Petrolifera Petroleum Reports Reserves and Pre-Tax Present Values for Year
Ended December 31, 2009

CALGARY, Feb. 26 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX) announces today it has received the estimates of the company's 1P ("Total Proved") , 2P ("Total Proved plus Probable") and 3P (Total Proved plus Probable plus Possible) reserves, as prepared by GLJ Petroleum Consultants of Calgary, Alberta ("GLJ") in a report with an effective date of December 31, 2009 ("GLJ 2009 Report"). The company's reserves declined on a year over year basis, reflecting 2009 production and sales, and further technical revisions primarily arising from some continuing complications with the efficiency of the company's waterflood in the northern portion of the Puesto Morales Norte ("PMN") Field in the Neuquén Basin, Argentina. These declines were offset positively by modest recognition of additional reserves for the company in Colombia, but now all these reserves are classified in the Probable category.

The GLJ 2009 Report and the estimates provided herein were prepared using assumptions and methodology guidelines outlined in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and in accordance with National Instrument 51-101 ("NI 51-101"). Comparisons provided herein with respect to Petrolifera's reserves are to estimates contained in a report prepared by GLJ with an effective date of December 31, 2008 ("GLJ 2008 Report"). The GLJ 2009 Report was prepared utilizing the GLJ January 1, 2010 price forecast, effective December 31, 2009 and adjusted to Petrolifera's asset mix and specific pricing circumstances in Argentina and in Colombia. In the GLJ 2009 Report, future net revenue is calculated after deduction of forecast royalties, operating expenses, capital expenditures and well abandonment costs but before corporate overhead or other indirect costs, including interest and income taxes. The pre-tax present value of future net revenue ("present value") is calculated by GLJ using various discount rates; this release will provide undiscounted future net revenue and the 10 percent present value thereof.

All references to barrels of oil equivalent ("boe") are calculated on the basis of 6 mcf: 1 bbl. Readers are cautioned that the conversion used in calculating barrels of oil equivalent is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Furthermore, boe may be misleading if used in isolation. Future net revenues disclosed herein do not represent fair market value. Also, estimations of reserves and future net revenue to be discussed in this press release constitute forward-looking information. See "Forward Looking Information" below.

Reserve Volumes and Values

The GLJ 2009 Report estimated that, after production of approximately 1.6 million barrels of crude oil and natural gas liquids, Petrolifera's 1P crude oil and natural gas liquids ("NGL") reserves decreased 32 percent to 7.7 million barrels as at December 31, 2009, compared to 11.3 million barrels at December 31, 2008. The decrease reflects sales and additional technical revisions in 2009, primarily associated with the performance of the waterflood in the northern portion of PMN Field. As 1P reserves declined, there is no basis for calculating reserve replacement ratios.

Petrolifera's 1P natural gas reserves also declined by almost 2.2Bcf or 21 percent to 8.2 Bcf after deduction of sales in 2009 of 1.7 Bcf and the adverse impact of technical revisions.

Petrolifera's 2P crude oil and NGL reserves decreased 19 percent to 13.9 million barrels, reflecting the impact of sales and negative technical revisions. At December 31, 2008, 2P crude oil and NGL reserves were 17.2 million barrels.

On an equivalent basis, Petrolifera's 1P reserves totaled 9.0 million boe at year end 2009 compared to 13.1 million boe in 2008, for a decrease of 31 percent. These reserves were forecast to generate $216 million of future net revenue, with an estimated pre-tax 10 percent present value ("10% PV") of $156 million.

On an equivalent basis, Petrolifera's 2P reserves were estimated to total 16.5 million boe at December 31, 2009 compared to 20.0 million boe in 2008, after production of 1.9 million boe and negative technical revisions. GLJ estimates these reserves will generate $426 million of future net revenue, with an estimated pre-tax 10% PV of $257 million. The company's calculated reserve life index, calculated by dividing remaining 2P reserves at December 31, 2009 by 2009 total boe sales, was approximately 9 years.

Petrolifera also commissioned GLJ to provide an estimate of possible reserves, which were last estimated effective December 31, 2008. GLJ estimated the company's 3P crude oil and NGL reserves to be 19.8 million barrels, with 3P natural gas reserves estimated at 28.8 Bcf and 3P equivalent reserves were estimated at 24.6 million boe. These reserves are estimated to generate $681 million of future net revenue with an estimated pre-tax 10% PV of $380 million.

The volume of possible reserves estimated at 8.1 million boe underscores continuing recognition of the development potential for both crude oil and natural gas of the lands reviewed in the GLJ 2009 Report, which included the La Pinta prospect in Colombia and the Puesto Morales/Rinconada Concession in Argentina. These estimates did not include a review of the company's undeveloped exploratory concessions or the value of drilling opportunities at Vaca Mahuida, Gobernador Ayala II and Puesto Guevara in Argentina nor of Petrolifera's exploratory holdings or drilling opportunities, except for the La Pinta prospect, in Colombia and none of the company's extensive holdings in Peru.

The following tables summarize the information contained in this press release. Tables may not add due to rounding.

    Petrolifera Petroleum Limited
    Crude Oil, NGL and Natural Gas Reserves(1)(2)(3)(4)(5)
                           OIL & NGLs (mbbl)           NATURAL GAS (mmcf)
    Category         31-Dec-08  31-Dec-09         31-Dec-08  31-Dec-09
                                              %                            %
                           GLJ        GLJ  change       GLJ       GLJ  change

    Total Proved (1P)   11,307      7,666   (32)     10,456      8,245   (21)
    --------------------------------------        ---------------------
    Total Probable       5,869      6,189     5       6,704      7,684    15
    --------------------------------------        ---------------------
    Total Proved plus
     Probable (2P)      17,175     13,855   (19)     17,160     15,929    (7)
    --------------------------------------        ---------------------
    Total Possible       8,156      5,941   (27)      7,601     12,885    70
    --------------------------------------        ---------------------
    Total Proved plus
     probable plus
     possible (3P)      25,331     19,797   (22)     24,761     28,814    16

                             BOE's (mboe)
    Category         31-Dec-08  31-Dec-09
                           GLJ        GLJ  change

    Total Proved (1P)   13,050      9,040   (31)
    Total Probable       6,985      7,469     7
    Total Proved plus
     Probable (2P)      20,035     16,510   (18)
    Total Possible       9,423      8,089   (14)
    Total Proved plus
     probable plus
     possible (3P)      29,458     24,599   (16)

    Petrolifera Petroleum Limited
    Before Tax Present Value of Future Net Revenue(1)(2)(3)(4)(5)
                                       Before Tax Present Value at 31-Dec-09
    Reserve Category                        Undiscounted   Discounted at 10%
                                                    $000                $000

    Total Proved (1P)                            215,840             155,675
    Total Probable                               209,725             101,576
    Total Proved plus Probable (2P)              425,566             257,252
    Total Possible                               255,796             122,345
    Total Proved plus probable
     plus possible (3P)                          681,362             379,595

    1)  Proved reserves are those reserves that can be estimated with a high
        degree of certainty to be recoverable. There is at least a 90%
        probability that the actual quantities recovered will equal or exceed
        the estimated proved reserves.
    2)  Probable reserves are those additional reserves that are less certain
        to be recovered than proved reserves. It is equally likely that the
        actual remaining quantities recovered will be greater or less than
        the sum of the estimated proved plus probable reserves.
    3)  Possible reserves are those additional reserves that are less certain
        to be recovered than probable reserves. There is at least a 10%
        probability that the quantities actually recovered will be equal to
        or exceed the sum of proved plus probable plus possible reserves. At
        December 31, 2009 there are 5.9 million barrels of possible oil and
        NGL reserves, 12.9 Bcf of possible natural gas reserves for a total
        of 8.1 million boe on an equivalent basis.
    4)  Reserve volumes, future net revenue and pre-tax present value of
        future net revenue do not include undeveloped land or the value of
        drilling opportunities in Argentina, Colombia or Peru.
    5)  Reserves are company working interest reserves before royalty.

Forward Looking Information

This press release contains forward-looking information, including but not limited to estimated reserves and future net revenues and reserve life index. The information is 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 geological interpretations, 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. The recent financial crisis of 2008 and 2009 resulted in severe economic uncertainty and resulting illiquidity in capital and credit markets, which increases the financial risk of the company's operations. Additional risks and uncertainties are described in the company's Annual Information Form, which is filed on SEDAR at

The reserves and future net revenue in this press release represent estimates only. The reserves and future net revenue from the company's properties have been independently evaluated by GLJ with effective dates of December 31, 2009 and December 31, 2008, respectively. This evaluation includes a number of assumptions relating to factors such as initial production rates, production decline rates, ultimate recovery of reserves, timing and amount of capital expenditures, marketability of production, future prices of crude oil and natural gas, operating costs, well abandonment and salvage values, royalties and other government levies that may be imposed during the producing life of the reserves. These assumptions were based on price forecasts prepared by GLJ for use as at the dates of these reports and many of these assumptions are subject to change and are beyond the control of the company. Details of these assumptions will be contained in the company's Annual Information Form for the year ended December 31, 2009. Actual production, sales and cash flows derived therefrom will vary from the evaluation and such variations could be material. The present value of estimated future net cash flows referred to herein should not be construed as the current market value of estimated crude oil, NGL's and natural gas reserves attributable to the company's properties. Actual future net revenue will be affected by factors such as the amount and timing of actual production, supply and demand for crude oil and natural gas, curtailments or increases in consumption by purchasers and changes in governmental regulations or taxation.

Due to 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. Forward looking information 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: Petrolifera Petroleum Limited, R. A. Gusella, Executive Chairman, (403) 538-6201; Or Gary D. Wine, President and Chief Operating Officer, (403) 539-8450; Or Kristen J. Bibby, Vice President Finance and Chief Financial Officer, (403) 539-8450,,

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