Exhibit 99.1
                  [LOGO]
SANTA FE ENERGY RESOURCES, INC.               news RELEASE
1616 South Voss, Suite 1000
Houston, Texas 77057                          Contact:          Kathy E. Hager
Phone: (713) 507-5000                                           (713) 507-5315


                                 SANTA FE ENERGY
                            ANNOUNCES STOCK PURCHASE

Houston, Texas -- December 15, 1997

Santa Fe Energy Resources (NYSE:SFR) today announced that the Board of Directors
has  authorized  the  repurchase  of up to $50 million of the  Company's  common
stock.  Based on the current market value of the common stock,  this would allow
the  Company to  repurchase  about 4 percent of the  approximately  103  million
shares outstanding.

"We believe that our common stock is  undervalued  given the Company's near term
production growth and the substantial long term growth potential  represented by
our exploration program," said James L. Payne, Chairman, and CEO of the Company.
He continued,  "The stock repurchase is an attractive  investment and is a means
of building shareholder value."

The Board of Directors  also approved a capital  expenditure  budget for 1998 of
approximately  $277 million.  The Company  believes its operating  cash flow and
existing  credit  facility  will be  sufficient  to meet  capital and  operating
requirements  in 1998 and any share  repurchases.  The  purchases are to be made
from time to time in the open market or directly from shareholders at prevailing
market prices.  Shares repurchased will be available for use under the Company's
employee  benefit  and stock  option  plans to  minimize  dilution  to  existing
shareholders.

Santa  Fe  Energy  Resources  is an  independent  oil  and gas  exploration  and
development  company with  headquarters in Houston,  Texas. It has production in
the  United  States,   Argentina  and  Indonesia  with  additional   exploration
activities in other regions of the world.  Its common stock is traded on the New
York Stock Exchange under the symbol SFR.

This news release may contain  forward-looking  statements within the meaning of
the Securities  Litigation Reform Act. These projections and statements  reflect
the  company's  current  views  with  respect  to future  events  and  financial
performance.  Actual results could differ  materially  from those projected as a
result of certain  factors.  A  discussion  of these  factors is included in the
Company's  periodic  reports filed with the Securities  and Exchange  Commission
including its Annual Report on Form 10-K for the year ended December 31, 1996.