Baby All, previously known for advancing key IP/technology for a novel infant medicine dispenser, announced today that, pursuant to the May 11 reverse merger (and effective as of May 21), the company has effectively changed names to Santa Fe Petroleum, Inc.
This marks a new beginning for the company as a strategic focus on hydrocarbon development becomes the central and sole priority for BABA's operating model. The primary target for operations are undeveloped oil and gas that may be in a trend of known, producing formations, something which yields opportunities for untapped, virgin reservoir pressures and the associated commercial potential thereof.
Just the momentum spike that Santa Fe needs to truly capitalize on a shrewdly assembled portfolio of some 2k mineral interest lease acres, reinforced by an aggressive leasing strategy aimed at expanding the acreage footprint. Santa Fe is currently in negotiations to acquire interests/leasing on several thousand more acres of prime hydrocarbon potential for this year and on into 2013.
The FINRA processing for the name change and ticker is proceeding apace as plans are finalized for the completion of the original test well on the current project (should be ready in the next few months at which time the company will issue another report). Additional near-term drilling targets with ample cash flow potential are also being organized with the intent of increasing overall profitability.
The Santa Fe Spindletop Field in Hopkins County, Texas (original wildcat well, Hopkins Spindletop #1, was spud in late 2002 and produced on average, some 440 barrels a day, the maximum allowed by the State of Texas despite the ability to produce more) is a perfect example of the company's strategy, resting as it does between two fields, both with considerable production and some wells that have been producing since back in 1980. Initial reserve estimates from the discovery well and other analyses places the recoverable resource at around 600k barrels of oil and 1.5B cubic feet of gas, given 80-acre spacing.
Targeting the Upper Jurassic Smackover formation, Santa Fe Spindletop vectors, including offset field targets, indicate a considerable concentration of natural gas with the Smackover oil. This excellent position is a result of the company's strict guidelines, which mandate that target selection for potential drilling fall within the same set fundamental parameters that have guided the company's executive team to rousing success over the last 15 years.
By focusing on undeveloped oil and gas in either unknown formations or existing trends where the probability of success is increased and employing the most rigorous benefit analysis/observation methodologies possible, Santa Fe has earned an impressive track record, with a better than 75% success rate for drilling/completion thus far. This strategy has served the company very well indeed and Santa Fe will continue to employ similar logic when following their aggressive acquisition campaign forward, using the same carefully engineered methods to ascertain which potential targets have the highest possible probability of return on investment.
Santa Fe takes an extremely hands-on, granular approach to management, seeing to every aspect of operations from leasing the mineral interests through to production, even handling things like gas line engineering/installation and the accounting/production of shareholder revenue checks. It is this meticulous attention to detail that has made the company so light on its feet and able to punch over its weight in the sector and this infusion of momentum will likely super-charge the underlying process, leading to even greater results from operations.
Exceptionally well timed move really, oil is up for the second day in a row as the Institute for Supply Management's non-manufacturing businesses index came in above analysts' expectations at 53.7 for May (up from 53.5 last month), easing fears of a slowing recovery and accentuating an escalating situation in the Middle East as Iraqi PM Maliki is pressured to step down amid a string of recent bombings and hostilities (further disruption of global supply chain and resultant pricing shifts will be closely watched by industry operators).
For more information on Santa Fe Petroleum, please visit the company's website at: www.SantaFePetroleum.com
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