Petrolifera Petroleum secures new oil pricing arrangement for Argentina; provides operations update

About this update from Medexus Pharmaceuticals Inc.

[{"type":"text","content":"\n\n\n\nCALGARY, June 10 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX)\nannounced today it has completed an agreement with the major purchaser of its\nArgentinean crude oil sales volumes, whereby effective June 1, 2008 and\nincluding May 2008 sales, which are settled in the subsequent month,\nPetrolifera will now receive US$47 per barrel of Puesto Morales Medanito crude\noil. This represents an increase of approximately US$5.00 per barrel of crude\nsold into the market. The agreement also anticipates a favored nations\nprovision and further timely adjustments in the event of changes to prevailing\nexport tax provisions in Argentina. The modification reflects the impact of\nmarket forces as opposed to any legislative changes in the country.\n\n\nFurthermore, Petrolifera is scheduled to receive a significant cash\npayment of a minimum of US$2.50 plus valued added tax ("IVA") for each of the\napproximately 1.4 million barrels of crude oil which have been delivered to\nthe purchaser since late in 2007, until the new arrangement became effective\nin 2008. This price improvement and payment for previously delivered crude oil\nwill positively impact on Petrolifera's reported revenue, cash flow and\nliquidity for the remainder of 2008.\n\n\nPetrolifera continues to conduct drilling and testing operations in\nArgentina. Current crude oil sales at Puesto Morales Norte exceed 8,000 bbl/d\nand oil equivalent sales were 9,028 boe/d in April 2008, compared to\n8,180 boe/d year to date in 2008 and approximately 32 percent above April 2007\nsales of 6,450 boe/d. Readers are cautioned that all references to barrels of\noil equivalent (boe) are calculated on the basis of 6 mcf:1 bbl. Boes may be\nmisleading, particularly if used in isolation. This conversion is based on an\nenergy equivalency conversion method primarily applicable at the burner tip\nand does not represent a value equivalency at the wellhead.\n\n\nSales and production increases during the balance of 2008 are anticipated\nto be derived from the impact of the company's pressure maintenance program at\nPuesto Morales Norte, anticipated to reach peak influence in the second half\nof 2009. It is also anticipated that further production and consequent sales\nincreases will derive from continuing development drilling at Puesto Morales\nNorte and from higher impact explorato...

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