Santa Maria Petroleum Inc. Announces Third Quarter 2013 Results

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Santa Maria Petroleum Inc. (formerly Quetzal Energy Ltd.) (TSX VENTURE:SMQ)
announces its unaudited results for the three and nine months ended September
30, 2013.


POSITION OF THE COMPANY AND HIGHLIGHTS DURING THE THREE MONTHS ENDED SEPTEMBER
30, 2013 


In late 2009 Santa Maria acquired working interests in four unexplored and
undeveloped crude oil exploration blocks the Llanos Basin of Colombia. At the
same time, the Company assumed obligations to guarantee the completion of
certain work commitments stipulated in the various exploration and production
contracts entered into by the respective operators of the blocks and the Agencia
Nacional de Hidrocarburos (the "ANH"). Santa Maria's share of these work
commitments have been supported by underlying Letters of Credit held by the
Company's banks which may be called by the ANH if the work commitments are not
met by deadlines established by the ANH. 


Share capital issuances on the Toronto Venture Exchange in September 2009 and
January 2011 provided the funds to acquire the properties and commence
exploration programs on the properties. In 2010, the Company and its joint
venture partners began programs to acquire and interpret new seismic data and
reinterpret pre-existing seismic data. The joint venture partners then commenced
with its exploration program and drilled the Canaguay-1 well on the Canaguaro
block in 2010, the Mani and Flami wells on Block 27 in 2012, and two wells in
Block 21 in 2013.  


Following completion of the initial exploration programs, management determined
that the only blocks suitable for further development were the Canaguaro Block
and Block 27. However, given the Company's lack of available capital, and the
state of the financial markets at the time, it was determined that the Company
would be unable to fund further development of the Canaguaro Block and Block 27.
Accordingly, management began discussions with other exploration companies with
the view to finding an attractive merger, farm-in or possible sale that would
yield a return to the shareholders. Over the months that followed, the Company
entered into a series of transactions:




--  On June 7, 2013 Santa Maria announced the sale of its 25% oil and gas
    interest in the Canaguaro Block to Petrominerales Ltd.
    ("Petrominerales") (TSX:PMG); the transaction was completed on September
    7, 2013. Petrominerales paid Santa Maria a total of $US6.0 million in
    cash for its 25 per cent private participating interest. Certain
    customary post-completion price adjustments were completed and all
    vendor liabilities outstanding on that date will be paid by the end of
    September 2013. The funds were primarily used to reduce the liabilities
    incurred from drilling the Mani and Flami wells. 
--  On September 13, 2013 Santa Maria remitted $1,875,000 to the operators
    of Block 21 in Colombia as the third and final installment pursuant to
    the Amending Agreement to the original Participation Agreement for Block
    21. The operator had previously completed the work commitments for Block
    21 with the drilling of Calacho-1 and Rocamao No. 1 wells, both of which
    were abandoned following the completion of the testing programs. Santa
    Maria has satisfied its financial obligations in respect of this block
    and no further funding is required. 
--  On October 23, 2013 the Company announced that it had entered into an
    agreement with the operator of Block LLA36 in the Llanos Basin in
    Colombia that terminated the Company's participation interest in LLA36.
    $1.1 million in Letters of Credit that had been provided by Santa Maria
    to the 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. Santa Maria has satisfied its financial obligations
    in respect of this block and no further funding is required. 
--  On November 23, 2013, the Company announced that it had entered into a
    Share Purchase Agreement (the "Share Purchase Agreement") with Global
    Oil & Gas Services Ltd. ("Global"), a company incorporated pursuant to
    the laws of Dubai, UAE, by which Global will acquire all of the shares
    of a newly incorporated wholly owned subsidiary of Santa Maria
    ("Newco"). Through a reorganization to be completed by December 18,
    2013, Santa Maria shall transfer to Newco the assets and liabilities of
    its Colombian branch, including its participation interest in the
    investments, income and revenues of the LLANOS 27 Project in the Los
    Llanos Basin in Colombia (the "Project"), subject to a working capital
    adjustment. Under the working capital adjustment, Newco will have a cash
    balance of $US450,000 and all amounts receivable including refundable
    VAT and income tax amounts will be paid to Santa Maria. Santa Maria will
    pay all outstanding trade liabilities incurred to the closing date. 
    
    Under the Share Purchase Agreement, Global shall replace the $US1.85
    million Letter of Credit that had been provided by Santa Maria to the
    ANH in order to guarantee the operator's work commitments on this
    project. This Letter of Credit is currently secured by a guaranteed
    investment certificate. When the Letter of Credit is released and the
    working capital requirement is funded, the remaining funds,
    approximately $1.4 million will be transferred to the Company's general
    cash balances. 

--  On November 12, 2013 the Company sold its 10% overriding interests in
    two wells on its former Guatemalan properties for $70,000 to the current
    operator of those properties. The first well, Atzam-4, has been drilled
    and is currently producing at approximately 140 bopd. Drilling of the
    second well, Atzam-5, is schedule to be spud by year end. 



Forward Looking Statements - Certain information set forth in this news release
may contain forward-looking statements that involve substantial known and
unknown risks and uncertainties. These forward-looking statements are subject to
numerous risks and uncertainties, certain of which are beyond the control of
Quetzal, including, but not limited to the impact of general economic
conditions, industry conditions, volatility of commodity prices, risks
associated with oil and gas activities, currency fluctuations, dependence upon
regulatory approvals, the availability of future financing and exploration risk.
Readers are cautioned that the assumptions used in the preparation of such
information, although considered reasonable at the time of preparation, may
prove to be imprecise and, as such, undue reliance should not be placed on
forward-looking statements. 


Neither 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Santa Maria Petroleum Inc.
Ronald MacMicken
President & Chief Executive Officer
416-943-0021
ron@birchislandcapital.com
www.smpetroleum.com
Santa Maria Petroleum (TSXV:SMQ)
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