Petrolifera Reports Another Flowing Oil Well at Puesto Morales

Petrolifera Petroleum Limited announced that the 100 percent owned RN. PM. a-1016 well on its Puesto Morales Block in the 'Neuquen Basin, Rio Negro Province, Argentina has been tested and it is another flowing oil well.

After a short period of swabbing, the well commenced flowing light gravity crude oil from the Sierras Blancas Formation at the rate of 460 bbl/d. The well will shortly be placed onstream and add to current production and sales.

In addition, based on drilling results and log analysis, the well also has what appears to be an excellent natural gas bearing Loma Montosa Zone 9. This further confirms the aerial extent of this natural gas bearing zone, which will be developed by Petrolifera for commercial exploitation during the second and third quarters of 2007.

The RN. PM. a-1021 well, situated south of the 1003 original discovery well in this northern portion of Puesto Morales, is drilling ahead.

Petrolifera Petroleum Limited is a Calgary-based oil and natural gas company active in Argentina, Peru and Colombia in South America. The company's production of light gravity crude oil in Argentina has grown quickly, with fifteen consecutive drilling successes on its Puesto Morales/Rinconada Concession in Argentina. Production of crude oil has averaged over 11,000 bbl/d during the early portion of 2007. This is expected to increase during the year as new drilling is undertaken, a waterflood or pressure maintenance project is completed at Puesto Morales and gas conservation measures are also introduced.