CALGARY, ALBERTA--(Marketwire - Nov. 28, 2012) - Santa Maria Petroleum Inc. (TSX VENTURE:SMQ) ("Santa Maria" or the "Company") is pleased to announce that it has obtained an updated reserve evaluation of its oil and gas properties effective June 30, 2012 (the "Updated Reserves Report") as prepared by Petrotech Engineering Ltd. ("Petrotech"), an independent qualified reserves evaluator. Petrotech is the Company's independent qualified reserve evaluator for annual disclosure requirements. The Updated Reserves Report is an update to the reserve evaluation of the Company's oil and gas properties effective December 31, 2011 (the "2011 Report") as prepared by Petrotech and is based on the completion, testing and production of the Flami field in Block 27 and revisions to operating costs and reserve data for the Canaguay well in the Canaguaro field based on operations and production from January 1, 2012 to June 30, 2012.
A summary report is available for review on SEDAR at www.sedar.com.
The Updated Reserves Report presented a 219% increase to the Company's net proved and probable ("2P") heavy oil reserves and a 259% increase to the before-tax net present value of 2P reserves at a 10% discount rate as compared to the annual filing, effective December 31, 2011. All of the Company's reserves are located in Colombia. The Company only has heavy oil reserves.
MARKETABLE OIL AND GAS RESERVES
Proved and Probable Reserves and Net Present Values (in $US)
(Forecast Prices and Costs)
Reserve | NPV of Future Net Revenue Before Tax | |||||||||||||||
Category | Heavy Oil Reserves | Discounted (in M$) @ | ||||||||||||||
100% | Gross | Net | 0% | 5% | 10% | 15% | 20% | |||||||||
(Mbbl) | (Mbbl) | (Mbbl) | (M$) | (M$) | (M$) | (M$) | (M$) | |||||||||
Proved: | ||||||||||||||||
Developed Producing | 414 | 104 | 95 | 3,288 | 2,986 | 2,734 | 2,521 | 2,340 | ||||||||
Developed Non-Producing | 304 | 136 | 124 | 5,770 | 5,391 | 5,060 | 4,768 | 4,509 | ||||||||
Undeveloped | 1,824 | 530 | 485 | 4,671 | 3,351 | 2,301 | 1,454 | 764 | ||||||||
Total Proved | 2,542 | 770 | 704 | 13,729 | 11,729 | 10,095 | 8,744 | 7,613 | ||||||||
Probable: | ||||||||||||||||
Developed Producing | 205 | 51 | 47 | 2,466 | 2,155 | 1,910 | 1,713 | 1,553 | ||||||||
Developed Non-Producing | 125 | 35 | 32 | 1,981 | 1,869 | 1,771 | 1,684 | 1,607 | ||||||||
Undeveloped | 2,333 | 703 | 643 | 22,036 | 18,560 | 15,885 | 13,788 | 12,115 | ||||||||
Total Probable | 2,663 | 789 | 722 | 26,483 | 22,584 | 19,565 | 17,185 | 15,275 | ||||||||
Total Proved + Probable | 5,205 | 1,559 | 1,426 | 40,213 | 34,312 | 29,660 | 25,929 | 22,888 |
CANAGUARO FIELD
Proved and Probable Reserves and Net Present Values (in $US) for the Canaguaro Block
(Forecast Prices and Costs)
NPV of Future Net Revenue Before Tax | ||||||||||||||||
Heavy Oil Reserves | Discounted(in M$) @ | |||||||||||||||
Reserve Category | 100% | Gross | Net | 0% | 5% | 10% | 15% | 20% | ||||||||
(Mbbl) | (Mbbl) | (Mbbl) | (M$) | (M$) | (M$) | (M$) | (M$) | |||||||||
Proved: | ||||||||||||||||
Developed Producing | 414 | 104 | 95 | 3,288 | 2,986 | 2,734 | 2,521 | 2,340 | ||||||||
Undeveloped | 1,021 | 255 | 235 | 1,975 | 1,194 | 589 | 117 | -258 | ||||||||
Total Proved | 1,435 | 359 | 330 | 5,264 | 4,180 | 3,324 | 2,638 | 2,082 | ||||||||
Probable: | ||||||||||||||||
Developed Producing | 205 | 51 | 47 | 2,466 | 2,155 | 1,910 | 1,713 | 1,553 | ||||||||
Undeveloped | 1,033 | 258 | 238 | 6,803 | 5,459 | 4,472 | 3,735 | 3,176 | ||||||||
Total Probable | 1,238 | 309 | 285 | 9,269 | 7,613 | 6,382 | 5,449 | 4,729 | ||||||||
Total Proved + Probable | 2,673 | 668 | 615 | 14,532 | 11,793 | 9,705 | 8,087 | 6,811 |
Total Future Net Revenue, Undiscounted (in $US) for the Canaguaro Block
(Forecast Prices and Costs)
Reserves Category |
Revenue | ANH Royalty | ORR | Capital Exp. | Variable Op. Exp. | Fixed Op. Exp. | Pipeline Tariff | Future Net Revenue | |||||||
(M$) | (Mbbl) | (M$) | (M$) | (M$) | (M$) | (M$) | (M$) | ||||||||
Proved: | |||||||||||||||
Developed Producing | 8,431 | 8 | 506 | 77 | 2,270 | 1,615 | 675 | 3,288 | |||||||
Developed Non-Producing | |||||||||||||||
Undeveloped | 20,775 | 20 | 1,247 | 6,599 | 5,771 | 3,468 | 1,715 | 1,975 | |||||||
Total Proved | 29,207 | 29 | 1,752 | 6,676 | 8,041 | 5,084 | 2,390 | 5,264 | |||||||
Probable: | |||||||||||||||
Developed Producing | 4,161 | 4 | 250 | 0 | 1,129 | -19 | 336 | 2,466 | |||||||
Developed Non-Producing | |||||||||||||||
Undeveloped | 21,028 | 21 | 1,262 | 3,440 | 5,957 | 1,796 | 1,770 | 6,803 | |||||||
Total Probable | 25,189 | 25 | 1,511 | 3,440 | 7,086 | 1,777 | 2,106 | 9,269 | |||||||
Total Proved + Probable | 54,395 | 53 | 3,264 | 10,116 | 15,126 | 6,861 | 4,496 | 14,532 |
FLAMI FIELD
Proved and Probable Reserves and Net Present Values (in $US) for the LLA Block-27
(Forecast Prices and Costs)
NPV of Future Net Revenue Before Tax | ||||||||||||||||
Heavy Oil Reserves | Discounted(in M$) @ | |||||||||||||||
Reserves Category | 100% | Gross | Net | 0% | 5% | 10% | 15% | 20% | ||||||||
(Mbbl) | (Mbbl) | (Mbbl) | (M$) | (M$) | (M$) | (M$) | (M$) | |||||||||
Proved: | ||||||||||||||||
Developed Producing | 304 | 136 | 124 | 5,770 | 5,391 | 5,060 | 4,768 | 4,509 | ||||||||
Undeveloped | 803 | 275 | 251 | 2,695 | 2,157 | 1,711 | 1,338 | 1,022 | ||||||||
Total Proved | 1,107 | 411 | 374 | 8,465 | 7,549 | 6,771 | 6,106 | 5,531 | ||||||||
Probable: | ||||||||||||||||
Developed Producing | 125 | 35 | 32 | 1,981 | 1,869 | 1,771 | 1,684 | 1,607 | ||||||||
Undeveloped | 1,300 | 445 | 405 | 15,234 | 13,101 | 11,413 | 10,053 | 8,940 | ||||||||
Total Probable | 1,425 | 480 | 437 | 17,215 | 14,970 | 13,183 | 11,737 | 10,546 | ||||||||
Total Proved + Probable | 2,532 | 891 | 811 | 25,680 | 22,519 | 19,954 | 17,842 | 16,078 |
Total Future Net Revenue, Undiscounted (in $US) for the LLA Block 27
(Forecast Prices and Costs)
Revenue | CapEx | Variable OpEx | Fixed OpEx | Pipeline Tariff | Future Net Revenue | |||||||
Reserves Category | (M$) | (M$) | (M$) | (M$) | (M$) | (M$) | ||||||
Proved: | ||||||||||||
Developed Producing | 10,802 | 343 | 1,173 | 1,228 | 2,289 | 5,770 | ||||||
Developed Non-Producing | ||||||||||||
Undeveloped | 21,496 | 4,088 | 2,805 | 6,925 | 4,983 | 2,695 | ||||||
Total Proved | 32,299 | 4,430 | 3,978 | 8,153 | 7,271 | 8,465 | ||||||
Probable: | ||||||||||||
Developed Producing | 2,770 | 0 | 300 | -95 | 584 | 1,981 | ||||||
Developed Non-Producing | ||||||||||||
Undeveloped | 35,045 | 942 | 4,647 | 5,970 | 8,253 | 15,234 | ||||||
Total Probable | 37,815 | 942 | 4,946 | 5,875 | 8,837 | 17,215 | ||||||
Total Proved + Probable | 70,114 | 5,372 | 8,925 | 14,028 | 16,108 | 25,680 |
Pricing Assumptions
The June 29, 2012 oil price closed at $84.96 per barrel for West Texas Intermediate (WTI),$92.46 per barrel for Vasconia Oil (posted Colombian export oil from Platts South America) and at $97.53 per barrel for Brent. The forecast Vasconia oil price is $91.80 per barrel for the remaining months of 2012. All future commodity prices of crude oil prices were taken from NYMEX (www.cmegroup.com) on the last day of trading in June 2012. The historical prices for oil were taken from Sproule and Associates Inc. A table of forecast crude oil prices is provided on the summary report.
Reconciliation of Reserves
The following table sets out the reconciliation of the Corporation's net reserves based on forecast prices and costs from December 31, 2011 to June 30, 2012.
Heavy Oil Reserves | ||||||
Net proved | Net probable | Net proved and probable | ||||
Opening balance | 173 | 274 | 447 | |||
Technical revisions | 177 | 11 | 188 | |||
Discoveries - Flami-1 | 374 | 437 | 811 | |||
Production | (22) | - | (22) | |||
Closing balance | 702 | 722 | 1,424 |
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 reserves and future net revenue in this news release represent estimates only. The reserves and future net revenue from the Company's properties have been independently evaluated by Petrotech with an effective date of December 31, 2011 and updated to June 30, 2012. This evaluation includes a number of assumptions relating to factors such as initial production rates, production decline rates, ultimate recovery of reserves, timing and amount of capital, salvage values, royalties and other government levies that may be imposed during the producing life of the reserves.
These assumptions were based on the price forecast of Sproule and Associates Inc. and many of these assumptions are subject to change and are beyond the control of the Company. Actual production, sales and cash flows derived there from, will vary from the evaluation and such variations could be material. The present value of estimated future net cash flows referred to herein should not be construed as the current market value of estimated heavy oil reserves attributable to the Company's properties. Estimates of future net revenue do not represent fair market value.
The foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information contained in this news 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.
NEITHER THE 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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