Petrolifera Petroleum provides drilling and testing update

    CALGARY, April 13 /CNW/ - Petrolifera Petroleum Limited (PDP- TSX)
announced today that the RN. PM. a-1021 well, situated on the northern portion
of the Puesto Morales/Rinconada Concession in the Neuquen Basin, Argentina,
has been tested and is a flowing crude oil well. The well is flowing at a rate
of approximately 1,430 barrels of light gravity crude oil per day with a
normal gas/oil ratio and no water. Further testing of the well will occur over
the next several days utilizing various choke sizes and this will be followed
by a pressure buildup test. The oil is flowing from what appears to be an
excellent reservoir, based on examination of cores which were taken from the
well bore during the drilling process.
    This excellent well will be placed onstream immediately. It is associated
with the northern culmination at Puesto Morales and is situated southeast of
the original 1003 discovery well on this accumulation.
    The 1016 well, drilled and completed earlier this campaign, is now on
pump and is producing at a rate of approximately 150 barrels of crude oil per
day with a five percent water cut. Petrolifera is gradually increasing the
pumping rate to determine the optimum stroke rate for the pump and production
rate for the well. This well originally flowed at a rate of about 460 barrels
of crude oil per day but subsequently stopped flowing, necessitating being
placed on pump. Accordingly, further production increases from this well are
possible. It should be noted this well was an extension to the west from the
main northern accumulation and did encounter poorer quality reservoir, some
pressure depletion and a high gas/oil ratio, all of which affected the ability
of the well to flow of its own accord. Placing such a well on pump is normal
industry practice and commercial economic returns are anticipated from this
    The company also wishes to advise that the RN. PM. a-1023 well, situated
on the southern 1002-1012-1013 accumulation, is drilling ahead and should
reach total depth sometime next week.
    Petrolifera has been advised by its drilling contractor that the
retrofitting of the second rig to be available to the company under a
long-term contract is nearing completion and is anticipated to be ready for
drilling activity in early May 2007. It is expected this rig will primarily be
used on the Rinconada Block.
    Petrolifera has recently been conducting a number of field testing
programs on various wells at Puesto Morales. Accordingly, its production
profile has been somewhat erratic during the month of April 2007. Most of this
field work is designed to provide required information in anticipation of the
introduction of a pressure maintenance waterflood program during the upcoming
months, as well as the anticipated commencement of significant sales of
natural gas from the region. As a consequence of these initiatives and some
normal and anticipated pressure declines due to production from what were
virgin reservoirs at the two culminations discovered to date, current sales
has been curtailed to approximately 10,000 barrels of crude oil per day. Most
of these sales are from production derived from flowing crude oil wells,
including wells for which the flow rates are tubing-constrained. The company's
crude oil sales are being supplemented by current natural gas sales to local
markets of approximately 2.4 mmcf/d. These crude oil sales numbers do not
include the volumes from the discovery announced today and are below those
achieved in the first quarter 2007. These results are now being finalized for
reporting to shareholders in our first quarter 2007 interim report. This will
be issued on May 8, 2007, the date of our Annual Meeting. We anticipate first
quarter 2007 sales of crude oil exceeded fourth quarter 2006 levels.
    Once the company's field facilities are finalized, its pressure
maintenance program is implemented, significant commercial volumes of natural
gas are being sold and new wells contribute additional production, Petrolifera
continues to anticipate it will deliver significant growth in its financial
and operating results for 2007, as compared to 2006. Revised guidance will be
issued after first quarter 2007 results are finalized. Any change will more
likely reflect the impact of the timing of rig availability, rather than as a
result of other factors.
    A third rig with greater depth capacity than the Rinconada rig is
anticipated to be available by mid-year 2007. This will allow Petrolifera to
evaluate numerous new structures which have been identified on its acreage,
following interpretation of the new 3D seismic acquired in late 2006. Also,
during the summer and fall of 2007, Petrolifera anticipates it will drill a
number of Quintuco natural gas wells and certain directional wells northeast
of the 1019 well as part of the planned 2007 drilling program, once the
flexibility of a third rig is available to the company.
    Petrolifera also advises that it has signed both the Turpial TEA and the
Sierra Nevada License in Colombia and is now awaiting final signatures from
ANH, the government agency. This will mark Petrolifera's entry into a third
country in South America. These blocks are described more fully in the
company's Annual Report, which has been mailed to all shareholders and is
posted on the company's website at

    Petrolifera is a Calgary-based oil and natural gas exploration and
production company active in Argentina, Colombia and Peru. The company has
grown organically through drilling of new discoveries at Puesto Morales in
Argentina and holds extensive acreage and an attractive inventory of new
prospects in all three countries in which it is now engaged. An aggressive,
self-financed capital program anticipated to exceed $150 million is planned
for 2007. Petrolifera has a strong balance sheet, over $60 million of cash and
no debt.

    Forward Looking Statements: This press release contains forward looking
statements.  Refer to the company's Annual Information Form ("AIF") on for a discussion of Risk Factors.

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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