Petrolifera Says Puesto Morales Well a Dual Zone Oil Discovery

Petrolifera Petroleum reports that well logs have been run on the RN.Pm.a-1014 well on the northern portion of its Puesto Morales/Rinconada Concession in the Neuquen Basin onshore Argentina. Based on logs and drilling results, the well is being cased as an indicated dual zone Sierras Blancas and Punta Rosada oil well. The well exhibits reservoir characteristics similar in nature to the 1003 and 1011 offsets which were drilled previously. This is the ninth successive Sierras Blancas or dual zone Sierras Blancas/Punta Rosada light gravity crude oil well drilled by Petrolifera on the block.

Once casing has been run and cemented in, the drilling rig will move approximately two miles east to drill the 1019 location. The service rig which has completed operations at the 1015 well will then be moved to the 1014 well to conduct testing operations.

Current production at Puesto Morales exceeded 11,000 bbl/d on September 30, 2006, prior to any production from the new discovery. The 1015 well has flowed at rates approaching 1,650 bbl/d since the initial tests were reported and excellent production rates approaching 3,000 bbl/d have been recorded at the 1013 well; both wells are flowing through restricted chokes and appear to be excellent wells. On occasion production from certain older wells is restricted to enable a better flow rate determination from new wells, so the full productive capacity of the nine discoveries is not necessarily being realized, pending completion of permanent facilities.