PLANO, TX, Oct. 4, 2012 /PRNewswire/ - Santa Fe Petroleum, Inc. (the "Company") (OTCBB: SFPI) (formerly Baby All Corp.) announced today it has executed the joint operating agreement ("JOA") with it's affiliate operator, TexTron Southwest, Inc. The JOA is the definitive agreement for conducting well operations with a licensed operator in the State of Texas.
As a result of JOA being finalized, the Company will commence the fracing process of its central Texas test well. As previously disclosed, Santa Fe drilled the test well, logged and took core samples from the Barnett formation, and shut-in the well pending test results from Baker Hughes and Weatherford Labs (Testing Companies). With promising results from the Testing Companies, the Company proceeded with its funding efforts. Now that the Company has secured the necessary funding, the Company will begin the process of acid fracing and completing the test well for production. This process includes the acid fracing and a slick-water sand process, which will fracture the formation to create permeability channels and thus easing the flow of oil to the wellbore. This completion method is unique for Barnet Shale wells and has the potential to generate an estimated production of 20 or more barrels of oil per day. This is prior to enhancing the pressure in the formation, which could potentially increase daily production to an estimated 75 barrels of oil per day.
"We are very excited to move to this next stage of production with our initial test well. The frac completion could result in commercial production and further our drilling and land acquisition process in the Test Well area," stated Tom Griffin, Chairman of Santa Fe Petroleum, Inc.
The Company is currently revising its private placement memorandum at an increased offering amount in order to facilitate its business plan in and around the Test Well.
For more information about Santa Fe Petroleum, Inc., please visit http://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.