Petrolifera Secures Drilling Rig for Colombia, Peru Operations

Petrolifera Petroleum Limited has signed a letter of intent with Petrex S.A  whereby Petrex has agreed to provide a heli-transportable drilling rig for a 24-month period from commencement of well operations in Colombia with an option for a further 12-month period.

The formal contract is currently being finalized and rig mobilization is expected to begin shortly, with a view to
being on location at the La Pinta prospect, situated within the Sierra Nevada I License in the Lower Magdalena Basin onshore Colombia, on or before September 30, 2008. It is anticipated it will take 75 to 90 days to drill the
La Pinta well. Thereafter, Petrolifera plans to drill the Brillante prospect on the same license.

After completion of the initial two well drilling program in Colombia, Petrolifera anticipates it will mobilize the rig to Peru for the drilling of the company's first Peruvian exploratory well, currently anticipated to be drilled on Block 107 in the Ucayali Basin onshore Peru.