Petrolifera Petroleum Limited secures Puesto Morales Este Concession in Argentina; Drilling already underway

    CALGARY, Feb. 20 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX)
announces today that it has secured a new contract over the Puesto Morales
Este Concession ("PME Concession") in the Province of Rio Negro, Argentina.
    The PME Concession covers an area of 12.8 square kilometers (3,163 acres
or approximately five sections) and is situated east of and is contiguous with
the southeastern portion of the company's Puesto Morales Block in the Neuquén
Basin, Argentina.
    The negotiated contract is a one year Exploration License between the
Argentinean branch of the company's subsidiary, Petrolifera Petroleum
(Americas) Limited and Edhipsa, the provincial oil company of Rio Negro. The
Exploration License can be converted into a 25 year production license upon
the establishment of commercial production. The royalty rate has been
established at 24 percent.
    Under the terms of the contract, Petrolifera is committed to the drilling
of a minimum of two exploratory wells, each to a minimum depth of
1,500 meters, additional optional 3D seismic and other obligations, including
some agreed training costs for Edhipsa personnel. The total amount of the
negotiated work commitment has been calculated at US$10.6 million.
    Petrolifera advised that drilling is already underway on a
seismically-defined structure on the block. The PME X-1001 well, which is
currently at a depth of 189 meters, is targeted to be drilled to a projected
total depth of 1,640 meters to evaluate various formations, including the
Sierras Blancas Formation, which is the prolific producing zone at Puesto
Morales Norte.

    Petrolifera is a Calgary based crude oil and natural gas exploration,
development and production company. It holds approximately 497,000 acres of
exploratory and production rights in Argentina, and is currently producing in
excess of 9,000 boe/d of crude oil, natural gas and natural gas liquids at
Puesto Morales. The company also holds 1.2 million acres of exploratory rights
in Colombia and over 5.2 million acres under two licenses onshore Peru, where
it is conducting seismic on its Ucayali Block 107 in preparation for drilling
anticipated for later in 2008.

    Forward-Looking Information

    This press release contains forward-looking information, including but
not limited to future exploration and development plans in respect of the PME
Concession and anticipated work commitments in respect of the PME Concession.
Forward looking information is not based on historical facts but rather on
Management's expectations regarding the company's future growth, results of
operations, production, future capital and other expenditures (including the
amount, nature and sources of finding thereof), competitive advantages, plans
for and results of drilling activity, environmental matters, business
prospects and opportunities. 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 There can be no assurance that the PME X-1001 well will
encounter hydrocarbons capable of commercial production or that the
exploration license will be converted into a production license. 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. A barrel of oil equivalent (boe)
is derived by converting natural gas to oil in the ratio of six thousand cubic
feet of natural gas to one barrel of oil and 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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