Petrolifera announces test results at Puesto Morales 1061 well in Argentina

    CALGARY, Aug. 9 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX) is
pleased to announce test results for its RN.PM a-1061 well on the central lobe
of the Puesto Morales North field in the Neuquén Basin, Argentina.
    On test, the well flowed 35 degrees API crude oil at a rate of
1,643 bbl/d through a 50 millimeter choke and at a rate of 1,490 bbl/d on an
18 millimeter choke, both with no water, from a lower set of perforations in
Sierras Blancas zone approximately 17 meters thick, based on log analysis. The
company plans further testing of the zone through an upper set of
perforations. The outcome of the well is expected to impact the overall aerial
extent and reserves associated with the central lobe.
    It is anticipated the well will be placed onstream as a flowing well with
an initial rate of approximately 1,000 bbl/d, increasing current oil
production to over 8,000 bbl/d. The company is presently drilling three wells,
two offsetting the prolific 1027 well on the northern lobe of Puesto Morales,
and one on the Rinconada Block (1006). Also, the 1033 well on the northern
lobe remains to be tested which has been cased as an indicated Sierra Blancas
oil well with extended pay of approximately 12 meters thick.

    Petrolifera is a Calgary-based crude oil and natural gas company active
in Argentina, Colombia and Peru. The company expects to immediately start its
seismic program on its 3 million acre Ucayal Block 107, upon formal receipt of
approval of its Environmental Impact Assessment study. Seismic will also be
underway shortly on its Gobernador Ayala Block in Argentina. Seismic on the
Vaca Mahuida Block in Argentina will commence in early 2008. Also, up to three
additional drilling rigs and two additional service rigs are being considered
for use in Argentina later this year.
    Drilling in Peru and Colombia is anticipated in 2008 following
interpretation of planned seismic programs.

    This press release contains forward-looking statements, including but not
limited to future drilling plans, anticipated capital expenditures, forecast
production, anticipated reserve additions and estimated flow rates and levels
of water incursions. These statements are based on current expectations that
involve a number of risks and uncertainties, which could cause actual results
to differ materially 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; 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 risk associated with international activity. Additional risks
and uncertainties are described in the company's Annual Information Form which
is filed on SEDAR at
    The company's ability to complete its capital program and potentially
increase production volumes and reserves is dependent on access to services,
drilling rigs and equipment. Similarly, the company's ability to increase
sales of oil and natural gas is dependent on sustained productivity of new and
existing wells, maintenance (or reduction) of water cuts and completion of
certain infrastructure and transportation systems that are currently under
construction. There can be no assurance that the flow rates of newly drilled
wells will result in stabilized production at these levels or that the
company's new or existing high productivity wells will not incur higher water
cuts than that reported herein or reductions in reservoir pressures, resulting
in a decision to further curtail production pending implementation of the
proposed pressure maintenance program or other remedial measures. Due to the
risks, uncertainties and assumptions inherent in forward-looking statements,
prospective investors in the company's securities should not place undue
reliance on these forward-looking statements. Forward looking statements
contained in this press release are made as of the date hereof and are subject
to change. The company assumes no obligation to revise or update forward
looking statements to reflect new circumstances, except as required by law.

    A barrel of oil equivalent (boe), derived by converting gas to oil in the
ratio of six thousand cubic feet of gas to one barrel of oil may be
misleading, particularly if used in isolation. A boe conversion is based on an
energy equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead.

For further information:

For further information: Richard A Gusella, Executive Chairman,
Petrolifera Petroleum Limited, Phone: (403) 538-6202, Fax: (403) 538-6225,,

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