Petrolifera Completes Credit Facility with Standard Bank PLC

    CALGARY, Sept. 5 /CNW/ - Petrolifera Petroleum Limited ("Petrolifera" or
the "Company") announced today that the Company has established and closed a
three-year US$100 million revolving credit facility, to be provided by
Standard Bank PLC ("Bank"). This reserve based facility will have an initial
availability and total commitment of US$60 million and will bear interest at
LIBOR plus 3.75%. The facility provides the Company with access to additional
capital, if and when required, as well as increased financial flexibility. The
Bank reserves the right to syndicate the facility.
    The level of committed initial availability is based on the Company's oil
and natural gas reserves, as assessed by GLJ Petroleum Consultants, the
Company's independent petroleum engineer, as at December 31, 2006 and as
adjusted by the Bank to incorporate cumulative production in the current year.
The remainder of US$40 million may be available, within the established term,
if the Bank determines from time to time that the oil and natural gas reserves
of the Company support additional lending amounts and the total commitment
under the facility is increased. Among other conditions, the amount available
under the facility is subject to a semi-annual review, with the next review to
be based on the Company's 2007 year-end reserve report scheduled for
completion in late February or early March 2008.
    The Company does not presently expect to draw on this facility before
year-end, but may be required to access funds if the current asset backed
commercial paper situation in Canada is not resolved in a timely manner.
Petrolifera advised that a total of $37.7 million is presently overdue and
owed to the Company by Apsley Trust and MMAI-I Trust. Petrolifera continues in
its efforts to recover these funds in a timely manner. The Company also
continues to monitor the situation closely and will provide updates when and
if appropriate.
    Petrolifera is currently of the opinion that it has the production,
sales, cash flow and cash balances in other bank accounts in Argentina and
Barbados to carry out its budgeted programs for the next several months,
without accessing this new facility.
    Petrolifera Petroleum Limited is a Calgary-based crude oil and natural
gas exploration, development and production company. It is active in the
Neuquén Basin, Argentina; in the Maranon and Ucayali Basins onshore Peru; and
holds concessions onshore Colombia. The Company's shares are listed for
trading on the Toronto Stock Exchange under the symbol PDP.


    This press release contains forward-looking statements, including
statements relating to planned development activities and sources of funding
in respect thereof. These statements are based on current expectations and
available information 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 and the risks and uncertainties relating to the market for asset
backed commercial paper. There can be no assurance as to the timing for
receipt of repayment of the asset backed commercial paper held by Petrolifera
or the amount available to satisfy such obligations given the current status
of the market and information regarding the underlying assets held by such
trusts. 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 as well as access to sufficient capital to finance such
expenditures. 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 initially reported levels or
that the company's new or existing high productivity wells will not incur
higher water cuts than that reported or reductions in reservoir pressures,
resulting in a decision to 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.

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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