12:10 EDT Tuesday, June 10, 2008

CALGARY, June 10 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX) announced today it has completed an agreement with the major purchaser of its Argentinean crude oil sales volumes, whereby effective June 1, 2008 and including May 2008 sales, which are settled in the subsequent month, Petrolifera will now receive US$47 per barrel of Puesto Morales Medanito crude oil. This represents an increase of approximately US$5.00 per barrel of crude sold into the market. The agreement also anticipates a favored nations provision and further timely adjustments in the event of changes to prevailing export tax provisions in Argentina. The modification reflects the impact of market forces as opposed to any legislative changes in the country.

Furthermore, Petrolifera is scheduled to receive a significant cash payment of a minimum of US$2.50 plus valued added tax ("IVA") for each of the approximately 1.4 million barrels of crude oil which have been delivered to the purchaser since late in 2007, until the new arrangement became effective in 2008. This price improvement and payment for previously delivered crude oil will positively impact on Petrolifera's reported revenue, cash flow and liquidity for the remainder of 2008.

Petrolifera continues to conduct drilling and testing operations in Argentina. Current crude oil sales at Puesto Morales Norte exceed 8,000 bbl/d and oil equivalent sales were 9,028 boe/d in April 2008, compared to 8,180 boe/d year to date in 2008 and approximately 32 percent above April 2007 sales of 6,450 boe/d. Readers are cautioned that all references to barrels of oil equivalent (boe) are calculated on the basis of 6 mcf:1 bbl. Boes may be misleading, particularly if used in isolation. This conversion is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Sales and production increases during the balance of 2008 are anticipated to be derived from the impact of the company's pressure maintenance program at Puesto Morales Norte, anticipated to reach peak influence in the second half of 2009. It is also anticipated that further production and consequent sales increases will derive from continuing development drilling at Puesto Morales Norte and from higher impact exploratory drilling at Puesto Morales Este, Rinconada Norte, Vaca Mahuida and Gobernador Ayalla II, where in total up to 16 gross wells (approximately two new wells per month) are anticipated by year end.

Petrolifera is currently testing the Sierras Blancas Formation in its 1082 well, a deviated exploratory test drilled under the Casa de Piedra water reservoir resulting from the hydroelectric dam on the Rio Colorado. Based on log analysis and shows while drilling, crude oil was indicated to be present in the Sierras Blancas Formation and the deeper Punta Rosada Formation. Despite encouraging indications, the Punta Rosada Formation will not be tested due to hole conditions and evaluation will have to await follow-up drilling activity. The 1082 well is situated approximately 1.25 kilometers southeast of the known limits of the central structure at Puesto Morales Norte, where prolific productivity and significant volumes of oil have been produced from a number of wells, including 1012, 1013 and 1061. Depending upon test results, the 1082 well will be completed and tied in to production facilities once the evaluation is completed. Petrolifera has a 100 percent interest in Puesto Morales Norte and the 1082 well.

Petrolifera also reports that the PME x-1002 well, the second well drilled on the Puesto Morales Este Block, has been completed as a new pool Loma Montosa Zone 2 crude oil discovery. On test and after a frac, the well flowed at a rate of 458 bbl/d of light gravity crude oil through a 20 millimeter choke. This well is approximately 3.5 kilometers north of the PME x-1001 Loma Montosa natural gas well and five kilometers southeast of the central lobe at Puesto Morales Norte. Drilling of this well completes the work program negotiated in conjunction with the awarding of this block. Petrolifera has a 100 percent interest in Puesto Morales Este Block and the PME x-1002 well.

In Colombia, Petrolifera is continuing to finalize its plans to drill two exploratory wells on two separate prospects (La Pinta and Brillante) on its onshore Sierra Nevada I License in the Lower Magdalena Basin. Subject to finalizing rig availability and receipt of the drilling environmental impact assessment ("EIA"), both of which are anticipated to be resolved in the near term, Petrolifera's drilling could be underway on the first of two high impact Colombian locations by mid-August 2008. Applications to convert the company's other landholdings to license status have been submitted and await governmental approval.

In Peru, the seismic program over Block 107 has progressed favorably. As anticipated, numerous sizeable leads and potential prospects have materialized. As a result of this encouragement from the company's seismic program, Petrolifera is in the process of negotiating another concession in the region to complement its existing holdings. Further details will be provided upon completion of negotiations.

Petrolifera Petroleum Limited is a Calgary-based crude and natural gas exploration and production company with significant operated interests in ten blocks in Argentina, Colombia and Peru in South America. These blocks cover approximately seven million acres. Current crude oil and natural gas production is derived from the Puesto Morales/Rinconada Concession in the Neuquén Basin onshore Argentina. The company's capital program for 2008 is anticipated to reach $102 million, with increased expenditures in Colombia and Peru compared to levels in 2007, as new exploration programs are presently underway. Simultaneously, the company is maintaining an active and responsible program in Argentina with a total of close to forty new wells likely to be drilled by Petrolifera by year end 2008.

Forward-Looking Information

This press release contains forward-looking information, included but not limited to future exploration and development opportunities, future drilling plans, anticipated capital expenditures and anticipated increases in production relating to the anticipated completion of the 1082 well and the completion of the PME x-1002 well. Forward looking information is not based on historical facts but rather on Management's expectations regarding the company's future growth, results of operations, production, future capital and other expenditures (including the amount, nature and sources of finding thereof), competitive advantages, plans for and results of drilling activity, environmental matters, business prospects and opportunities. Such forward looking information reflects Management's current beliefs and assumptions and is based on information currently available to Management. Forward looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward looking information, including but not limited to, risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production, delays or changes to 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 environment risks), the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with negotiating with foreign governments and third parties located in foreign jurisdictions and the 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.

Forecast capital expenditures are based on Petrolifera's current budgets and development plans which are subject to change based on commodity prices, market conditions, drilling success and potential timing delays. Petrolifera's capital budget has been prepared based upon anticipated costs for equipment and services which are subject to fluctuation based upon market conditions and availability. Additionally, forecast capital expenditures do not include capital required to pursue future acquisitions. Anticipated production growth is anticipated based on the proposed drilling program with a success rate based upon historical drilling success, sustained productivity of new and existing wells and the expected impact of the company's waterflood program. Indicated flow rates from production testing are not necessarily indicative of sustainable production rates for such wells. Actual production rates may vary for the indicated flow rates based a number of factors including reservoir pressure and quality, and completion techniques.

Although the forward looking information contained herein is based upon assumptions which Management believes to be reasonable, the company cannot assure investors that actual results will be consistent with this forward looking information. This forward looking information is made as of the date hereof and the company assumes no obligation to update or revise this information to reflect new events or circumstances, except as required by law. Because of 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.

For further information: Richard A Gusella, Executive Chairman, Petrolifera Petroleum Limited, Phone: (403) 538-6202, Fax: (403) 538-6225, inquiries@petrolifera.ca, www.petrolifera.ca