Petrolifera Petroleum Limited (PDP - TSX) announces today that it has secured a new contract over the Puesto Morales Este Concession ("PME Concession") in the Province of Rio Negro, Argentina.

The PME Concession covers an area of 12.8 square kilometers (3,163 acres or approximately five sections) and is situated east of and is contiguous with the southeastern portion of the company's Puesto Morales Block in the Neuquén Basin, Argentina.

The negotiated contract is a one year Exploration License between the Argentinean branch of the company's subsidiary, Petrolifera Petroleum (Americas) Limited and Edhipsa, the provincial oil company of Rio Negro. The Exploration License can be converted into a 25 year production license upon the establishment of commercial production. The royalty rate has been established at 24 percent.

Under the terms of the contract, Petrolifera is committed to the drilling of a minimum of two exploratory wells, each to a minimum depth of 1,500Â meters, additional optional 3D seismic and other obligations, including some agreed training costs for Edhipsa personnel. The total amount of the negotiated work commitment has been calculated at US$10.6 million.

Petrolifera advised that drilling is already underway on a seismically-defined structure on the block. The PME X-1001 well, which is currently at a depth of 189 meters, is targeted to be drilled to a projected total depth of 1,640 meters to evaluate various formations, including the Sierras Blancas Formation, which is the prolific producing zone at Puesto Morales Norte.

Petrolifera is a Calgary based crude oil and natural gas exploration, development and production company. It holds approximately 497,000 acres of exploratory and production rights in Argentina, and is currently producing in excess of 9,000 boe/d of crude oil, natural gas and natural gas liquids at Puesto Morales. The company also holds 1.2 million acres of exploratory rights in Colombia and over 5.2 million acres under two licenses onshore Peru, where it is conducting seismic on its Ucayali Block 107 in preparation for drilling anticipated for later in 2008.

Forward-Looking Information

This press release contains forward-looking information, including but not limited to future exploration and development plans in respect of the PME Concession and anticipated work commitments in respect of the PME Concession. 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. There can be no assurance that the PME X-1001 well will encounter hydrocarbons capable of commercial production or that the exploration license will be converted into a prod uction license. 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. A barrel of oil equivalent (boe) is derived by converting natural gas to oil in the ratio of six thousand cubic feet of natural gas to one barrel of oil and 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.

SOURCE: Petrolifera Petroleum Limited

Richard