Petrolifera Petroleum Limited (PDP - TSX) announces today that the PMN 1038 well on the company's 100 percent-owned and operated Puesto Morales Concession in the Neuquén Basin, Argentina has recently tested light gravity crude oil at a rate of approximately 1,500 bbl/d from the Sierras Blancas Formation.

The results are important as the well is situated between the company's Northern and Central lobes of the Puesto Morales Norte Field and indicates continuity between the two accumulations. The well will be completed and tied in shortly and it is anticipated the well will be produced initially at a rate of between 500 bbl/d - 1,000 bbl/d.

Four drilling rigs and four service rigs continue to operate for Petrolifera on its Puesto Morales and Rinconada Blocks which comprise the concession. Included in current drilling is the 1017 well, situated southeast of the central lobe; this is the first deviated well to be drilled on the concession using the Quintana No. 13 rig, which was imported into Argentina and has greater drilling depth capacity. This rig has been used to drill a number of water injection wells during its break-in period. The company's water treatment, water injection and water handling facilities are scheduled for a December 2007 startup, which should increasingly impact on overall production levels during the ensuing 18 months, as the waterflood pressure maintenance scheme becomes operative and effective.

Separately, Petrolifera advises that a commissioning ceremony was recently held for the company's high pressure natural gas pipeline which runs from the Puesto Morales Norte field to the Medanito area. It is anticipated the pipeline will initially handle approximately 10 mmcf/d of natural gas, including associated gas from the surrounding oil field and some non-associated natural gas from the Loma Montosa and Sierra Blancas Formations. The rated capacity of the new pipeline with in-place compression is 35 mmcf/d, which would allow for continuing sales expansion.

Recently, Petrolifera tested 2.3 mmcf/d of natural gas and 20 bbl/d of condensate through a 14 mm choke from its PMOx-1001 well, located on the western border of the concession. It appears probable this well will be tied into the new high pressure pipeline for immediate sale to available industrial markets. Additionally, the company recently tested over 1 mmcf/d from a basal Loma Montosa zone in the 1007 well, located within the Puesto Morales Sur Field. Crude oil was also tested from the Loma Montosa Zone 10 in this well and following a frac, it is anticipated the well will be completed as a dual zone producer and tied in to production facilities.

In Peru, the company's 2D seismic program on Ucayali Block 107 is proceeding favorably with encouraging preliminary results. The company is also advancing discussions to secure a suitable heli-transportable drilling rig for use in drilling a well or wells on Block 107 during the latter months of 2008 and into 2009. Drilling is also anticipated on Block 106 in the Maranon Basin during 2009, following completion of the company's Environmental Impact Assessment and shooting a 550 kilometer 2D seismic program in 2008.

In Colombia, several drillable prospects have been defined on the Sierra Nevada I license and plans are progressing to secure drilling rig commitments for the second half of 2008. Petrolifera is pleased with the quality of prospects it has generated in Colombia, including their associated reserve potential.

Petrolifera Petroleum Limited is a Calgary-based crude oil and natural gas exploration and production company engaged in activity in Argentina, Peru and Colombia. The company owns or controls in excess of 6.5 million acres of petroleum and natural gas rights in sub-Andean basins in South America. As disclosed in the company's recent Investor Presentation, which is posted on its website at www.petrolifera.ca, production is expected to increase to a targeted level of 14,500 boe/d by year end 2008, reflecting the impact of development drilling, the waterflood at Puesto Morales, increased sales of natural gas and the impact of the company's ongoing 69 well drilling program in Argentina. No volume impact for drilling success in either Peru or Colombia is factored into the company's production outlook.

Forward Looking Statements

This press release contains forward-looking information, including but not limited to expectations with respect to production rates, flow rates and productive capacity of certain wells, impact of the company's new water treatment, water injection and water handling facilities and continued exploration and drilling activities. This information is based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ 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 and recoverability thereof; 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 party contractors and risk associated with international activity. Although Petrolifera believes that its expectations represented by this forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. In particular, there can be no assurance that the flow rates of newly drilled wells will result in stabilized production at these levels. 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. For a detailed description of the risks and uncertainties facing Petrolifera, readers should refer to Petrolifera's Annual Information Form as filed at www.sedar.com.

SOURCE: Petrolifera Petroleum Limited

R. A. Gusella, Executive Chairman, Petrolifera Petroleum Limited, Phone: (403) 538-6201, Fax: (403) 538-6225, inquiries@petrolifera.ca, www.petrolifera.ca