Connacher Oil & Gas Ltd CLLZF

NEWS on PDP

[good2004]

Attention Business Editors: Petrolifera announces another successful well in Argentina, updates production information CALGARY, Aug. 29 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX) announced today that the RN.PM a-1013 well on its 100 percent-owned Puesto Morales/Rinconada concession in the Neuquén Basin onshore Argentina is an indicated crude oil discovery. During drilling, the 1013 well, which is located approximately one-half mile southeast of the 1002 discovery well, penetrated a thick continuous hydrocarbon-bearing Sierras Blancas zone similar to that encountered in the 1002 and 1012 wells. Based on log analysis, the zone exhibits excellent porosity and the well is scheduled to be cased and will be tested and completed for production during the next several days, as soon as the service rig under contract completes a procedure at the 1001 La Ramona location situated west of the current region of activity. The 1013 well also encountered several hydrocarbon-bearing zones in the Loma Montosa or Quintuco Formation which will be evaluated at a later date. Cores to be evaluated over the next several days were also taken in the Quintuco and Sierras Blancas Formations. The drilling rig will now be moved to the RN.PM a-1015 location, a southerly stepout to the 1010 well. Petrolifera also advises that total production at Puesto Morales reached 8,992 bbl/d of light gravity crude oil on August 28, 2006. Included in that total was production of 2,376 bbl/d with no water through a 16 millimeter choke from the recently-completed 1012 well. Water cuts at the six 2005/2006 wells which are productive in either or both the Sierras Blancas and Punta Rosada Formations range between zero percent at 1012 to one percent at 1002 and are generally closer the lower limit. Field operations to install new facilities, including a pipeline to connect to a regional carrier to transport crude oil to available markets in and around Buenos Aires, Argentina remain on track for an October startup at this writing. This should contribute to lower overall operating costs, already very low at under $5.00 per barrel despite trucking costs presently being incurred to move oil to offsite treatment facilities. Additionally, the company anticipates being able to retain the flexibility of trucking crude oil to supplement deliveries through its new pipeline, should productive capacity continue to expand with successful drilling. Petrolifera Petroleum Limited is a public Canadian oil and natural gas exploration and production company based in Calgary, Alberta. It owns 100 percent of the productive Puesto Morales/Rinconada Concession in the Neuquén Basin onshore Argentina and plans to drill approximately twenty wells on the block prior to year end 2006. Two of these wells, 1012 and 1013, have now been drilled. The company presently produces approximately 9,000 bbl/d of light crude oil, primarily from five wells on the Concession. An extensive 3D seismic program over the remainder of the two blocks which comprise the Concession not presently covered with modern seismic is also planned prior to year end and permanent facilities, including a new pipeline, are presently under construction. Petrolifera was recently confirmed as the successful bidder on the one million acre Salinas Grande 1 Block, situated immediately north of the Rinconada Block which comprises a portion of the Puesto Morales/Rinconada Concession. Petrolifera also owns 100 percent of and operates two licenses covering over five million acres onshore Peru. An extensive aeromagnetic and gravity survey over the entirety of Block 107 in the Ucayali Basin is scheduled to commence imminently. This press release contains forward-looking statements, including but not limited to a planned drilling program. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to, risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses and health, safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with negotiating with foreign governments and risk associated with international activity. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in the company's securities should not place undue reliance on these forward-looking statements. For further information: contact: Richard A Gusella, Executive Chairman, Petrolifera Petroleum Limited, Phone: [phone], Fax: [phone], [e-mail], www.petrolifera.ca