Calgary based Petrolifera Petroleum Limited reports steady growth during the first quarter of 2008 with sales up 12 percent and cash flow per share up 14 percent over the fourth quarter of 2007. During the period Petrolifera drilled 16 new wells in Argentina, substantially completed its Puesto Morales Norte production facilities and activated its pressure maintenance program. Since year end, a significant followup well at Rinconada has been drilled, resulting in a Sierras Blancas discovery which, after a frac treatment, flowed light gravity crude oil at approximately 800 bbl/d and is presently producing at a rate of approximately 460 bbl/d through a 10 millimetre choke. Also, the company will shortly be testing several indicated hydrocarbon-bearing zones in its PME x-1002 well. The first well on this block is a Loma Montosa natural gas discovery.
The company anticipates commencing drilling in Colombia during the third quarter 2008. Subsequent thereto and over the ensuing 18 month period, the company plans a continuous program comprised of drilling high impact wells in both Colombia and Peru.
Against a backdrop of regulated energy prices in Argentina and regulatory delays anticipated in Peru to secure approval of the company's drilling Environmental Impact Assessment ("EIA"), Petrolfiera has decided to reduce its capital budget for 2008 to $102 million compared to a previously-announced level of $140 million. This primarily reflects the probable deferral of the startup of drilling in Peru until 2009.
HIGHLIGHTS
- Sales and cash flow growth restored
- Profitability retained despite provision for ABCP impairment
- ABCP headed towards resolution
- Facilities completed, operational at Puesto Morales Norte, Argentina
- Focus moving to plans for Colombian and Peruvian drilling
- High impact Colombian and Peruvian wells anticipated throughout second half of 2008, all of 2009
Production
Petroleum and natural gas sales for the three months ended March 31, 2008 were $27.1 million (three months ended March 31, 2007 - $46.6 million) on sales of 6,726 bbl/d (2007 - 11,333 bbl/day) of crude oil and 7.0 mmcf/d (2007 - 1.9 mmcf/d) of natural gas. The decrease in revenue resulted from lower crude oil pricing and lower crude oil production and sales volumes. These short-falls arose due to delays in the implementation of the company's reservoir pressure maintainance program (water flood), natural production declines and the incursion of water at one of the company's key wells, PMN-1013, offset by improved natural gas sales and prices. All production was from the company's Argentinean properties.