Business
Petrolifera Confirms Its Financial Integrity as Capital Markets Deteriorate
CALGARY, Oct. 9 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX) wishes to comment on recent sha...
About this update from Medexus Pharmaceuticals Inc.
[{"type":"text","content":"\n\n\n\nCALGARY, Oct. 9 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX) wishes\nto comment on recent share price movements, capital and credit markets and\ncurrent activity being conducted by the company.\n\n\nARGENTINA AND FINANCIAL MATTERS\n\n\nThe company wishes to confirm that during the months of July and August\nin the third quarter 2008 its production has been relatively stable at\napproximately 8,000 boe/d, similar to levels reported for the second quarter\n2008. There were some minor crude oil production declines in September 2008\ndue to adjustments being made in the Puesto Morales Norte Field with respect\nto pumping systems designed to handle the changing fluid mix with the water\ninjection that is occurring at the present time as part of the waterflood\nprogram. These changes to extraction rates are expected to restore production\nrates in the fourth quarter in line with expectations of the impact of the\nwaterflood as contained in our recent Fall 2008 Corporate Presentation, which\nis posted on our website at www.petrolifera.ca. We would note that the\nexpected waterflood impact is occurring, offsetting normal declines that arise\nfrom the production process. We are awaiting final September natural gas sales\nlevels and we will be reporting to our shareholders our Third Quarter 2008\noperating and financial results on November 11, 2008 when our Board of\nDirectors will convene to review these results and the company's 2009\noperating and financial plan and budget.\n\n\nPrices have been stable in Argentina for crude oil, albeit at much below\nworld prices, especially as has been the case since last December 2007, when\nthe imposition of increased export taxes reduced the effective wellhead price\nto US$42 per barrel. This price was subsequently negotiated up to $47 per\nbarrel without any concessions from the governing authorities. It should also\nbe noted that as the Canadian dollar has weakened recently, our realized price\nin August 2008, for example, was $49.87 per barrel when translations of the US\ndollar, the Argentinean peso and the Canadian dollar were incorporated into\nCanadian dollar reporting, which is used in Petrolifera's financial\nstatements. All of Petrolifera's production occurs in Argentina.\n\n\nOperationally, we are conducting drilling operations in Argentina using\none drilling rig and one s...