Petrolifera Commences More Drilling in Argentina

Petrolifera Petroleum Limited said that the Pride 350 drilling rig arrived on location on Monday of this week, adding that drilling operations are underway at the RN.PM a-1012 well--a westerly offset to the RN.PM-x 1002 discovery drilled in late-2005.

Petrolifera anticipates drilling approximately 20 wells on its Puesto Morales/Rinconada concession prior to the end of 2006. The primary objective of the wells will be to evaluate the oil-bearing potential of the Sierras Blancas and Punta Rosada Formations, although all wells will penetrate the Quintuco Formation, which is also hydrocarbon-bearing in the region. A second drilling rig is scheduled to arrive in October.

Petrolifera expects to report its second-quarter and first-half 2006 operating and financial results on August 8.

Petrolifera is a Calgary-based oil and natural gas exploration and production company. It owns 100 percent of the Puesto Morales/Rinconada concession in the Neuquén Basin onshore Argentina. The company also owns 100 percent of and operates over 5 million acres in two licenses in the Maranon and Ucayali Basins onshore Peru. The company is currently producing between 6,500 and 7,000 bbl/d of light crude oil, primarily flowing through restricted chokes from four wells situated on its concession in Argentina. Expanded permanent facilities, including a new pipeline, are presently under construction with a targeted startup around October, 2006.