Petrolifera Petroleum Limited secures drilling rig

Petrolifera Petroleum Limited secures drilling rig for upcoming Colombia and Peru drilling campaignscnwCALGARY, Aug. 11 /CNW/

- Petrolifera Petroleum Limited (PDP - TSX) announced today it has signed a letter of intent with Petrex S.A ("Petrex") whereby Petrex has agreed to provide a heli-transportable drilling rig for a 24 month period from commencement of well operations in Colombia with an option for a further 12 month period. The formal contract is currently being finalized and rig mobilization is expected to begin shortly, with a view to being on location at the La Pinta prospect, situated within the Sierra Nevada I License in the Lower Magdalena Basin onshore Colombia, on or before September 30, 2008.

It is anticipated it will take 75 to 90 days to drill the La Pinta well. Thereafter, Petrolifera plans to drill the Brillante prospect on the same license.After completion of the initial two well drilling program in Colombia, Petrolifera anticipates it will mobilize the rig to Peru for the drilling of the company's first Peruvian exploratory well, currently anticipated to be drilled on Block 107 in the Ucayali Basin onshore Peru.

Petrolifera Petroleum Limited is a Calgary-based crude and natural gas exploration and production company with significant operated interests in ten blocks in Argentina, Colombia and Peru in South America. These blocks cover approximately seven million acres. Current crude oil and natural gas production is derived from the Puesto Morales/Rinconada Concession in the Neuquen Basin onshore Argentina.

The company's capital program for 2008 is anticipated to reach $108 million, with increased expenditures in Colombia and Peru compared to levels in 2007, as new exploration programs are presently underway. Simultaneously, the company is maintaining an active capital expenditure program in Argentina.

Pescod says

Friday is one of those days

At noon: Oil, the new bear

Friday, August 08, 2008
Friday is one of those days when it pays to overlook the carnage in Canada and instead focus on those money-losing investments in the United States, which are now looking up.
The S[amp]amp;P/TSX composite index was down 78 points, to 13,307, at midday – an improvement from more severe losses at the start, but still a dismal showing after you factor in the lower Canadian dollar. The loonie fell below 93.7 cents (U.S.), down 1.3 cents as the U.S. dollar took flight against a number of global currencies.

Among Canadian stock market subindexes, materials were the biggest drag, falling 3 per cent thanks to a poor showing from Potash Corp. of Saskatchewan Inc. and a number of gold producers. Potash Corp. fell 3.2 per cent and Barrick Gold Corp. fell 1.9 per cent. Gold traded at $855 an ounce, down $18 – representing a 15 per cent decline from its record high this year.

Meanwhile, Canada's energy subindex fell 2.8 per cent, with the price of crude oil falling further into bear market territory, defined as a drop of 20 per cent or more. Oil traded at $116.13 a barrel, down $3.89, or 21 per cent, below its high. The recent decline has erased all of the gains since early May.

In the United States, though, the surging dollar and plunging price of oil have been good news for the stock market. The Dow Jones industrial average rose 195 points, to 11,626. The broader SP 500 rose 17 points, to 1283.

There, economically sensitive consumer discretionary stocks led the way, up 3.8 per cent. Energy-sensitive industrials rose 2.7 per cent. However, the gains were widespread: 82 per cent of the stocks in the S[amp]amp;P 500 were in positive territory, while 27 of the 30 stocks in the
Dow were up.

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Schachter says...