Santa Fe Petroleum Inc. (OTCBB: SFPI) has purchased additional oil and gas leases in North Central Texas with plans for additional drilling.
Santa Fe completed the purchase of multiple leases totaling 1,628 in the area of its test well in North Central Texas. This purchase, plus the existing 76 acres that Santa Fe already owned, brings the total of the company's holdings to 1,704 acres for future drilling.
Santa Fe expects to plan for 12 to 20 drilling locations with this added acreage depending on the number of Marble Falls and Barnett shale oil wells that are drilled respectively.
The Baker Hughes and Weatherford Labs test well reserve study estimates an average barrels of oil in place of over 18,000 barrels per acre in the Barnett shale formation alone. The results estimated a 20% recovery rate, which equates to 3,590 barrels of oil recoverable per acre, according to the release.
Santa Fe Petroleum Inc. is an exploration stage oil and gas company based in Plano, Texas.