16:35 EDT Wednesday, August 12, 2009

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CALGARY, Aug. 12 /CNW/ - Petrolifera Petroleum Limited (the "Corporation" or "Petrolifera" - PDP - TSX) is pleased to announce that it has filed a preliminary short form prospectus in each of the provinces of Canada, other than Québec, in connection with a public offering (the "Offering") of units ("Units") of Petrolifera for aggregate gross proceeds of up to $50 million. Each Unit will consist of one common share in the capital of the Corporation (each, a "Common Share") and one-half of one Common Shares purchase warrant of the Corporation (each whole Common Share purchase warrant, a "Warrant"). The Offering will be conducted through a syndicate of underwriters (the "Underwriters") which will be led by Thomas Weisel Partners Canada Inc., Cormark Securities Inc. and RBC Capital Markets. Pursuant to the terms of the Offering, the Corporation has agreed to grant the Underwriters an over-allotment option to purchase additional Units equal to up to 15% of the Units sold pursuant to the Offering, exercisable at any time, in whole or in part, up to 30 days from the closing of the Offering.

The Offering will be priced in the context of the market with the final terms of the Offering, including the terms of the Warrants, to be determined at the time of pricing. The net proceeds of the Offering will be used by the Corporation to fund a portion of its exploration capital expenditure program, primarily in Colombia during the balance of 2009 and into 2010, to reduce indebtedness relating to the Corporation's reserve-backed credit facility and for working capital.

The Units will be sold publicly in each the provinces Canada, other than Québec, on a private placement basis in the United States pursuant to exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended (the "1933 Act"), in the United Kingdom in accordance with applicable local securities legislation and regulations such that no prospectus, registration statement or similar document is required to be filed in any such jurisdiction and such other jurisdictions as may be agreed to by the Corporation and the Underwriters. The Offering is scheduled to close on or about August 28, 2009 and is subject to certain customary conditions and regulatory approvals, including but not limited to the approval of the Toronto Stock Exchange."

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I expect that Petrolifera shares will be selling at a discount of 15-20% by the time that the price is finally decided on around August 28th and my expectation is that the shares will sell for around 80 cents Canadian a share.

Best Wishes; Scott