Petrolifera Hits Pay at Puesto Morales

Petrolifera Petroleum Limited said that the Puesto Morales RN. PM. 1-1016 well is an indicated multi-zone crude oil discovery, based on drilling results and log analysis.

The well will be cased and then tested and completed in the near future, utilizing the completion rig already on site under contract to Petrolifera. This is fifteenth (15th) successive well which Petrolifera has cased for completion since it commenced its evaluation drilling program at Puesto Morales in late 2005. It took a few days longer to drill this well than would normally be the case or is expected by Petrolifera on a prospective basis, due to startup issues normally encountered with a new rig and crew.

The drilling rig will now be moved to the 1021 location situated southeast of the company's 1003 discovery in the northern portion of the Puesto Morales Block, which forms a portion of Petrolifera's concession in the Neuquen Basin, Argentina.

Petrolifera also announced that current scheduling indicates that the conversion of the service rig to a drilling rig, for use in drilling shallow wells on the Rinconada Block and to evaluate shallower prospects in other parts of Argentina is proceeding favorably and this rig should be available in the early part of the second quarter of 2007. Also, the third drilling rig, which was constructed in China, is now confirmed by the contractor as being on the high seas and it is anticipated to be available around mid-year 2007. This will mean Petrolifera will have three drilling rigs and one service rig under long term contract for its 2007 and 2008 drilling program.

Petrolifera will release its year end 2006 results and related information on March 20, 2007.

Petrolifera is a Canadian crude oil and natural gas exploration and production company. It is involved in exploration and production activities in Argentina and also holds two licensees covering over 5.2 million acres in Peru. The company also plans to conduct activity in Colombia and is waiting on formal award announcements for new concession agreements.