Petrolifera Encounters Hydrocarbons at Colombian Well

The Brillante SE-1X well in Petrolifera's 100% owned Sierra Nevada Block, Colombia, has encountered indicated hydrocarbon-bearing zones.

The well was spudded on February 16, 2010, has been drilled without incident and reached the base of the primary objective section in the Cienaga de Oro ("CDO") Formation on March 18, 2010, five days ahead of schedule. Intermediate logs were run on March 19, 2010 and March 20, 2010.

An initial interpretation by a qualified third party evaluator of logs, mud log shows and MDT pressure gradient data through the primary objective section in the CDO Formation, indicated that hydrocarbon-bearing sandstones were found over two main intervals in the well. The expected product is natural gas and natural gas liquids.

This preliminary interpretation concluded that the upper interval contains 184 feet of calculated gross pay and 158.5 feet of calculated net pay, while a deeper series of sandstones contains 85 feet of calculated gross pay and 56 feet of calculated net pay. Intermediate 9 5/8th inch casing will be run across this zone and once this procedure is completed, drilling will resume with a view to evaluating deeper objectives, including possibly for crude oil.

The projected total depth of the well is 9,500 feet. Testing equipment is being mobilized to the location and testing is expected to begin in approximately three weeks, after the well has reached total depth. There is no guarantee at this stage as to the quality of reservoir permeability and whether or not the formation can flow commercial rates of hydrocarbons. This can only be evaluated through testing.