Petrolifera Petroleum Limited (PDP - TSX) announces today that the estimates of the company's 1P ("proved"), 2P ("proved and probable") and 3P (proved, probable and possible) reserves, as prepared by GLJ Petroleum Consultants of Calgary, Alberta ("GLJ") in a report with an effective date of December 31, 2007 ("GLJ 2007 Report"), confirmed the significant positive impact of 2007 drilling activity and the installation of new production facilities, including a waterflood, at its Puesto Morales Norte Field in the Neuquén Basin, Argentina.

The GLJ Report and the estimates provided herein were prepared using assumptions and methodology guidelines outlined in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and in accordance with National Instrument 51-101 ("NI 51-101"). Comparisons provided herein with respect to Petrolifera's reserves are to estimates contained in a report prepared by GLJ with an effective date of December 31, 2006 ("GLJ 2006 Report"). The GLJ 2007 Report was prepared utilizing the GLJ January 1, 2008 price forecast, effective December 31, 2007 and adjusted to Petrolifera's asset mix and specific pricing circumstances in Argentina. In the GLJ 2007 Report, future net revenue is calculated after deduction of forecast royalties, operating expenses, capital expenditures and well abandonment costs but before corporate overhead or other indirect costs, including interest and income taxes. The present value of future net revenue ("present value") is calculated by GLJ using various discount rates; this release will provide undiscounted future net revenue and the 10 percent present value thereof.

All references to barrels of oil equivalent ("boe") are calculated on the basis of 6 mcf: 1 bbl. Readers are cautioned that the conversion used in calculating barrels of oil equivalent is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Furthermore, boes may be misleading if used in isolation. Future net revenues disclosed herein do not represent fair market value. Also, estimations of reserves and future net revenue to be discussed in this press release constitute forward-looking information. See "Forward Looking Information" below.

Reserve Volumes and Values

The GLJ 2007 Report estimated that Petrolifera's 1P crude oil and natural gas liquids ("NGL") reserves increased 43 percent to 15.1 million barrels as at December 31, 2007, compared to 10.5 million barrels at December 31, 2006. The increase reflects exploratory success and technical revisions primarily arising from the company's capital spending and drilling program during the year. The increase occurred after record production of 2.9 million barrels of crude oil during the year. On a 1P basis, the company's reserve replacement ratio for crude oil and NGL was 2.6 times. The reserve replacement ratio percent was calculated by dividing the sum of production volumes for the year and changes to estimated reserves volumes during the year by the production volumes.

Petrolifera's 1P natural gas reserves increased 14 percent to 16.3 Bcf after the production of 0.8 Bcf and technical revisions, including provision for flared natural gas volumes, with a reserve replacement ratio of 3.5 times, calculated as indicated above.

Despite the substantial movement of probable reserves to the 1P category, Petrolifera's 2P crude oil and NGL reserves increased 10 percent to 21.5 million barrels, reflecting exploratory success. At December 31, 2007, 2P crude oil and NGL reserves were 21.5 million barrels compared to 19.5 million barrels last year. On a 2P basis, the company's reserve replacement ratio for crude oil and NGL was 1.7 times, calculated as indicated above.

On an equivalent basis, Petrolifera's 1P reserves totaled 17.8 million boe in 2007 compared to 12.9 million boe in 2006, for an increase of 38 percent. These reserves were forecast to generate $456 million of future net revenue, with a 10 percent present value of $314 million, after deduction of $18.6 million of future capital and $2.2 million of well abandonment costs. The 10 percent present value for the 2007 1P estimates represents a 27 percent increase over 2006. Reserve replacement for 1P on a boe basis was 2.6 times.

On an equivalent basis, Petrolifera's 2P reserves total 25.6 million boe in 2007 compared to 24.3 million boe in 2006 for an increase of five percent, after production of 3.0 million boe. GLJ estimates these reserves will generate $662 million of future net revenue, with a 10 percent present value of $452 million after deduction of $34.4 million of future capital expenditures and $2.8 million for future well abandonment costs. The 10 percent present value for the 2007 2P estimates represents only a one percent increase over 2006, due primarily to changes in Argentinean pricing and taxation policies during 2007. Reserve replacement for 2P on a boe basis was 1.4 times. The company's calculated reserve life index, calculated by dividing remaining 2P reserves at December 31, 2007 by 2007 total boe production, was 8.5 years.

Petrolifera also commissioned GLJ to provide an estimate of possible reserves, which were last estimated effective December 31, 2005 by another independent reserve evaluator. GLJ estimates the company's 3P crude oil and NGL reserves to be 33.5 million barrels, with natural gas reserves estimated at 33.5 Bcf and equivalent reserves estimated at 39.0 million boe. These reserves are estimated to generate $1 billion of future net revenue with a 10 percent present value of $656 million, after deduction of $72.9 million of future capital expenditures and $3.6 million for future well abandonment costs.

It should be noted that the estimate of Petrolifera's 3P reserves at 39.0 million boe is after the production of approximately 5.3 million boe in 2006 and 2007. This is the first updated estimate of possible reserves since 2005. The volume of possible reserves underscores the recognition of the development potential for both crude oil and natural gas, of the lands reviewed in the GLJ 2007 Report, which however did not include a review of the company's undeveloped exploratory concessions at Vaca Mahuida, Puesto Guevara, Puesto Morales Este and Gobernador Ayalla II, all in Argentina nor of Petrolifera's holdings in Colombia and Peru.

The following tables summarize the information contained in this press release. Tables may not add due to rounding.

    <<
    Petrolifera Petroleum Limited
    Crude Oil, NGL and Natural Gas Reserves (1)(2)(3)(4)
    -------------------------------------------------------------------------
                          OIL & NGLs (mbbl)            NATURAL GAS (mmcf)
    Reserve
    Category              31-Dec-07  31-Dec-06         31-Dec-07  31-Dec-06
    -------------------------------------------------------------------------
                                           %                            %
                          GLJ      GLJ   change        GLJ      GLJ   change
    Proved (1P)        15,068   10,522     43       16,281   14,256     14
    Probable            6,452    9,012    (28)       7,992   14,544    (45)
    -----------------------------------           ------------------
    Proved plus
     Probable (2P)     21,520   19,534     10       24,273   28,800    (16)
    Possible           11,940      n/a    n/a        9,187      n/a    n/a
    -----------------------------------           ------------------
    Proved plus
     probable plus
     possible (3P)     33,460      n/a    n/a       33,460      n/a    n/a
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                          BOE's (mboe)
    Reserve
    Category              31-Dec-07  31-Dec-06
    ------------------------------------------------
                                           %
                          GLJ      GLJ   change
    Proved (1P)        17,782   12,898     38
    Probable            7,783   11,436    (32)
    -----------------------------------
    Proved plus
     Probable (2P)     25,566   24,334      5
    Possible           13,471      n/a    n/a
    -----------------------------------
    Proved plus
     probable plus
     possible (3P)     39,037      n/a    n/a
    ------------------------------------------------



    Petrolifera Petroleum Limited
    Before Tax Present Value of Future Net Revenue (1)(2)(3)(4)
    -------------------------------------------------------------------------
                             Before Tax Present Value at 31-Dec-07
    Reserve Category         Undiscounted                  Discounted at 10%
    -------------------------------------------------------------------------
                                     $000                               $000
    Proved (1P)                  $456,309                           $314,273
    Probable                      205,818                            137,780
                               ----------------------------------------------
    Proved plus Probable (2P)    $662,127                           $452,053
    Possible                      368,947                            203,641
                               ----------------------------------------------
    Proved plus probable
     plus possible (3P)        $1,031,074                           $655,694
    -------------------------------------------------------------------------

    Notes:
    1) Proved reserves are those reserves that can be estimated with a high
       degree of certainty to be recoverable. There is at least a 90%
       probability that the actual remaining quantities recovered will equal
       or exceed the estimated proved reserves.
    2) Probable reserves are those additional reserves that are less certain
       to be recovered than proved reserves. It is equally likely that the
       actual remaining quantities recovered will be greater or less than the
       sum of the estimated proved plus probable reserves.
    3) Possible reserves are those additional reserves that are less certain
       to be recovered than probable reserves. There is at least a 10%
       probability that the quantities actually recovered will be equal to or
       exceed the sum of proved plus probable plus possible reserves.
    4) Volumes, future net revenue and present value of future net revenue do
       not include undeveloped land values in Argentina, Colombia or Peru.
    >>

Forward Looking Information

This press release contains forward-looking information, including but not limited to estimated reserves and future net revenues, and future capital expenditures. The information is based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially 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. Additional risks and uncertainties are described in the company's Annual Information Form which is filed on SEDAR at www.sedar.com.

The reserves and future net revenue in this press release represent estimates only. The reserves and future net revenue from the company's properties have been independently evaluated by GLJ with effective dates of December 31, 2007 and December 31, 2006, respectively. This evaluation includes a number of assumptions relating to factors such as initial production rates, production decline rates, ultimate recovery of reserves, timing and amount of capital expenditures, marketability of production, future prices of crude oil and natural gas, operating costs, abandonment and salvage values, royalties and other government levies that may be imposed during the producing life of the reserves. These assumptions were based on price forecasts prepared by GLJ for use as at the dates of these reports and many of these assumptions are subject to change and are beyond the control of the company. Details of these assumptions will be contained in the company's Annual Information Form for the year ended December 31, 2007. Actual production, sales and cash flows derived therefrom will vary from the evaluation and such variations could be material. The present value of estimated future net cash flows referred to herein should not be construed as the current market value of estimated crude oil and natural gas reserves attributable to the company's properties.

Due to the risks, uncertainties and assumptions inherent in forward-looking information, prospective investors in the company's securities should not place undue reliance on this forward-looking information. Forward looking information contained in this press release are made as of the date hereof and are subject to change. The company assumes no obligation to revise or update forward looking statements to reflect new circumstances, except as required by law.

SOURCE: Petrolifera Petroleum Limited

Richard A Gusella, Executive Chairman, Petrolifera Petroleum Limited, Phone: (403) 538-6201, Fax: (403) 538-6225, inquiries@petrolifera.ca, www.petrolifera.ca