CALGARY, Aug. 11 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX) announced today it has signed a letter of intent with Petrex S.A ("Petrex") whereby Petrex has agreed to provide a heli-transportable drilling rig for a 24 month period from commencement of well operations in Colombia with an option for a further 12 month period. The formal contract is currently being finalized and rig mobilization is expected to begin shortly, with a view to being on location at the La Pinta prospect, situated within the Sierra Nevada I License in the Lower Magdalena Basin onshore Colombia, on or before September 30, 2008. It is anticipated it will take 75 to 90 days to drill the La Pinta well. Thereafter, Petrolifera plans to drill the Brillante prospect on the same license.
After completion of the initial two well drilling program in Colombia, Petrolifera anticipates it will mobilize the rig to Peru for the drilling of the company's first Peruvian exploratory well, currently anticipated to be drilled on Block 107 in the Ucayali Basin onshore Peru.
Petrolifera Petroleum Limited is a Calgary-based crude and natural gas exploration and production company with significant operated interests in ten blocks in Argentina, Colombia and Peru in South America. These blocks cover approximately seven million acres. Current crude oil and natural gas production is derived from the Puesto Morales/Rinconada Concession in the Neuquen Basin onshore Argentina. The company's capital program for 2008 is anticipated to reach $108 million, with increased expenditures in Colombia and Peru compared to levels in 2007, as new exploration programs are presently underway. Simultaneously, the company is maintaining an active capital expenditure program in Argentina.
Forward-Looking Information
This press release contains forward-looking information, included but not limited to future exploration and development opportunities, future drilling plans, spud dates, drilling times and anticipated capital expenditures. Forward-looking information is not based on historical facts but rather on Management's expectations regarding the company's future growth, results of operations, production, future capital and other expenditures (including the amount, nature and sources of finding thereof), competitive advantages, plans for and results of drilling activity, environmental matters, business prospects and opportunities. Such forward-looking information reflects Management's current beliefs and assumptions and is based on information currently available to Management. Forward-looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information, including but not limited to, risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production, delays or changes to 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 environment 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 the risk associated with international activity. Additional risks and uncertainties are described in the company's Annual Information Form which is filed on SEDAR at www.sedar.com.
Forecast capital expenditures are based on Petrolifera's current budgets and development plans which are subject to change based on commodity prices, market conditions, drilling success and potential timing delays. Petrolifera's capital budget has been prepared based upon anticipated costs for equipment and services which are subject to fluctuation based upon market conditions and availability. Additionally, forecast capital expenditures do not include capital required to pursue future acquisitions.
Although the forward-looking information contained herein is based upon assumptions which Management believes to be reasonable, the company cannot assure investors that actual results will be consistent with this forward-looking information. This forward-looking information is made as of the date hereof and the company assumes no obligation to update or revise this information to reflect new events or circumstances, except as required by law. Because of 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.