Petrolifera Updates Operations in Argentina, Colombia and Peru

Petrolifera Petroleum Limited had a productive if somewhat challenging year in 2007. The company drilled at total of 47 wells, all on its Puesto Morales/Rinconada Concession in the Neuquen Basin, Argentina, during the year. This drilling resulted in 33 oil wells, two natural gas wells, three water injector wells, two dry holes, four non-productive or suspended wells and three wells were being completed at year end.

At Puesto Morales, a total of 35 wells were drilled, resulting in 25 oil wells, two natural gas wells, three water injector wells, two dry holes, one suspended well and two wells were on completion at year end. At Rinconada, a total of twelve wells were drilled, resulting in eight oil wells, three non-productive or suspended wells and one well was being completed at year end. This brings to over 60 the number of wells drilled on the Concession since first drilling was initiated in late 2005.

Petrolifera has already announced a 69 well, $76 million capital budget for Argentina during 2008. This planned program will include extensive drilling at Puesto Morales/Rinconada, seismic and drilling on Vaca Mahuida, drilling on the Gobernador Ayala II concession and 3D seismic and drilling on the recently confirmed Puesto Guevara Concession in Rio Negro Province, Argentina.

Plans are advancing for early drilling in Colombia. Petrolifera has identified three prospective drillable prospects on its Sierra Nevada I License in the Lower Magdalena Basin. Discussions to secure a drilling rig for a July/August commencement of activities are continuing. A seismic program is also anticipated in 2008 on the company's Turpial Block in the Upper Magdalena Basin.

An initial 2008 capital budget of $8 million has been established for Colombia; this may be expanded depending upon results and as mentioned, developments in Argentina, although regardless the company has the wherewithal to expand its Colombian budget as warranted by opportunities that develop.

Petrolifera's 2008 Peru capital budget has been established at $56 million, to cover the cost of extensive seismic programs on both Ucayali Block 107 and on Maranon Block 106 and for the drilling of the company's first well on Block 107. Petrolifera's seismic program on Block 107 is proceeding very favorably, with 62 percent of lines cut at year-end 2007; 60 percent of shot holes have been drilled and 24 percent of lines have been shot. Early indications from received data are considered excellent and the company is proceeding with preparation of its Environmental Impact Assessment applications for a number of drilling locations. The data will be received, interpreted and reviewed for selection of the preferred prospects, which are anticipated to have considerable potential.