Petrolifera Petroleum announces new Sierras Blancas oil discovery at Puesto Morales, Argentina and provides operating update

About this update from Medexus Pharmaceuticals Inc.

[{"type":"text","content":"\n\n\n\nCALGARY, Dec. 3 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX)\nannounces today that the PMN 1038 well on the company's 100 percent-owned and\noperated Puesto Morales Concession in the Neuquen Basin, Argentina has\nrecently tested light gravity crude oil at a rate of approximately 1,500 bbl/d\nfrom the Sierras Blancas Formation.\n\n\nThe results are important as the well is situated between the company's\nNorthern and Central lobes of the Puesto Morales Norte Field and indicates\ncontinuity between the two accumulations. The well will be completed and tied\nin shortly and it is anticipated the well will be produced initially at a rate\nof between 500 bbl/d - 1,000 bbl/d.\n\n\nFour drilling rigs and four service rigs continue to operate for\nPetrolifera on its Puesto Morales and Rinconada Blocks which comprise the\nconcession. Included in current drilling is the 1017 well, situated southeast\nof the central lobe; this is the first deviated well to be drilled on the\nconcession using the Quintana No. 13 rig, which was imported into Argentina\nand has greater drilling depth capacity. This rig has been used to drill a\nnumber of water injection wells during its break-in period. The company's\nwater treatment, water injection and water handling facilities are scheduled\nfor a December 2007 startup, which should increasingly impact on overall\nproduction levels during the ensuing 18 months, as the waterflood pressure\nmaintenance scheme becomes operative and effective.\n\n\nSeparately, Petrolifera advises that a commissioning ceremony was\nrecently held for the company's high pressure natural gas pipeline which runs\nfrom the Puesto Morales Norte field to the Medanito area. It is anticipated\nthe pipeline will initially handle approximately 10 mmcf/d of natural gas,\nincluding associated gas from the surrounding oil field and some\nnon-associated natural gas from the Loma Montosa and Sierra Blancas\nFormations. The rated capacity of the new pipeline with in-place compression\nis 35 mmcf/d, which would allow for continuing sales expansion.\n\n\nRecently, Petrolifera tested 2.3 mmcf/d of natural gas and 20 bbl/d of\ncondensate through a 14 mm choke from its PMOx-1001 well, located on the\nwestern border of the concession. It appears probable this well will be tied\ninto the new high pressure pipeline for immediate sale to ava...

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