San Telmo Makes Discovery at Teepee Creek

San Telmo Energy reports that its 6-3 Teepee Creek well in Canada has been completed as a New Pool oil well. The 6-3 well, the second well in its Teepee Creek program encountered both oil and gas pay from multiple zones. Due to limited storage capacity, completion and testing operations were restricted to production of approximately 500bbls of oil and 137,000 cubic feet of gas. Stabilized production is anticipated to range between 100-150bbls of oil per day. Operations are currently underway to construct oil handling and gas conservation facilities onsite.

San Telmo's 6-3 well immediately offsets the gas discovery at the original 4-10 Teepee Creek well, which tested at a stabilized flow rate of 1.3mmcfd (217 boe/d) on a 3/8"choke. Pipeline construction for the 4-10 and 6-3 wells is in progress and expected to be complete and production on stream shortly. San Telmo Energy has a 100% working interest in the Teepee Creek project area.

San Telmo feels this new oil pool discovery represents a large development opportunity for the Company in the Teepee Creek area because of the Company's strategic land position over this play. The Company is putting the plans in place to drill more wells at Teepee Creek this season.