PDP Says Hell No We Won't Go!

(BN Americas)

Petrolifera denies reports, to stay in Río Negro - Argentina

Published: Thursday, November 22, 2007 12:20 (GMT -0400)

Calgary-based Petrolifera Petroleum (TSX: PDP) has a positive relationship with Argentina's Río Negro province and is not leaving any of its operations there, company CEO Richard Gusella told BNamericas.

Local press in Argentina speculated Petrolifera could pull out of Río Negro and Argentina in general two days after the company issued a statement affirming its commitment to the region.

"Someone must be trying to undermine our excellent relationship with Río Negro," Gusella said. "We have four rigs working in the province with four service rigs and that sure doesn't look like a midnight escape to me."

Press speculation on a possible pullout began after Petrolifera said it would re-examine its previously announced capex budget for 2008 in the wake of planning minister Julio de Vido's November 15 announcement that exported oil would be capped at US$42/b.

Petrolifera stock fell 18% on Monday and was trading further down at Cdn$10.38 on Thursday.

Petrolifera produces at its 100%-owned Puesto Morales/Rinconada concession in Argentina's Neuquén basin.