Petrolifera Petroleum Makes Fourth Discovery in Argentia

Petrolifera Petroleum says that its 100-percent owned RN.PM.x-1002 well, the first well drilled in its 2005 drilling program on the Puesto Morales/Rinconada concession in the Neuquen Basin, Argentina, is a crude oil discovery. This is the fourth successive discovery and the third flowing oil well thus far in the program.

On test through a restrictive one-quarter inch choke, crude oil from the Sierras Blancas Formation flowed at rates between 700 bbl/d - 725 bbl/d from the well with flowing tubing pressure of 580 psi. As the oil contained solution gas, testing has been suspended for a brief period until a separator is transported to the location and then will continue later today using chokes of increasing size to establish additional flow characteristics and pressures. The detailed results will be reported to shareholders and investors once the testing is completed.

The 1010 well, situated approximately one half mile west of the 1003 discovery well, has been spudded and should take about one week to drill. As a result, to keep the service rig in close proximity to the 1010 well and to be able to test it immediately upon completion of drilling, Petrolifera will likely proceed to test two up hole zones in the Quintuco Formation which were indicated to be hydrocarbon bearing during the drilling and logging of the 1002 well.