Santa Maria Petroleum Inc. has been informed by Omega Energy Colombia, the operator of Llanos 21 block in the Llanos basin in Colombia, that it has commenced drilling the Calacho No. 1 well. The Calacho well is the first well of a planned two well drilling program on the block. The Calacho well is being drilled to a planned total depth of 7,000 feet. Drilling of the Calacho well is expected to take approximately 30 days. The Calacho well is programmed to test the hydrocarbon potential of the C7 and Une formations. The gross budget for drilling and testing of the well is approximately $4.5 million. The Rocamao No. 1 well is the second planned well in the drilling program on the block and is expected to be drilled to a planned total depth of 6,900 feet. Drilling of the Rocamao well is expected to take approximately 30 days. The Rocamao well is also programmed to test the hydrocarbon potential of the C7 and Une formations. The gross budget for drilling and testing the Rocamao well is approximately $5.1 million. Under the terms of the original farm-in agreement, Santa Maria was to pay 50% of the costs of the two wells in exchange for an income production participation of 35%. Under a new arrangement agreed to in the spring of 2012, Santa Maria will pay a maximum of $3,875,000 towards the costs of the two wells, of which, $2,000,000 has been paid. Following the completion of the wells and payment of the remaining $1,875,000, Santa Maria will then have the option to: a) waive any right to an income production participation going forward and have no further financial obligations; or b) retain a 24.75% income production participation in the block by reimbursing Omega Energy Colombia for the difference between the costs of the two wells and the amounts already contributed to Omega prior to exercising the option.

Santa Maria Petroleum Inc. announced operating results for the month and quarter ended September 30, 2012. For the month, the company's the Flami-1 well in Block 27, Colombia reported a total gross production of 23,342 bbls, Santa Maria's share was 10,568 bbls. Average bopd was 778. For the quarter, the company's the Flami-1 well in Block 27, Colombia reported a total gross production of 40,872 bbls, Santa Maria's share was 18,505 bbls. Average bopd was 817. For the quarter, the company's the Canaguay well in the Canaguaro block reported a total gross production of 13,321 bbls, Santa Maria's share was 3,330 bbls. Average bopd was 277.

Santa Maria Petroleum Inc. announced that it has commenced extended test production of the Flami-1 well at the Llanos 27 block. The Flami-1 well is the second well drilled by NCT Energy Group C.A. Colombia, as official Operator of the Llanos 27 Block, along with Santa Maria and its partners. The well commenced drilling on April 23, 2012 and was drilled to a total depth of 9,300 feet on May 31, 2012. Initial testing operations occurred between June 21 and July 5, 2012. At that time the well was suspended while Santa Maria and its partners awaited regulatory approval to put the well back on production. Approval was received on August 17 and production commenced on August 18, 2012. Santa Maria and its partners have brought the well back on at initial fluid production rates of 1,700 BOFD. The intention is to gradually increase drawdown rate while closely monitoring watercut in order to determine optimal production conditions. At present the well has been producing at an 18% watercut, producing approximately 1,400 BOPD.