Santa Fe Petroleum, Inc. (OTCBB: SFPI)
Santa Fe Petroleum, Inc. (OTCBB: SFPI)
The foundation for Santa Fe is one of strength and integrity that can be seen in its business practices and its people with their extensive management experience and expertise in all areas of the business operation.
Santa Fe’s objective is to seek out undeveloped oil and gas fields, which maybe in a trend of known producing formations. This strategy offers the unique potential for virgin reservoir pressures still untapped which greatly strengthens the opportunity to capture commercial quantities of oil and gas reserves. These potentially untapped reservoirs are typically identified through a variety of researched information through the use of technology, databases and professional analysis.
Santa Fe manages all aspects of its business from mineral interest leasing; to drilling and operating of the wells; accounting and production of investor revenue checks; and the design, installation, and management of gas line collection systems that carry gas production to market. In addition, the application of the latest vertical and horizontal technologies are utilized along with the latest in scientific research, all of which have proven to greatly enhance the percentage of successful drilling and completion of commercial wells in the oil and gas industry. Santa Fe’s results have proven its techniques can greatly increase the opportunities for success.
Barnett Oil Prospect
In December 2009, Santa Fe drilled a test well in the Barnett “Oil Window” and hired Baker Hughes to log and analyze side wall core samples which were sent to Weatherford Laboratories for further study. The formation at this location was 101 ft. thick. The side wall core samples were taken every two feet beginning a few feet below the Barnett Shale in the Ellenberger formation and above the Barnett Shale a few feet in the Marble Falls formation. The results show oil exists in a porous blanket type formation and is 101 feet thick. Weatherford Laboratories calculations of the “oil-in-place” as determined from the Shale Rock Properties (SRP) measurements of the core samples is 1.6 million barrels over a 100 ft. thick Barnett Shale formation on an 80 acre location spacing, or 20,000 Barrels per acre.
The petroleum engineer hired by Santa Fe determined that there should be five (5) wells per drilling location (each, a “Project”) in a layout similar to a dice with points (5) spots with the center location serving as the natural gas injection well and the four corner wells to be production wells. The engineer estimates full production from the pressurizing of the formation with the natural gas will take from 60 to 120 days and result in an estimated production rate of 50 to 200 barrels of oil per day (“BOE/day”) per production well (4 wells). Thus, using 75 BOE/day per production per well the total barrels produced monthly per Project would be 9,000 barrels.
The Company has a technical report written by a petroleum engineer on oil recovery in shale in Texas that estimated an oil recovery rate of thirty-seven percent (37%) or more is possible. However, using the engineer’s conservative recovery rate of approximately 20% this would equate to a per acre recovery of approximately 3,600 barrels per acre or 432,000 barrels of recoverable oil on a proposed 120 acre drilling location. Using an estimated net value of $65 per barrel after lease operating cost and a net revenue est. of 80%, the net reserve value estimate would be approximately $28 million per 120 acre location.
SFPI’s goal is to lease upwards of at least 20,000 acres in the area of the test well for our drilling and growth plan over the next few years. This will give the Company a major project for drilling both the Barnett Shale and Marble Falls formations.
Marble Falls Prospect
In the summer of 2010 a horizontal test well was drilled in the Marble Falls formation in Jack County, Texas with exceptional oil production results estimated to be 300 BOE/day. The Marble Falls formation lies directly above the Barnett formation throughout north Texas and appears to have built up major oil reserves from the migration of oil from the Barnett formation. The operator that drilled the horizontal well as well as other major oil companies including EOG & Devon has since drilled a number of additional horizontal wells in the Marble Falls with continuing success.
The test well drilled by Santa Fe in December 2009 has approximately 175 ft. of thickness through the Marble Falls formation at its location. Because of the thickness in the test well location and the production results from the above referenced horizontal wells, Santa Fe is considering whether it will drill the next well in our acreage area as a horizontal well in the Marble Falls formation.
The primary assets upon the closing are contracts to purchase leases & top leases in the area totaling approximately 2,732+/- acres (including a 76+/- acre test well location owned by our wholly-owned subsidiary, Santa Fe Land). The leases are estimated to hold an approximate 80% net revenue interest (“NRI”). The additional acreage wraps our original 76 acre test well location on the east, south and west sides. The test well location is planned to be enlarged from a 76+/- location to a 120 acre location which will include the Company’s leased acreage on its east side. This will create a 120 acre Proven Undeveloped (“PUD”) location on the south and west sides of the test location. The objective is to maintain leases totaling 10,000 to 20,000 acres for the Company to create substantial oil reserves.
Tom Griffin, CEO, Chairman of the Board and Director
Mr. Griffin oversees strategic long-term planning and is directly involved in the evaluation of all developmental drilling locations as well as drilling and completion operations. In addition, he has established strict company guidelines for geological, reserve value analysis and timely production of oil and/or gas operations that are to be used in the selection of developmental fields. These guidelines are also designed to identify potential daily production possibilities, drilling and completion cost, and timeliness of oil and/or gas production and cost associated with market sales requirements.
Mr. Griffin, after being Honorably Discharged from the United States Air Force in 1972, has had many accomplishments through more than forty years of successful diversified business ventures which have included numerous successful joint ventures. Since July 1997, Mr. Griffin has been the Chairman, Chief Executive Officer and President of our affiliate, Santa Fe Petroleum, LLC. Since September 1998, Mr. Griffin has been the President of our affiliate TexTron. Mr. Griffin has been the President of our wholly-owned subsidiary Santa Fe Land since April 2010.
As President of Santa Fe Petroleum, Mr. Griffin has managed the company with a high success record of commercial oil & gas production and provided a substantial investment return to Santa Fe Petroleum, LLC investors. Mr. Griffin has over 16 years of experience in the oil & natural gas industry and has successfully located, acquired and developed numerous properties.
Mr. Griffin was chosen to be a Director and Chairman of our Board because he was the founder of Santa Fe Petroleum, LLC in 1997 and has managed that company with a high success record in the exploitation of commercial oil & gas wells, giving a substantial investment return to Santa Fe Petroleum, LLC investors. Mr. Griffin has over 16 years of experience in the oil & natural gas industry and has successfully located, acquired and developed numerous properties.
Mark Zouvas, Chief Financial Officer, Treasurer, and Director
Mark Zouvas, has a BA from the University of California at Berkeley (Accounting and Philosophy). After graduating, he joined Price Waterhouse where he performed services for clients in the banking and real estate industries. He was formerly a licensed real estate broker and an accountant in the state of California. Mr. Zouvas was involved in commodities trading and served as the CFO for an independent clearing firm on the Chicago Mercantile Exchange. He has also been a CEO and CFO of several publicly traded entities and has excellent knowledge of SEC and FNRA reporting guidelines. Mr. Zouvas’ responsibilities have included asset development and fund raising. He has had over twenty-five years of experience in preparing investment summaries and has raised over $500 million through debt and equity offerings to investors both domestically and abroad. Mr. Zouvas passed all parts of the California CPA exam in 1991.
- SANTA FE PETROLEUM, INC. Files SEC form 8-K/A, Change in Directors or Principal OfficersEDGAR Online(Tue, Jan 22)
- Santa Fe Petroleum, Inc. Provides Corporate Update, Highlighting the Company’s Fourth Quarter AccomplishmentsPR Newswire(Mon, Jan 7)
- SANTA FE PETROLEUM, INC. Files SEC form 8-K/A, Entry into a Material Definitive Agreement, Completion of AcquisitionEDGAR Online(Thu, Dec 20)
- SANTA FE PETROLEUM, INC. Files SEC form 8-K, Change in Directors or Principal OfficersEDGAR Online(Mon, Dec 10)
- Santa Fe Petroleum, Inc. Announces the Status of the Frac/Completion of its Test Well ProjectPR Newswire(Wed, Nov 28)
- SANTA FE PETROLEUM, INC. FinancialsEDGAR Online Financials(Wed, Nov 21)
- SANTA FE PETROLEUM, INC. Files SEC form 10-Q/A, Quarterly ReportEDGAR Online(Thu, Nov 15)
- SANTA FE PETROLEUM, INC. Files SEC form 8-K/A, Entry into a Material Definitive Agreement, Completion of AcquisitionEDGAR Online(Wed, Nov 14)
- SANTA FE PETROLEUM, INC. Files SEC form 10-Q, Quarterly ReportEDGAR Online(Tue, Nov 13)
- Santa Fe Petroleum, Inc. Announces the Initiation of the Frac/Completion of its Test Well ProjectPR Newswire(Fri, Nov 2)