Press Release Source: Petrolifera Petroleum Limited

Petrolifera Petroleum commences second round of drilling in Argentina
Tuesday August 1, 8:57 am ET

CALGARY, Aug. 1 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX) announced today that the Pride 350 drilling rig arrived on location on Monday, July 31, 2006 and that drilling operations are underway at the RN.PM a-1012 well, which is a westerly offset to the RN.PM-x 1002 discovery drilled in late 2005.

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Petrolifera anticipates drilling approximately 20 wells on its Puesto Morales/Rinconada concession prior to year end 2006. The primary objective of the wells will be to evaluate the oil-bearing potential of the Sierras Blancas and Punta Rosada Formations, although all wells will penetrate the Quintuco Formation, which is also hydrocarbon-bearing in the region. A second drilling rig is scheduled to arrive in October 2006.

Petrolifera expects to report its second quarter and first half 2006 operating and financial results on August 8, 2006.

Petrolifera is a Calgary-based oil and natural gas exploration and production company. It owns 100 percent of the Puesto Morales/Rinconada concession in the Neuquén Basin onshore Argentina. The company also owns 100 percent of and operates over 5 million acres in two licenses in the Maranon and Ucayali Basins onshore Peru. The company is currently producing between 6,500 and 7,000 bbl/d of light crude oil, primarily flowing through restricted chokes from four wells situated on its concession in Argentina. Expanded permanent facilities, including a new pipeline, are presently under construction with a targeted startup around October, 2006.

This press release contains forward-looking statements, including but not limited to the planned drilling program, flow rates and operating costs. 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

R. A. Gusella, Executive Chairman, Petrolifera Petroleum Limited, Phone - (403) 538-6201, Fax - (403) 538-6225,, [email protected]

Source: Petrolifera Petroleum Limited