Petrolifera to begin La Pinta testing on June 6
2009-06-05 09:12 ET - News Release
Mr. R. A. Gusella reports
TESTING OF PETROLIFERA'S LA PINTA WELL IN COLOMBIA TO COMMENCE JUNE 6, 2009; DEADLINE FOR ARGENTINA BIDS EXTENDED TO JULY 10, 2009 AT REQUEST OF PROSPECTIVE PURCHASERS
Petrolifera Petroleum Ltd.'s testing of its La Pinta No. 1 well on the Sierra Nevada licence in Colombia is anticipated to commence on June 6, 2009.
It is expected that the complete testing program will require between seven and 10 days, after which the rig will be released from the La Pinta No. 1 location. Results will be communicated by way of press release when they are conclusive and testing is completed.
The company also announced that at the request of a number of interested parties, the deadline for submission of bids related to the potential purchase of Petrolifera's Argentinian operations has been extended until July 10, 2009.
We seek Safe Harbor.
ARGENTINA Assets:
Petrolifera had a busy and productive first quarter of 2009 in Argentina. The principal event was the decision taken to initiate a process to dispose of the company’s Argentinean operations. This decision was not taken
lightly as Petrolifera had fared well in Argentina, while clearly being a strong corporate citizen during an approximate four year period from 2005 to the present. During this time, the company made a number of significant discoveries which added considerable reserves, production and sales. These also resulted in the
payment of considerable royalties and income taxes during this period. We also enhanced shareholder value and our success in Argentina and strong reinvestment program contributed to job and wealth creation for the Province of Rio Negro and the Country of Argentina. Nevertheless, with worldwide capital sources now constrained and numerous prospects of greater magnitude available to Petrolifera in Peru and Colombia, we determined an exit was the best alternative at this time, provided a suitable and fair price could be secured from a purchaser intent on recognizing and realizing the remaining considerable potential of Petrolifera’s holdings in
the country.
We retained Tristone as our advisor in the process and anticipate opening the data room in mid-May 2009 and receiving proposals on or about June 18, 2009. Thereafter offers will be assessed and with Tristone’s assistance,
we will determine which, if any, of the submissions meet our objectives.
We are hopeful the operations can be sold as a going concern in order to maximize employment opportunities for our Argentinean staff, both in Buenos Aires and in the field at Puesto Morales Norte. We also anticipate that
our recent success at Gobernador in identifying what could prove to be a significant heavy oil resource (approximately 19 degree API crude oil) will influence the sales process.
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