Petrolifera Requests Permission to Explore Rinconada

Canada's Petrolifera Petroleum (TSX: PDP) has requested authorization from La Pampa province's mining department in Argentina to begin an exploration program on the Rinconada property, the provincial government said in a statement.

Petrolifera holds the Rinconada and adjacent site Puesto Morales, which together form a single concession extending into the neighboring Rio Negro province.

Seismic exploration company Western Geco is due to start on October 10 a topographical study in order to start acquiring data by month-end. The program would provide 252 sq km of new subsurface data, allowing for future drilling that would aim to confirm existing reserves.

"Great things are expected of the Rinconada exploration as the Canadian company has obtained important results in neighboring Puesto Morales," according to the statement.

The proposed drilling program would involve 22 new wells and the construction of a 25km pipeline with capacity of 2,100m3/d, according to the statement.

Petrolifera also plans to construct infrastructure for low-pressure injection as well as a US$10mn high-pressure line to transport some 700,000m3/d to Transportadora Gas del Sur's (TGS) pipeline by September 2007.

The company has discovered on the concession proved and probable reserves of some 21.1Mb of oil and 23Bf3 (651Mm3) of gas, the statement quoted consulting firm DeGolyer and MacNaughton as saying.

Petrolifera has oil and gas exploration operations in Argentina and Peru.

Visit BNamericas to access our real-time news reports, 7-year archive, Fact File company database, and latest research reports. Click here for a Free two week trial to our Latin America Oil & Gas information service.