Petrolifera Confirms RN.PM a-1012 is a Significant Oil Well

Petrolifera Petroleum confirmed, following the initiation of testing procedures, that the RN.PM a-1012 well drilled on the Puesto Morales/Rinconada Concession in the Neuquen Basin, Argentina is a significant oil well.

Testing was commenced at approximately 10:00 AM local time on August 22, 2006 and continued until 9:00 PM local time when the well was shut in overnight. The well flowed at a calculated rate of approximately 2,850 bbl/d of light gravity crude oil from a thick Sierras Blancas sandstone reservoir with no water through an 18 millimeter (approximately 3/4 inch) choke after a brief cleanup period. Recorded pressures appear similar to those encountered in the original 1002 discovery well. Testing operations are continuing and the produced oil is flowing to an onsite storage tank for delivery to market.

The company can also advise that drilling operations are well underway at the RN.PM a-1013 well. This well commenced drilling operations on August 15, 2006.