Santa Maria Petroleum to Commence Testing at Flami Well

Brownstone Energy Inc. has received the following operational update for its Flami-1 well, Llanos Block 27, Colombia.

Santa Maria Petroleum Inc. (formerly Quetzal Energy Ltd.) has advised that testing of the Flami-1 well at the Llanos 27 Block will begin shortly.

The Flami-1 well commenced drilling on April 23, 2012. The well 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 indicate an estimated 20 feet of potential gross oil pay in the Mirador formation and 22 feet in the Une formation. Completion and testing operations will begin with the Une formation with the Mirador to follow. Testing of the potential zones is expected to take approximately 3 weeks.

Brownstone is paying 50% of the gross amount and will earn 45.275% of production before payout and 34.25% of production after payout under a private participating interest agreement.


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