Petrolifera confirms activation of Puesto Morales North waterflood; Provides salient details



    CALGARY, Jan. 15 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX)
confirmed today that its waterflood pressure maintenance project at Puesto
Morales North in the Neuquén Basin, Rio Negro Province, onshore Argentina
commenced continuous operations on January 11, 2008, following a period of
commissioning and line testing which started in late December, 2007.
    The purpose of the project is to enhance reservoir pressure in the
prolific and high quality Jurassic Sierras Blancas oil-bearing reservoir at
Puesto Morales. It is anticipated that there will be a period of approximately
six months of water injection before meaningful response will be discernible
in overall crude oil production levels and that it will take approximately
eighteen months from startup of injection to achieve optimum production
response, based on initial simulation studies of the reservoir. The high
quality reservoir, characterized by excellent porosities and significant
measured permeability, should facilitate excellent transmissibility of fluid
and the project is expected to have a material and favorable impact on the
ultimate recovery factor for the field.
    The first injection stage in the Sierras Blancas formation will occur in
2008 and is expected to reach a total water injection rate of 18,000 barrels
of water per day with approximately thirteen injector wells, including new
wells and conversions. Future waterflood developments and optimizations will
increase the injection rate to the capacity of 25,000 barrels of water per
day.
    The water injection plant is now operating with initial injection of
approximately 5,000 barrels of water per day in four wells, PMN-1025, PMN-1011
and PMN-1037 in the northern part of the field and PMN-1035 in the central
portion of the field. Over time, additional injectors will be tied back to the
plant to realize the final injection rate of approximately 25,000 barrels of
water per day. Fresh water is supplied to Petrolifera's water treatment plant,
situated in the northern portion of the field, through a six kilometer
ten-inch pipeline from facilities situated near the Casa de Piedra dam on the
Rio Colorado River, resulting in the reservoir or embalse in the region.
    Petrolifera's Puesto Morales water treatment plant filters the water with
a targeted efficiency exceeding 90 percent on particle sizes exceeding five
microns. Also, a target of 90 percent efficiency in oxygen removal is
anticipated.
    The activation of the water injection plant is a significant milestone
for Petrolifera. It was constructed against a backdrop of energy and equipment
shortages in Argentina and its completion is a credit to the company's
operational staff and external advisors and consultants. More importantly, it
is anticipated the waterflood will consequentially impact on Petrolifera's
light crude oil production in Argentina during 2008 and beyond.

    Petrolifera is a Calgary-based crude oil and natural gas exploration,
development and production company with activities in Argentina, Peru and
Colombia. The company has branch offices in Buenos Aires, Argentina; Bogota,
Colombia and Lima, Peru. Its common shares are listed for trading on the
Toronto Stock Exchange under the symbol PDP. There are presently 50.1 million
common shares outstanding (54.4 million fully-diluted). The company's growth
from a modest startup base in late 2005 when it went public has been organic,
through successful drilling programs in Argentina. Since that time the company
has expanded into both Colombia and Peru, and controls approximately
6.5 million net acres of exploration and production rights in these three
South American countries. Petrolifera operates with a very small head office
staff of three full-time professionals, two part-time individuals and solely
employs nationals in all of its foreign offices. The company prides itself on
its efficiency of operations, low finding and development and on stream costs,
low operating costs and its efficient use of capital.

    Forward-Looking Information

    This press release contains forward-looking information, included but not
limited to anticipated results of Petrolifera's waterflood pressure
maintenance project and its potential impact on future production levels. This
forward looking information is not based on historical facts but rather on
Management's expectations regarding the performance of the waterflood plant
and facilities and reservoir characteristics. Such forward looking information
reflects Management's current beliefs and assumptions and is based on
information currently available to Management. Forward looking information
involves significant known and unknown risks and uncertainties. A number of
factors could cause actual results to differ materially from the results
discussed in the forward looking information, including but not limited to,
risks associated with the oil and gas industry (e.g. operational risks in
development, exploration and production, delays or changes to plans with
respect to exploration or development projects or capital expenditures; the
uncertainty of reserve estimates; the uncertainty of estimates and projections
in relation to production, costs and expenses and health, safety and
environment risks), the risk of commodity price and foreign exchange rate
fluctuations, the uncertainty associated with negotiating with foreign
governments and third parties located in foreign jurisdictions and the risk
associated with international activity. Additional risks and uncertainties are
described in the company's Annual Information Form which is filed on SEDAR at
www.sedar.com. The company's ability to increase sales of crude oil and
natural gas is dependent upon sustained productivity of new and existing wells
and results of its water flood and water injection program. Although the
forward looking information contained herein is based upon assumptions which
Management believes to be reasonable, the company cannot assure investors that
actual results will be consistent with this forward looking information. This
forward looking information is made as of the date hereof and the company
assumes no obligation to update or revise this information to reflect new
events or circumstances, except as required by law. Because of the risks,
uncertainties and assumptions inherent in forward looking information,
prospective investors in the company's securities should not place undue
reliance on this forward looking information.





For further information:

For further information: Richard A Gusella, Executive Chairman,
Petrolifera Petroleum Limited, Phone: (403) 538-6202, Fax: (403) 538-6225,
inquiries@petrolifera.ca, www.petrolifera.ca

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PETROLIFERA PETROLEUM LIMITED

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