Santa Fe Petroleum, Inc. announced it has executed the joint operating agreement with it's affiliate operator, TexTron Southwest, Inc. The JOA is the definitive agreement for conducting well operations with a licensed operator in the State of Texas. As a result of JOA being finalized, the company will commence the fracing process of its central Texas test well. As previously disclosed Santa Fe drilled the test well, logged and took core samples from the Barnett formation and shut-in the well pending test results from Baker Hughes and Weatherford Labs (Testing Companies).

With promising results from the Testing Companies, the company proceeded with its funding efforts. Now that the company has secured the necessary funding, the company will begin the process of acid fracing and completing the test well for production. This process includes the acid fracing and a slick-water sand process, which will fracture the formation to create permeability channels and thus easing the flow of oil to the wellbore.

This completion method is unique for Barnet Shale wells and has the potential to generate an estimated production of 20 or more barrels of oil per day. This is prior to enhancing the pressure in the formation, which could potentially increase daily production to an estimated 75 barrels of oil per day. The company is currently revising its private placement memorandum at an increased offering amount in order to facilitate its business plan in and around the Test Well.