Petrolifera provides corporate and operational update

CALGARY, April 17 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX) is pleased to provide the following update on operations and corporate activities.

Colombia

The La Pinta 1 exploration well, which is currently being drilled on Petrolifera's 100 percent owned Sierra Nevada License in Colombia, was at a depth of approximately 10,600 feet as of April 16th, 2009. It is now anticipated the well will be drilled to a final total depth of approximately 11,000 feet. Petrolifera continues to be encouraged by results encountered during the drilling of the La Pinta 1 well, based on hydrocarbon mud log shows and the interpretation of intermediate logging runs. The drilling of the well is significantly behind the originally anticipated schedule, due to problems which were encountered, firstly while attempting to run the 9 5/8th inch intermediate casing in the upper section of the wellbore and subsequently, challenges arising from instability in the lower section of the well. The former problem in the upper part of the well was resolved and the instability in the lower section of the wellbore now appears to be under control. Due to the downhole instabilities, it has been decided to attempt to complete the well at a depth of 11,000 feet instead of the originally planned depth of 13,000 feet. An application in this regard has been submitted to ANH, the Colombian Government Agency that regulates such activity and a decision is anticipated shortly. Petrolifera's management believes that all the geological objectives of the well and contractual obligations of the license will be met with the well terminating at a depth of 11,000 feet. Further evaluation is anticipated to occur by testing, after the well is logged and the bottom portion of the wellbore is cased.

Peru

On April 16, 2009 Petrolifera was awarded Block 133, which is contiguous with the western boundary of the company's Block 107 in the Ucayali Basin onshore Peru. Block 133 comprises approximately 979,000 acres. The work commitments on this Block for the first period (18 months) are primarily comprised of geological field studies and as such are not capital intensive. This license represents important protection acreage for Petrolifera in relation to its planned activities on Block 107 in future years.

In May 2009, in accordance with the contract terms of Block 107, Petrolifera will be relinquishing approximately 1.6 million acres, or approximately one half of the original 3.2 million acres which comprised Block 107. Petrolifera believes it will be retaining the most prospective acreage under Block 107, based on its interpretation of the 950 km 2D seismic program acquired over the acreage by the company in 2007 and 2008. After the required relinquishment and the award of Block 133, Petrolifera will control approximately 4.5 million acres in Peru.

Argentina

As recently announced, Petrolifera recently commenced drilling on its 100 percent owned Gobernador Ayala II (GA II) Concession, located in La Pampa Province, Argentina. As of mid-April 2009, Petrolifera has drilled and completed five wells on the Block and is very encouraged by the results to date, based on hydrocarbon shows and limited testing results. Petrolifera anticipates drilling up to an additional five wells on this Block before the expiry of the exploration phase. A request has been submitted to the Government of La Pampa to convert the GA II Concession from an exploratory to a production status.

Corporate

The company's Annual Meeting will be held in Calgary on May 6, 2009, on which date its results for the three months ended March 31, 2009 will be released. A conference call to discuss first quarter 2009 results will be scheduled for the following morning, May 7, 2009 and call in information will be included in the press release.

The company's Annual Report for 2008 has been mailed to all shareholders of record and has been posted on its website at www.petrolifera.ca.

The company's disposition process with respect to its Argentinean interests is continuing on schedule.

FORWARD LOOKING INFORMATION

This press release contains forward-looking information, including but not limited to corporation activities in Argentina and Colombia and anticipated results in connection therewith and the anticipated timing of receipt of a decision from ANG. This information is based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses and health, safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with negotiating with foreign governments and third parties located in foreign jurisdictions and risk associated with international activity. There can be no assurance that the exploratory wells being drilled by Petrolifera in Colombia and Argentina will result in the discovery of commercial quantities of crude oil and natural gas or, if there is a commercial discovery, that Petrolifera will be able to realize such reserves as intended. Hydrocarbon shows and results of logs do not confirm the presence of commercial hydrocarbons. Additional risks and uncertainties are described in the company's Annual Information Form which is filed on SEDAR at www.sedar.com. Due to the risks, uncertainties and assumptions inherent in forward-looking information, prospective investors in the company's securities should not place undue reliance on this forward-looking information. Readers should review the risk-factors set forth in the company's Annual Information Form, available at www.sedar.com, for a detailed description of the risks and uncertainties facing the company. Forward looking information contained in this press release is made as of the date hereof and is subject to change. The company assumes no obligation to revise or update forward looking information to reflect new circumstances, except as required by law.