Trefoil's First Well in Puesto Rojas Encounters Oil

Trefoil's first exploration well in Puesto Rojas, drilled to a final depth of 2,310 mts. (7,580 ft.), tested an initial production of 150 BOPD of 22 degree API gravity.

Trefoil acquired a 100% interest in the Puesto Rojas license, covering 190 Km2 (47,000 acres) in February 2006. After acquiring, processing and interpreting 120 Km2 of 3D seismic, several drilling prospects were identified. The results of this first exploration well, which almost doubled the license’s production, are encouraging and provide for step-out and confirmation locations to be drilled within the same structure in the future.

The Company is currently drilling well PR-1001 in the second prospect identified in the Puesto Rojas 3D seismic. Results from this well are expected in September.

The discoveries in Puesto Pozo Cercado in 2006 and in Atamisqui and Puesto Rojas in 2007 confirmed the potential of these licenses providing for an extensive development drilling portfolio, which can be further increased by the exploration planned for Northern Atamisqui and Atuel Norte in 2008. Based on this, Trefoil has decided to step-up its drilling plan. To that end a second drilling rig, Nabor’s NB-834, was contracted and shall start drilling during the current month of August.

The Company has obtained the environmental permits to drill eight wells in the Chañares Herrados and PPC licenses and a further five wells in Atamisqui.