CALGARY, April 2 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX) announced today it continues to grow and reestablish its solid production and sales base in Argentina. During March 2008, the company's estimated sales volumes rose approximately 40 percent from January levels to reach an estimated 9,000 boe/d. Petrolifera's March 2008 estimated exit sales rate was approximately 9,300 boe/d, of which approximately 85 percent was represented by crude oil and natural gas liquids sales and the balance was natural gas sales. Sales volumes reported herein have been estimated based upon available information and may differ from reported sales volumes which will be based on actual sales receipts.
Petrolifera's estimated monthly sales volumes for the first quarter 2008 were January - 6,460 boe/d; February - 8,290 boe/d and March - 8,975 boe/d. The estimated daily average sales rate for the first quarter 2008 was approximately 7,900 boe/d, an increase of twelve percent over fourth quarter 2007 levels.
Readers are cautioned that a barrel of oil equivalent (boe) is derived by converting natural gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil and that this may be misleading, particularly if used in isolation. A boe conversion is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Production and consequent sales volumes in January were affected to some extent by the installation of new water treatment and waterflood facilities but showed excellent improvement throughout the remainder of the quarter, aided by successful new infill drilling as detailed herein. The current level of production and sales does not yet in any measurable manner reflect the activation of the company's recently installed waterflood at Puesto Morales Norte. Petrolifera anticipates it will be later in 2008 before the initial impact of the waterflood will be discernible and the company does not expect the full impact to occur until the second half of 2009. It is anticipated there will be increasing stability in Petrolifera's base production and sales volumes once the waterflood is optimized.
During the first quarter 2008, Petrolifera drilled or initiated drilling of 16 wholly-owned wells at Puesto Morales/Rinconada, resulting in eight oil producers, two water injectors, one gas producer (PME x-1001 - currently on a sustained production test through a ten millimeter choke at a rate of approximately 1.8 mmcf/d from the Loma Montosa Formation), two wells waiting on completion, one drilling well, one preparing to drill on the company's Rinconada Block and one dry hole. The company's best new well was PMN a-1081, which tested over 1,000 bbl/d of light gravity Sierras Blancas crude oil and is now onstream contributing to the company's much improved sales. Follow-ups to this well are anticipated.
The company expects to drill its second exploratory well on its 100 percent-owned Puesto Morales Este block during April 2008 and plans an aggressive evaluation and drilling program on the balance of its extensive Argentinean acreage position during the balance of 2008. Petrolifera is currently operating with two drilling rigs and two service rigs on its Argentinean acreage.
Detailed financial and operating results for the first quarter 2008 will be released to the public on May 8, 2008, which is also the date of the company's Annual General Meeting, to be held in Calgary, Alberta at 3:00 P.M., MT, at the Calgary Petroleum Club.
Petrolifera Petroleum Limited is a Calgary-based crude oil and natural gas exploration and production company with its principal producing asset at Puesto Morales Norte in the Neuquen Basin onshore Argentina. It also holds extensive exploratory rights and plans drilling activity in Colombia and onshore Peru, where it is conducting an extensive 2D seismic program on block 107 in the Ucayali Basin in preparation for the anticipated drilling program.
FORWARD LOOKING INFORMATION:
This press release contains forward-looking information, including but not limited to future exploration and development plans and the anticipated timing associated therewith, anticipated production growth from planned capital programs, current production, recently drilled wells and the recently activated waterflood, anticipated productivity of certain recently drilled wells and follow-up potential to the PMN a-1081 exploratory well. 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 risk associated with international activity. There can be no assurance that flow rates established on the sustained production test of the PME x-1001 will be maintained when this well is placed onstream. Additional risks and uncertainties are described in the company's Annual Information Form for the year ended December 31, 2007 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 for the year ended December 31, 2007, 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 are subject to change. The company assumes no obligation to revise or update forward looking information to reflect new circumstances, except as required by law.