase, plus the existing 76 acres that
Santa Fe already owned, brings the
total of the Company's holdings to 1,704 acres for future
drilling. With this added acreage, Santa Fe expects to plan for approximately
12-20 drilling locations depending on the number of Marble Falls and Barnett Shale oil wells that
are drilled respectively.
Tom Griffin, CEO
and Chairman of the Board of Santa Fe Petroleum, Inc. stated, "We
wish to thank our shareholders for their support as we continue to
develop and implement our plan towards production. We also
anticipate continuing our research and identifying opportunities to
acquire a potential additional 10,000-20,000 acres in the area of
our test well. We are very excited about the purchase of these
leases and recognize that this is a significant first step as part
of our leasing acquisition plan in the area."
Griffin added, "Our previously completed test
well completion achieved its primary objective: to determine if the
well would produce on its own without the gas injection procedure
to pressurize the formation. However, based on these results,
we have determined the formation will need added pressurization to
produce. Through the previous test well results by Baker Hughes and
Weatherford Labs, the Company's
engineers have projected an estimated 75 barrels of oil production
per well per day through the gas pressurization of the formation
along with significant volumes of water. We know this is typical in
most shallow wells being drilled in the Barnett Shale and
Marble Falls formations in the
north central Texas area.
Based on this information, we plan to drill a number of water
disposal wells along with the production wells throughout our
drilling program in this area."
According to the Baker Hughes and Weatherford
Labs Test Well Reserve Study, there is an estimated average
"barrels of oil in place" of over 18,000 Barrels per acre in the
Barnett Shale formation alone. The results estimated a 20% recovery
rate, which equates to approximately 3,590 barrels of oil
recoverable per acre.
Griffin concludes, "We are excited and
optimistic about the great potential of this project due to the
reserve study results obtained through the studies of two world
class industry research companies, Baker Hughes and Weatherford Labs."
About Santa Fe Petroleum Inc.
Santa Fe Petroleum, Inc. is an exploration stage
oil and gas company with over 1,700 acres of property located in
the Barnett and Marble Falls oil
segment of North Central Texas.
The company has completed a test well on its existing properties
and reserve studies done by Baker Hughes and Weatherford Labs determined an estimated 3,590
barrels of oil recoverable per acre (based on a 20% recovery rate).
Management has over 50 years of combined oil and gas development
and production experience and plans to bring its current leases
into production while also undertaking a lease acquisition campaign
in the surrounding areas. For more information on Santa Fe, please visit
www.sfpetroleum.com.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy securities in any
jurisdiction.
Safe Harbor: This release may contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Statements contained in
this release that are not historical facts may be deemed to be
forward-looking statements. Investors are cautioned that
forward-looking statements are inherently uncertain. Actual
performance and results may differ materially from that projected
or suggested herein due to certain risks and uncertainties
including, without limitation, ability to obtain financing and
regulatory and shareholder approvals for anticipated
actions.
SOURCE Santa Fe Petroleum, Inc.