Petrolifera Petroleum Limited updates Puesto Morales 1061 test results; provides Argentinean drilling and testing update; secures EIA permit for Ucayali Block 107 in Peru to permit startup of seismic program

    CALGARY, Aug. 14 /CNW/ - Petrolifera Petroleum Limited announced today
that following the perforation of the upper portion of the Sierras Blancas
Formation in the RN. PM. a-1061 well, situated on the western perimeter of the
central pool of the Puesto Morales Block in the Neuquén Basin onshore
Argentina, light gravity crude oil flowed on test at a calculated rate of
2,000 bbl/d though an 18 millimeter choke. It will be recalled that, on an
earlier test, the well had flowed at a rate of 1,490 bbl/d through the
same-sized choke, from perforations in the lower portion of the oil-bearing
Sierras Blancas Formation, which was calculated to be 17 meters thick, based
on log analysis. Yesterday, August 13, 2007, the well flowed and produced
through the same-sized 18 millimeter choke at a rate of 1,324 bbl/d, with no
water. Petrolifera's total production for the day exceeded 8,200 boe/d.
    Currently, the 1033 and 1042 wells on the Puesto Morales Block have been
drilled and logged and await testing. Both wells are indicated multi-zone
hydrocarbon discoveries based on drilling and log analysis and are situated on
the northern lobe east and northeast of the prolific 1027 well, which tested
approximately 2,400 bbl/d from the Sierras Blancas Formation and is now
onstream producing at approximately 1,000 bbl/d. Also, as previously announced
testing of the uphole Centenario Formation in the 1027 well was deferred, due
to the high productivity of the Sierras Blancas Formation in the well,
although the well yielded oil from that zone to the mud pits while drilling;
this zone will be evaluated later this year through the drilling of a shallow
twin well or wells.
    The company's service rig has now been moved and is currently on location
testing various zones in the Centenario Formation in the 1018 well. This
completion rig will return to test both 1033 and 1042 wells, once the testing
program at 1018 is completed. Drilling is also underway at the 1044 well on
the northern lobe at Puesto Morales. Petrolifera anticipates having three rigs
available for drilling on the Puesto Morales Block until year-end 2007, with
two completion rigs available on the Block from mid-October onwards. It is
anticipated the Quintana Rig No. 13 will be available by late September 2006
for directional drilling at Puesto Morales and will replace the Nabors No. 832
rig, which has been on loan from another company active in the region and is
due to be returned once the Q13 rig is on location.
    At Rinconada, the 1006 well, which is an approximate two kilometer
stepout to the 1001 discovery well, which on test flowed light oil to the
surface at rates of approximately 700 bbl/d, has been cased as an indicated
Sierras Blancas oil well. This is the third consecutive indicated success in
the Rinconada program, which anticipates up to 19 wells to be drilled prior to
year end. The 1006 well will be tested later upon the early September arrival
of a second service or completion rig, which will assist Petrolifera in
meeting its objectives of drilling, testing and completing approximately 55
wells in Argentina by year end. A second drilling rig (Pride) is anticipated
to arrive at Rinconada by mid-September 2007.
    The company is also evaluating contracting a sixth rig to concentrate on
exploratory drilling in the region.
    Elsewhere, in Peru the company has just received its Environmental Impact
Assessment ("EIA") certificate for Ucayali Block 107. As a result, the company
is now in a position to commence its planned 800 kilometer seismic program.
Seismic crews are at the staging area and will commence the program over this
prospective Block as soon as it is practical. This is a large program on this
jungle block and results will assist in determining drillable locations for
2008. The Ucayali Block is on trend with the giant Camisea natural gas and
natural gas liquids field and exhibits the potential for both crude oil and
natural gas prospects to be developed for further evaluation next year.

    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 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) 538-6201, Fax (403) 538-6225,,

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