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.