Petrolifera Hits Pay in Puesto Morales/Rinconada

Petrolifera Petroleum Limited reported Monday that the RN.PM a-1012 well on its 100 percent-owned Puesto Morales/Rinconada concession in the Neuquén Basin onshore Argentina is an indicated crude oil discovery.

During drilling, the 1012 well, which is located approximately one-half mile west of the 1002 discovery well, penetrated a thick continuous hydrocarbon-bearing Sierras Blancas zone similar to that encountered in the 1002 well. Based on log analysis, the zone exhibits excellent porosity and the well is scheduled to be cased and will be tested and completed for production during the next several days. The well also encountered several hydrocarbon-bearing zones in the Loma Montosa or Quintuco Formation which will be evaluated at a later date.

The drilling rig will now be moved to the RN.PM a-1013 location, situated approximately one-half mile east of the 1002 discovery well.

Petrolifera Petroleum Limited is a public Canadian oil and natural gas exploration and production company based in Calgary, Alberta. It owns 100 percent of the productive Puesto Morales/Rinconada Concession in the Neuquén Basin onshore Argentina and plans to drill approximately twenty wells on the block prior to year end 2006. The company presently produces approximately 6,500-7,000 bbl/d of light crude oil, primarily from four wells on the concession. An extensive 3D seismic program over the remainder of the two blocks not presently covered with modern seismic is also planned prior to year end and permanent facilities including a new pipeline are presently under construction. Petrolifera also owns 100 percent and operates two licenses covering over five million acres onshore Peru. An extensive aeromagnetic and gravity survey over the entirety of Block 107 in the Ucayali Basin is scheduled to commence imminently.