PDP:TSX Octagon Securities Calls For $30.00

When anonymous is biggest buyer I would not be a seller ,

This is ALWAYS Pro Trader accumulation prior to news.

Retail players who are selling today will be sorry that they did.

BUY: Petrolifera Petroleum Ltd.
PDP-TSX: $14.95
Target: $30.00
Warren Verbonac
(403) 750-0497· wverbonac@octagoncap.com
Activity Update
• According to yesterday’s release, Petrolifera’s production in the current
quarter (Q3/07) of 7,563 boed is down from that of the Company’s last
release, of 8,890 boed (with productive capability at that time of over 9,600
boed).
• Our previous Q4/07 production estimate of 15,000 boed has been reduced to
10,000 boed, cutting estimated cash flow by $0.35 to $1.72 for 2007.
• Having had a series of production misses and setbacks during the last two
quarters, Petrolifera has decided to stop providing operating and financial
guidance, and has termed the Puesto Morales field as “at a very advanced
stage” – presumably, production may have peaked from this field.
• The Puesto Morales and Rinconada concession comprises less than 10% of
the Company’s net acreage in Argentina’s Neuquen Basin, which still
provides substantial ongoing drilling opportunities.
• Due to rig availability issues, 11 more locations are expected to be drilled by
year‐end, 10 locations short of the original target.
• Q3 results are expected November 6, including an update on the status of
the $37.7 million in asset backed commercial paper held by the Company.
• We continue to regard Petrolifera’s exploration inventory as one of the most
prospective of any junior. With the first drilling in Peru expected soon, there
is tremendous potential.

We are thus maintaining our BUY recommendation
and $30.00 target price.

Connacher Oil and Gas Limited of Calgary, Alberta was responsible for the creation and financing of Petrolifera and remains the single largest shareholder (13.3 million shares on a fully-diluted basis) Connacher also provides management services to Petrolifera.

Visit Connacher Oil and Gas Limited:
www.connacheroil.com