For those hunting big game, Peru is one of the last frontiers left for finding big oil and natural gas pools. It is truly elephant country. We are talking oil pools containing hundreds of millions of barrels of oil and trillions of cubic feet of natural gas in pools waiting to be discovered. If you look at Petrolifera's 2005 Annual Report http://www.petrolifera.ca/documents/... you will see on page 3 that Petrolifera's President Gary Wine is an expert on Peru's geology. He spent five years advising the Peruvian government agency Perupetro on its leases. So when he went to work for Petrolifera, his knowledge enabled Petrolifera to secure two of the best leases in Peru.

The following quote shows Mr. Wines expertise:

"In late December 2004, opportunities to acquire new licenses in Peru were brought to Petrolifera’s attention by Mr. Gary Wine, who was consulting to the company in Argentina and later, in March 2005, was appointed President of Petrolifera. Mr. Wine had spent a good part of the previous five years advising Perupetro, the Peruvian state agency, on geological matters and thus had secured extensive knowledge of local opportunities and procedures. Peru had recently revamped its tax,royalty and tenure policies as related to the award of new exploratory licenses. As a consequence, Peru had become among the most attractive countries for new energy initiatives in South America. With Connacher’s financial support and backing, and capitalizing on Mr. Wine’s knowledge, Petrolifera moved quickly and in early 2005 was able to secure an agreement to acquire ownership and operatorship of two significant licenses covering more than five million acres in the Marañon and Ucayali Basins onshore Peru. The formal awards were made later in the year"

Gary Wine advised Petrolifera at the time to acquire Block 106 containing the Maranon Basin in Peru. This Block is comprised of 8,010 square kilometers (1,997,500 acres) which in North America would constitute 87 townships in size. Page 14: “This represents an area of some 70 miles by 45 miles. It surrounds the largest oil field in the Maranon Basin . This field, Corrientes has been assigned recoverable reserves (based on public information as posted on the official website at www.perupetro.com.pe ) of 218 million barrels of ,medium, gravity crude oil. It is operated by a large South American independent company. A pipeline with significant spare capacity approaching 60,000 bbl/d crosses the block before it heads westward to market outlets at the shores of the Pacific Coast. Based on available data and geographical studies, Petrolifera believes the block has significant reserve and resource potential. Of consequence to the prospectivity of the Block is that it is also surrounded by a number of established oil fields which are filled to spill point. Wells drilled in or around the Block encountered excellent reservoirs indicating an attractive per well productivity should hydrocarbons be found. Also, the type of oil which Petrolifera expects to encounter is of sufficient quality to meet pipeline specifications without the necessity of any blending, unlike the heavier oil which has been encountered in the northeast Marañon Basin. The primary objectives in the region are stacked multiple sandstone reservoirs of Cretaceous age. Well depths will be considerable at approximately 10,000 feet and the original well on a prospect in the region could cost up to US$10 million, due to logistics associated with river access, helicopter support and jungle drilling. However, once a discovery is made, based on historical data and for planning purposes, it is expected follow-up well costs drilled from an established development pad would be considerably less, more likely in the range of US$3 million to US$4 million.”

Gary Wine also advised Petrolifera to acquire Block 107 as it is on trend to the Camisea Complex. Page 16 of the 2005 Annual Report shows the potential prospectivity of this Block: “It is on trend with the Camisea complex to the southeast, has highway access (two separate roads) and has the potential for significant accumulations. Importantly, this Block exposes Petrolifera to the potential discovery of huge natural gas and condensate discoveries similar in nature to Camisea. Attributed total reserves at Camisea have been estimated at 16 trillion cubic feet of natural gas and 850 million barrels of natural gas liquids, including condensate (see www.perupetro.com.pe). While geological and geophysical control over the Block is limited, management believes the block has the requisite geological conditions to find similar types of accumulations as well as more conventional prospects for both crude oil and natural gas in the foreland of the Ucayali Basin. The Aguaytia natural gas field with reported reserves of 440 Bcf of natural gas and 20 million barrels of condensate and natural gas liquids is situated just east of the Block and currently produces approximately 65 mmcf/d and 4,400 bbl/d of liquids(see www.aguaytia.com). The gas is used for a cogeneration project while the liquids are shipped to a nearby refinery at Pucallpa in central eastern Peru. "

So this is either all just hype OR Petrolifera is sitting on huge potential. Gary Wine was able to find and develope the oil and natural gas in Argentina for Petrolifera over the last four years. His record speaks for itself. Now he has his sights set on Columbia and Peru.

Best Wishes; Scott