Petrolifera Petroleum announces new Sierras Blancas oil discovery at Puesto Morales, Argentina and provides operating update



    CALGARY, Dec. 3 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX)
announces today that the PMN 1038 well on the company's 100 percent-owned and
operated Puesto Morales Concession in the Neuquén Basin, Argentina has
recently tested light gravity crude oil at a rate of approximately 1,500 bbl/d
from the Sierras Blancas Formation.
    The results are important as the well is situated between the company's
Northern and Central lobes of the Puesto Morales Norte Field and indicates
continuity between the two accumulations. The well will be completed and tied
in shortly and it is anticipated the well will be produced initially at a rate
of between 500 bbl/d - 1,000 bbl/d.
    Four drilling rigs and four service rigs continue to operate for
Petrolifera on its Puesto Morales and Rinconada Blocks which comprise the
concession. Included in current drilling is the 1017 well, situated southeast
of the central lobe; this is the first deviated well to be drilled on the
concession using the Quintana No. 13 rig, which was imported into Argentina
and has greater drilling depth capacity. This rig has been used to drill a
number of water injection wells during its break-in period. The company's
water treatment, water injection and water handling facilities are scheduled
for a December 2007 startup, which should increasingly impact on overall
production levels during the ensuing 18 months, as the waterflood pressure
maintenance scheme becomes operative and effective.
    Separately, Petrolifera advises that a commissioning ceremony was
recently held for the company's high pressure natural gas pipeline which runs
from the Puesto Morales Norte field to the Medanito area. It is anticipated
the pipeline will initially handle approximately 10 mmcf/d of natural gas,
including associated gas from the surrounding oil field and some
non-associated natural gas from the Loma Montosa and Sierra Blancas
Formations. The rated capacity of the new pipeline with in-place compression
is 35 mmcf/d, which would allow for continuing sales expansion.
    Recently, Petrolifera tested 2.3 mmcf/d of natural gas and 20 bbl/d of
condensate through a 14 mm choke from its PMOx-1001 well, located on the
western border of the concession. It appears probable this well will be tied
into the new high pressure pipeline for immediate sale to available industrial
markets. Additionally, the company recently tested over 1 mmcf/d from a basal
Loma Montosa zone in the 1007 well, located within the Puesto Morales Sur
Field. Crude oil was also tested from the Loma Montosa Zone 10 in this well
and following a frac, it is anticipated the well will be completed as a dual
zone producer and tied in to production facilities.
    In Peru, the company's 2D seismic program on Ucayali Block 107 is
proceeding favorably with encouraging preliminary results. The company is also
advancing discussions to secure a suitable heli-transportable drilling rig for
use in drilling a well or wells on Block 107 during the latter months of 2008
and into 2009. Drilling is also anticipated on Block 106 in the Maranon Basin
during 2009, following completion of the company's Environmental Impact
Assessment and shooting a 550 kilometer 2D seismic program in 2008.
    In Colombia, several drillable prospects have been defined on the Sierra
Nevada I license and plans are progressing to secure drilling rig commitments
for the second half of 2008. Petrolifera is pleased with the quality of
prospects it has generated in Colombia, including their associated reserve
potential.

    Petrolifera Petroleum Limited is a Calgary-based crude oil and natural
gas exploration and production company engaged in activity in Argentina, Peru
and Colombia. The company owns or controls in excess of 6.5 million acres of
petroleum and natural gas rights in sub-Andean basins in South America. As
disclosed in the company's recent Investor Presentation, which is posted on
its website at www.petrolifera.ca, production is expected to increase to a
targeted level of 14,500 boe/d by year end 2008, reflecting the impact of
development drilling, the waterflood at Puesto Morales, increased sales of
natural gas and the impact of the company's ongoing 69 well drilling program
in Argentina. No volume impact for drilling success in either Peru or Colombia
is factored into the company's production outlook.

    Forward Looking Statements

    This press release contains forward-looking information, including but
not limited to expectations with respect to production rates, flow rates and
productive capacity of certain wells, impact of the company's new water
treatment, water injection and water handling facilities and continued
exploration and drilling activities. This information is based on current
expectations that involve a number of risks and uncertainties, which could
cause actual results to differ from those anticipated. These risks include,
but are not limited to, risks associated with the oil and gas industry
(e.g. operational risks in development, exploration and production; delays or
changes in plans with respect to exploration or development projects or
capital expenditures; the uncertainty of reserve estimates and recoverability
thereof; the uncertainty of estimates and projections in relation to
production, costs and expenses and health, safety and environmental risks),
the risk of commodity price and foreign exchange rate fluctuations, the
uncertainty associated with negotiating with foreign governments and third
party contractors and risk associated with international activity. Although
Petrolifera believes that its expectations represented by this forward-looking
information are reasonable, there can be no assurance that such expectations
will prove to be correct. In particular, there can be no assurance that the
flow rates of newly drilled wells will result in stabilized production at
these levels. Due to 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 a
detailed description of the risks and uncertainties facing Petrolifera,
readers should refer to Petrolifera's Annual Information Form as filed at
www.sedar.com.





For further information:

For further information: R. A. Gusella, Executive Chairman, Petrolifera
Petroleum Limited, Phone: (403) 538-6201, Fax: (403) 538-6225,
inquiries@petrolifera.ca, www.petrolifera.ca

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PETROLIFERA PETROLEUM LIMITED

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