Petrolifera Tests La Pinta Well in Colombia

Petrolifera announced the results of its recently tested La Pinta 1X well on its 100% owned Sierra Nevada License, situated in the Upper Magdalena Basin onshore Colombia.

A drill stem test ("DST") conducted over a four day period of a 30 foot gross pay interval (26 foot net pay interval) at subsurface depths between 7,804 feet - 7,834 feet in the Upper Porquero Formation flowed 47 degree light gravity crude oil, natural gas and as yet unmeasured associated natural gas liquids through a 32/64 inch choke with a wellhead pressure ("WHP") of 238 pounds per square inch ("psi"), at an average rate of 139 bbl/d and 739 Mcf/d, respectively, with no water. Only the upper portion of the Porquero reservoir drilled in the well was perforated. Bottom-hole pressure is estimated to be 5,700 psi, which will be confirmed when bottom-hole gauges in the well are retrieved at the end of an eleven-day pressure build-up period, which is presently underway. Current plans are to shut-in the well following the pressure build-up, while the feasibility of various productivity stimulation, appraisal and production methods is studied.

The Sierra Nevada License is also the location of the recently announced successful testing of the Brillante SE-1X well, which tested the Cienaga de Oro Formation ("CDO") from 3,138 feet - 3,312 feet (105.5 feet of net pay) and flowed at a measured rate of 8.4 MMcf/d of dry natural gas and no water through a 48/64th inch choke, with 570 psi WHP. Calculated absolute open flow in the Brillante SE-1X well was 18 MMcf/d of dry natural gas.

Readers should be cautioned that measured flow rates and calculated open flow rates may not be indicative of stabilized production rates for the La Pinta 1X or Brillante SE-1X wells. Also, further evaluation, testing and appraisal of the La Pinta 1X well may be required before an assessment of commerciality can be made and further long term testing of the Brillante SE-1X well is required.

Petrolifera has the right to appraise its oil and gas rights in Colombia and, upon application and with approval from the regulatory authorities, may have a right to produce same on a long term test for a period established in consultation with such authorities. Petrolifera has not yet determined whether it will make an application for a long term test of the Upper Porquero Formation or whether it will receive approval should an application be submitted. Beyond the term of any long term test, the right to produce reserves is contingent on the establishment of commerciality.