Petrolifera Petroleum Limited conducts its operations in three countries in South America,
namely Argentina, Peru and Colombia. Our properties were acquired in these regions in a
sequential manner, with our acreage in Argentina forming the initial asset base of the company.
Shortly after its formation, Petrolifera secured two significant concessions in Peru and then
in late 2006, we embarked on a program to expand into Colombia, which we have done
successfully with our current holdings in the Lower and Middle Magdalena Basins. We believe
our current inventory of assets provided us with a balanced exposure to risk and reward.
Our original properties in the Neuquén Basin, Argentina were the foundation of the company when it was created. Through the application of new geological concepts and using 3D seismic, we were able to make the significant crude oil, natural gas and natural gas liquids discovery of the Puesto Morales Norte Field (“PMN”).

Production and subsequent sales from this Field have constituted the backbone of our revenue and cash generating capacity. Subsequently, we have added to our exploratory land position in Argentina and during 2008 we made three new pool discoveries on our acreage and continued to prepare for new drilling on our Gobernador Ayala II, Vaca Mahuida and Puesto Guevara Concessions. At year end 2008, we held almost 500,000 gross acres of lands in Argentina. Subsequent to year end, we announced a decision to sell our position in Argentina to focus on Colombia and Peru.