Petrolifera Petroleum reports Q1 2009 results and schedules Conference Call May 7, 2009, 9:00 a.m. MDT; Company encouraged by drilling results and logs; Testing of La Pinta well in Colombia anticipated to be completed in a timely manner
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CALGARY, May 6 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX) is pleased to report our first quarter 2009 ("Q1 2009") operating and financial results to our shareholders, together with comparative information from last year.
Petrolifera's high impact drilling program began in January 2009, with the spudding of its La Pinta No.1 well on the Sierra Nevada License in the Lower Magdalena Basin onshore Colombia. We also control extensive contiguous acreage under what was previously the Magdalena Technical Evaluation Agreement ("TEA"), which is in the process of being converted to a License. The La Pinta well was recently logged and cased after being drilled to a final total depth of 11,250 feet. Results while drilling have been encouraging and were further confirmed by logs. A testing program will begin as soon as possible and when completed, results will be communicated by way of press release.
On March 2, 2009 Petrolifera announced its intention to commence a process to sell its Argentinean operations. All of the company's current production, a significant portion of its reserves and extensive undeveloped acreage is held in Argentina, where assets continue to hold promise and upside potential, which is of importance to a prospective purchaser. We retained Tristone Capital Inc. ("Tristone") to manage the process for the company. Data rooms are anticipated to open in mid-May 2009 with a view to offers being submitted for consideration by June 18, 2009. It is our objective to sell our Argentinean operations as a going concern to maximize continuing employment opportunities for our in-country employees. It is anticipated the sale will proceed if suitable and acceptable proposals are forthcoming and all requisite approvals are obtained. The expressions of interest in the process have been plentiful and from companies and enterprises operating from a variety of jurisdictions, including Argentina. If a transaction were completed, funds would be deployed in our high impact exploration and evaluation programs in Colombia and in Peru and to discharge related reserve-based indebtedness.
These Q1 2009 results will be subject to a Conference Call event at 9:00 a.m. MDT May 7, 2009. To listen to or participate in the live conference call please dial either (416) 644-3434 or (800) 814-4857. A replay of the event will be available from May 7, 2009 at 11:00 a.m. MT until May 15, 2008 at 11:59 p.m. MT. To listen to the replay please dial either (416) 640-1917 or 877-289-8525 and enter the passcode 21305120 followed by the pound sign.
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Highlights for the period were as follows:
- Petrolifera announced its intention to enter into a process to sell
its operations in Argentina
- A successful multi-well heavy oil drilling program was initiated on
the company's 100 percent owned Gobernador Ayala II Concession in La
Pampa Province, Argentina, which could favorably impact on the sales
efforts and pricing prospects
- High potential drilling commenced in Colombia with La Pinta No.1, now
an indicated discovery based on results while drilling and logs;
testing is anticipated to be completed in a timely manner
- Seismic programs were completed on Block 106 in Peru and on our
Turpial Concession in the Middle Magdalena Basin, Colombia
- We are nearing completion of the conversion of the Magdalena TEA to
License status; this extensive land block adjoins the Sierra Nevada
Concession in the Upper Magdalena Basin of Colombia
- Preparations for drilling on Block 107 in the Ucayali Basin, Peru
were initiated; mandatory acreage relinquishment on Block 107 was
determined and submitted for approval; new license on Block 133,
offsetting Block 107 to the west was secured, enhancing Petrolifera's
landholdings in the region
- Solid cash flow, profitability and favorable commodity pricing
realized in Argentina during Q1 2009
- Plan of Arrangement for asset backed commercial paper restructuring
completed; related line of credit expanded to $28.2 million and
borrowings reclassified as long term, which improved working capital
and enhanced liquidity
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