Petrolifera Petroleum Limited secures Puesto Morales Este Concession in Argentina; Drilling already underway

About this update from Medexus Pharmaceuticals Inc.

[{"type":"text","content":"\n\n\n\nCALGARY, Feb. 20 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX)\nannounces today that it has secured a new contract over the Puesto Morales\nEste Concession ("PME Concession") in the Province of Rio Negro, Argentina.\n\n\nThe PME Concession covers an area of 12.8 square kilometers (3,163 acres\nor approximately five sections) and is situated east of and is contiguous with\nthe southeastern portion of the company's Puesto Morales Block in the Neuquen\nBasin, Argentina.\n\n\nThe negotiated contract is a one year Exploration License between the\nArgentinean branch of the company's subsidiary, Petrolifera Petroleum\n(Americas) Limited and Edhipsa, the provincial oil company of Rio Negro. The\nExploration License can be converted into a 25 year production license upon\nthe establishment of commercial production. The royalty rate has been\nestablished at 24 percent.\n\n\nUnder the terms of the contract, Petrolifera is committed to the drilling\nof a minimum of two exploratory wells, each to a minimum depth of\n1,500 meters, additional optional 3D seismic and other obligations, including\nsome agreed training costs for Edhipsa personnel. The total amount of the\nnegotiated work commitment has been calculated at US$10.6 million.\n\n\nPetrolifera advised that drilling is already underway on a\nseismically-defined structure on the block. The PME X-1001 well, which is\ncurrently at a depth of 189 meters, is targeted to be drilled to a projected\ntotal depth of 1,640 meters to evaluate various formations, including the\nSierras Blancas Formation, which is the prolific producing zone at Puesto\nMorales Norte.\n\n\nPetrolifera is a Calgary based crude oil and natural gas exploration,\ndevelopment and production company. It holds approximately 497,000 acres of\nexploratory and production rights in Argentina, and is currently producing in\nexcess of 9,000 boe/d of crude oil, natural gas and natural gas liquids at\nPuesto Morales. The company also holds 1.2 million acres of exploratory rights\nin Colombia and over 5.2 million acres under two licenses onshore Peru, where\nit is conducting seismic on its Ucayali Block 107 in preparation for drilling\nanticipated for later in 2008.\n\n\nForward-Looking Information\n\n\nThis press release contains forward-looking information, including but\nnot limited to future exploration and ...

More updates from Medexus Pharmaceuticals Inc.