Petrolifera Says Results from Well 1010 Indicate Multi-Zone Oil Discovery

Petrolifera Petroleum Limited reports that the 100 percent-owned RN.PM.x-1010 well on the company's Puesto Morales/Rinconada concession in the Neuquen Basin, Argentina has been drilled to total depth, logged and cased as an indicated multi-zone Quintuco, Sierras Blancas and Punta Rosada oil discovery. The 1010 well is located approximately one-half mile west of the prolific 1003 oil well, which was the second well drilled and the first well tested by Petrolifera in its 2005 evaluation program.

The drilling rig will be released shortly and moved to the 1011 location, which is about one-half mile east of the 1003 well. This well will be spudded with a view to completing it by around year end. The service rig which was being utilized to test the 1002 well will now move to the 1010 well and testing procedures will commence in the next several days.

Testing of the 1002 well is now complete; a test of a zone in the Quintuco formation up hole from the prolific Sierras Blancas formation, which as announced on December 16, 2005 flowed oil at calculated extrapolated rates of 2,340 bbl/d through a 3/4 inch choke, did recover crude oil on test and, as expected and as is normal for the Quintuco, will require a frac to be able to achieve acceptable flow rates. As the tested production potential of the Sierras Blancas is so prolific in this well, this procedure will not be carried out in the 1002 well but will await the drilling of shallower wells solely designed to evaluate the Quintuco formation, which will occur in 2006.

Test results from 1010 will be released as soon as available, as will the results of the 1011 well upon completion, which is likely to occur around the beginning of January, 2006.