Santa Maria Petroleum Inc. Completes Testing of the Flami-1 Well

Santa Maria Petroleum Inc. (TSX VENTURE:SMQ) ("Santa Maria" or the "Company") is
pleased to announce that it has completed testing operations of the Flami-1 well
at the Llanos 27 Block and is now making an application to have the well put on
extended production test.


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 with the
Saxon 132 1,500 horsepower rig and was successfully drilled to a total depth of
9,300 feet on May 31, 2012. 


Well logs indicated an estimated 20 feet of potential gross oil pay in the
Mirador formation and 22 feet in the Une formation. Testing operations of both
the Une formation and Mirador formation have now concluded.


Une Formation Test 

On June 21, 2012, the Company announced a new oil discovery in the Une formation
of the Flami-1 well. Testing operations commenced on June 13, 2012 with the Une
formation being perforated at the 9,086-9,100 foot interval. 


Phase 1 of the test involved producing out the drilling control fluids and
cleaning the wellbore. Over a 60 hour period the well produced 1,514 BOPD of
15.5 degree API oil with an average watercut of 13%. Cumulative oil production
over those 60 hours was 3,786 barrels of oil. 


Following Phase 1 of the test the well was shut in to perform a 24 hour pressure
build-up test. During this time, the formation pressure was measured at 3,850
psi. 


Phase 2 of the test involved periodically stepping up the total fluid production
rate to observe watercut and overall fluid production. Cumulative production
over a 73 hour period was 5,496 barrels of oil and was produced in the following
stages:




1.  Stage 1: Over an initial period of 29 hours the well produced 1,403 BOPD
    (1,695 total over 29 hours) with an average watercut of 20%; 
2.  Stage 2: The drawdown rate was increased and over a period of 20 hours
    the well produced 1,832 BOPD (1,527 total over 20 hours) with a watercut
    of 12%; 
3.  Stage 3: The drawdown rate was increased and over a period of 15 hours
    the well produced 2,160 BOPD (1,350 total over 15 hours) with a watercut
    of 12%; 
4.  Stage 4: The drawdown rate was increased and over a period of 9 hours
    the well produced 2,464 BOPD (924 total over 9 hours) with a 12%
    watercut. 



These test results are preliminary and are not necessarily an indication of the
longer-term potential of the well. Additional tests will be performed once the
well can be placed on an extended test.


Mirador Formation Test 

Testing operations commenced on July 1, 2012 with the Mirador formation being
perforated at the 8,364-8,372 foot interval. Over a 48 hour test, the Mirador
formation produced a total of 510 barrels of oil, and 1,448 barrels of water.
The calculated average daily rate over the two days was 299 BOPD, and 899 BWPD
for a 75% watercut. 


Given the lower productivity and higher watercut of the Mirador formation, it
was decided to terminate testing of the Mirador formation and move towards an
application to place the Une formation of the well on extended production test.
The well will now be shut in while an application is made to the Ministry of
Mines and Energy in Colombia to put the well on an extended test. This
application approval is expected to take four to six weeks, at which time the
well can be put back on production and oil from the extended test sold to
market. 


Santa Maria is paying 50% of the total cost of the well and will earn 45.275% of
production before payout and 34.25% of production after payout under a private
participating interest agreement.


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 operational results in Colombia and receiving approval from the
Ministry of Mines and Energy in Colombia and the timing thereof. Although Santa
Maria believes that the expectations and assumptions on which the
forward-looking information are 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 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 information, whether as a result of new information,
future events or otherwise, unless so required by applicable securities laws.