Petrolifera Petroleum reports lower reserves and pre-tax present values for year ended December 31, 2008; Initiates process to sell Argentinean assets

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[{"type":"text","content":"\n\n\n\nCALGARY, March 2 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX)\nannounces today it has received the estimates of the company's 1P ("Total\nProved"), 2P ("Total Proved plus Probable") and 3P (Total Proved plus Probable\nplus Possible) reserves, as prepared by GLJ Petroleum Consultants of Calgary,\nAlberta ("GLJ") in a report with an effective date of December 31, 2008 ("GLJ\n2008 Report"). The company's reserves declined on a year over year basis,\nreflecting 2008 production and sales, technical revisions primarily arising\nfrom some current complications with the efficiency of the company's\nwaterflood at Puesto Morales Norte in the Neuquen Basin, Argentina, offset\npositively by modest recognition of reserve additions through exploration and\nimproved recovery in Argentina and by the initial recognition of reserves for\nthe company in Colombia.\n\n\nThe GLJ 2008 Report and the estimates provided herein were prepared using\nassumptions and methodology guidelines outlined in the Canadian Oil and Gas\nEvaluation Handbook ("COGE Handbook") and in accordance with National\nInstrument 51-101 ("NI 51-101"). Comparisons provided herein with respect to\nPetrolifera's reserves are to estimates contained in a report prepared by GLJ\nwith an effective date of December 31, 2007 ("GLJ 2007 Report"). The GLJ 2008\nReport was prepared utilizing the GLJ January 1, 2009 price forecast,\neffective December 31, 2008 and adjusted to Petrolifera's asset mix and\nspecific pricing circumstances in Argentina and in Colombia. In the GLJ 2008\nReport, future net revenue is calculated after deduction of forecast\nroyalties, operating expenses, capital expenditures and well abandonment costs\nbut before corporate overhead or other indirect costs, including interest and\nincome taxes. The pre-tax present value of future net revenue ("present\nvalue") is calculated by GLJ using various discount rates; this release will\nprovide undiscounted future net revenue and the 10 percent present value\nthereof.\n\n\nAll references to barrels of oil equivalent ("boe") are calculated on the\nbasis of 6 mcf: 1 bbl. Readers are cautioned that the conversion used in\ncalculating barrels of oil equivalent is based on an energy equivalency\nconversion method primarily applic...

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