Colombia:
The La Pinta 1 exploration well is now anticipated the well will be drilled to a final total depth of about 11,000 feet. Petrolifera Petroleum continues to be encouraged by results encountered during the drilling of the La Pinta 1 well, based on hydrocarbon mud log shows and the interpretation of intermediate logging runs. The drilling of the well is significantly behind the originally anticipated schedule, due to problems which were encountered, firstly while attempting to run the 9 5/8th inch intermediate casing in the upper section of the wellbore and subsequently, challenges arising from instability in the lower section of the well.
The former problem in the upper part of the well was resolved and the instability in the lower section of the wellbore now appears to be under control. Due to the downhole instabilities, it has been decided to attempt to complete the well at a depth of 11,000 feet instead of the originally planned depth of 13,000 feet. An application in this regard has been submitted to ANH, the Colombian government agency that regulates such activity and a decision is anticipated shortly. Petrolifera Petroleum’s management believes that all the geological objectives of the well and contractual obligations of the license will be met with the well terminating at a depth of 11,000 feet. Further evaluation is anticipated to occur by testing, after the well is logged and the bottom portion of the wellbore is cased.
Peru:
In May 2009, in accordance with the contract terms of block 107, Petrolifera Petroleum will be relinquishing about 1.6 million acres, or about one half of the original 3.2 million acres which comprised block 107. Petrolifera Petroleum believes it will be retaining the most prospective acreage under block 107, based on its interpretation of the 950 kilometer 2D seismic program acquired over the acreage by the company in 2007 and 2008. After the required relinquishment and the award of block 133, Petrolifera Petroleum will control about 4.5 million acres in Peru.
Argentina:
As of mid-April 2009, Petrolifera Petroleum has drilled and completed five wells on the Gobernador Ayala II (GA II) concession and is very encouraged by the results to date, based on hydrocarbon shows and limited testing results. Petrolifera Petroleum anticipates drilling up to an additional five wells on this block before the expiry of the exploration phase. A request has been submitted to the government of La Pampa to convert the GA II concession from an exploratory to a production status.
