Petrolifera Reestablishes Stake in Salinas Grande I

Petrolifera Petroleum Limited has reestablished a ground-floor 50% working interest in the Salinas Grande I block in the Neuquen Basin onshore La Pampa Province, Argentina.

The interest was secured through the execution of a joint venture agreement ("JOA" or "UTE") with three other parties who had secured the block after the previous award to Petrolifera had been disqualified. The 1.1-million-acre block is situated north and northeast of Petrolifera's Rinconada Block which comprises part of the Puesto Morales/Rinconada Concession. Plans will now be formulated for a 2007 evaluation program.

Separately at Puesto Morales, Petrolifera said that Quintana Rig No.6 is on location and preparing to spud the RN.PM a-1021 well, located south of the 1003 discovery well drilled in 2005. Testing of the 1016 well should also commence shortly.

Petrolifera Petroleum Limited 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 awards of three new concession agreements.