Petrolifera to Commence Reentry of La Pinta Well

Petrolifera Petroleum Limited announced that after being transported from the U.S.A. to Colombia, the snubbing unit to be used for the reentry of the La Pinta 1X well on the company's 100 percent-owned Sierra Nevada License in the Lower Magdalena Basin, onshore Colombia, has been released from Colombian customs, has arrived on location and is now rigging up.

The work program from the snubbing unit is to reenter the La Pinta 1X well bore, clean out the blockage in the tubing string situated in the well bore and then to attempt a completion of the well in the Cienaga de Oro Formation ("CDO"), at a depth of approximately 10,700 feet. If, as anticipated, the La Pinta 1X remediation program is successful, it is further anticipated Petrolifera would then likely proceed with a long-term production test, prior to the preparation and submission of a commercial development program to ANH, the Colombian state agency which administers crude oil and natural gas activity in the country.

It is anticipated that it will take approximately one week to rig up the snubbing unit and to prepare the well for reentry. It is expected it could take from between two weeks and six weeks to complete the planned snubbing operations. After the snubbing operations, it may be necessary for Petrolifera to contract a service rig to complete and then to production test the well. Including testing, the project is anticipated to cost approximately US$5 million to US$6 million. If successful, the project could result in near term production and sales volumes from the La Pinta 1X well. If for some reason the test of the CDO is not successful, there are several shallower formations of interest in the well bore that may be evaluated by testing.

The La Pinta 1X well was spudded on January 23, 2009 and drilling was completed on May 6, 2009. Completion operations were commenced immediately thereafter and the well was classified as suspended on July 27, 2009, after testing light gravity 44 degree API crude oil from a twenty-five foot perforated interval of the top of the CDO, at instantaneous measured rates of up to 776 bbl/d, with limited associated natural gas and no water, before the flow of crude oil ceased. A subsequent wireline indicated a sand plug had formed in the tubing string, which likely accounted for the cessation of the flow of crude oil from the well. Readers are cautioned that instantaneous rates are not reflective of sustainable production rates and if the La Pinta 1X well is remediated, such that commercial production is established, the resultant production rates may differ materially from the recorded instantaneous flow rate reflected herein.

The company also anticipates the spudding of the Brillante SE 1X exploratory well in mid-February 2010. This well will also be located on the 100-percent owned Sierra Nevada License in the Lower Magdalena Basin, onshore Colombia. The target formation of the Brillante well is also the CDO, at a depth of approximately 9,500 feet, although overpressured conditions such as were encountered in the La Pinta 1X well are not anticipated. The project is primarily considered prospective for natural gas and possibly associated natural gas liquids. Petrolifera anticipates it will take approximately 90 days to drill, complete and test the Brillante well and results will be released when available. The company believes that the drilling of the Brillante well, in addition to a planned 3D acquisition seismic program over the La Pinta area in the second quarter of 2010, will satisfy the second phase exploration commitments related to the Sierra Nevada License.