I nvestor Update Summer 2007 2 Forward Looking Statements Forward - - PDF document

I nvestor Update Summer 2007

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Forward Looking Statements

Forward looking statements are not based on historical facts but rather on Management expectations regarding the Corporation’s future growth, reserves estimates, results of

• perations, 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 statements reflect Management’s current beliefs and assumptions and are based on information currently available to Management. Additionally, certain information relating to the reserves associated with Corrientes Field and the Camisea Field is based on publicly available information that has not been independently verified by the corporation. Forward looking statements involve 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 statements including risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities, the risk discussed under “Risk Factors” contained in the public disclosure documents of the corporation available at www.sedar.com, and other factors, many of which are beyond the control of the Corporation. Assumptions relating to the GLJ Reserve Report Summary are contained in the Corporation's Annual Information Form for the year ended December 31, 2006. Although the forward looking statements contained herein are based upon assumptions which Management believes to be reasonable, the Corporation cannot assure investors that actual results will be consistent with these forward looking statements. These forward looking statements are made as of the date hereof and the Corporation assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. Because of the risks, uncertainties and assumptions inherent in forward looking statements, prospective investors in the Corporation’s securities should not place undue reliance on these forward looking statements. A barrel of oil equivalent (boe) is derived by converting gas to oil in the ratio of six thousand cubic feet of gas to oil and may be misleading, particularly if used in isolation. A boe 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.

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• Richard Gusella – Executive Chairman

– President and CEO of Connacher Oil and Gas Limited; – Extensive international and domestic management experience

• Gary Wine – President

– International Geologist – 30 years experience in international and US exploration/exploitation

• Group Leader, Basin Analysis Group for Perupetro in Lima Peru (00-04)

& Argentina Consultant - Connacher (03-04)

• Exploration Manager - Norcen in Buenos Aires, Argentina (93-96)
• Kristen Bibby – VP Finance

– Seven years international accounting and finance experience – Most recently Controller, Bow Valley Energy Limited – Previous exposure to South America

• Carlos Mombru – General Manager, Argentina
• Carlos Monges – General Manager, Peru

Senior Management

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PETROLI FERA – The Company

• Public Canadian Oil and Gas Company operating

in South America

• I PO completed Fall 2005 – only public financing
• Listed on TSX under the symbol PDP on November

8, 2005

• 26% -Owned (basic) by Connacher Oil and Gas

Limited

• A Canadian oil and gas exploration company with

interests in oil sands, conventional oil and gas projects and refining in the United States

• Three main focus areas:
• ARGENTI NA
• PERU
• COLOMBI A

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• Shares outstanding – 50 Million basic (@31/ 03/ 07)

– 53.4 Million fully diluted (0.3MM warrants, 3.1 MM options)

• Market Capitalization – $950 Million basic; $1 Billion (f/ d)
• Working capital at May 31, 2007 – $72 Million
• Cash – $63 Million
• No debt; finalizing US$60 Million revolving facility
• Oil production – was 1,400 bbl/ d on Jan 4, 2006

– Q1 2007 average 11,333 bbl/ d – Curtailed in Q2 pending waterflood

• Cash flow – 2006 - $52 Million ($1.34/ sh)

– Q1 2007 - $25 Million ($0.56/ sh)

PETROLI FERA Metrics

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Production History (boe/ d)

Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Natural Gas Crude Oil & NGLs 287 316 296 538 2,062 4,203 7,412 10,900 11,643

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Revenue, Cash Flow and Earnings ($000)

8,452 18,821 33,157 45,153 47,122 73 56 3,435 9,470 18,384 21,077 24,615 5

• 184

1,543 7,685 15,683 14,983 15,069 1,485 517 477 385 228 77

• 161
• 75

Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Revenue Cash Flow Earnings

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Cash Flow and Earnings Per Share ($)

0.00 0.00 0.10 0.25 0.46 0.53 0.56 0.00

• 0.01

0.04 0.21 0.39 0.38 0.34 0.01 0.01

• 0.01

0.00

Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Cash Flow Earnings

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TSX:PDP Chart @ 10/ 07/ 2007

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Objective

• Build a world class South American oil and gas

producer

Strategy

• Secure a low-risk production base
• Balance with risk-adjusted exposure to company-

maker projects

• Capitalize on management technical and deal-making

expertise in selected areas

• Leverage ground floor opportunities to fuel growth

and spread risk

• Staff branch offices with national expertise

* Objective and strategy has remained consistent over the life of the corporation

CORPORATE OBJECTI VE & STRATEGY *

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Trinidad Ecuador

• World-Class Petroleum Systems

and source rocks

• Cretaceous La Luna
• (Colombia, Venezuela,

Trinidad, Ecuador, Peru)

• Jurassic Vaca Muerta

(Argentina),

• Pucara, Ambo and Ene (Peru)
• Favorable Contract Terms

(Colombia, Peru, Argentina)

• Manageable Non-Technical Risks

(Colombia, Trinidad, Argentina, Peru)

• Blend of Exploration and

Exploitation Opportunities Available

Focused on the Sub-Andean Basins of SA

Pacific Pacific Ocean Ocean Atlantic Atlantic Ocean Ocean

Venezuela

Peru Peru Colombia Colombia Argentina Argentina

Bolivia

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Established Production

• Puesto Morales (100% WI )
• 11,333 bbl/ d oil sales in Q1 2007
• 2.3 mmcf/ d natural gas sales
• Secondary recovery (waterflood) is

currently being implemented to increase recovery factor – Sept 07 start

• High pressure gas pipeline underway

– also Sept 07 start

• Rinconada (100% WI )
• First Well tests @ 670 bbl/ d with

stabilized rate of 250-275 bbl/ d

• Significant oil potential at shallow

depths

Non-Productive Acreage

• Vaca Mahuida (100% WI )
• Extension of Rinconada oil play onto

block plus other prospects

• Gobernador Ayala I I (100% WI )
• Salinas Grande I (50% WI Pending)

ARGENTI NA

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ARGENTI NA – Neuquén Basin

PPL Acreage Pending Acreage Bid Round Acreage (Rio Negro Province) Direct Negotiation (La Pampa Province) Petro Andina

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Neuquén Basin – NE Shelf Acreage

Petrolifera Blocks

Puesto Morales/ Rinconada

• 95,000 acres (100% )

Vaca Mahuida

• 253,000 acres (100% )
• Gob. Ayala I I
• 43,000 acres (100% )

Salinas Grande I (pending)

• 1,100,000 acres (50% )

Available Blocks Available Blocks

Gobernador Ayala

• 188,000 acres (three blocks)
• PDP is one of a select group
• f companies invited to bid

by the province of La Pampa Angostura

• 97,000 acres
• Competitive bid in the

province of Rio Negro’s third bid round

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Puesto Morales – Oil Facilities

Planta PM Planta PM

Manifold Well Head Treatment Plant Storage Tanks Pumping Station Pipeline Route Lact Unit at Oldelval Connection Point

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Puesto Morales – “El Medanito” Gas Pipeline

Puesto Morales Puesto Morales Medanito Medanito 30 km 30 km

• Length: 30 km
• Diameter: 10”
• Capacity: 35 mmcf/ d
• Early start-up: mid August 2007

(low pressure)

• High pressure: start up September

2007 (20 mmcf/ d)

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Sierras Blancas Choiyoi Group: volcaniclastic basament Catriel - Tight eolian deposits (highly cemented and a good seal Loma Montosa (or Lower Quintuco) Precuyo Group: conglomerates with volcanic rocks filling grabens Punta Rosada Middle Quintuco

Permo Triassic Upper Jurassic

20 m

Upper Jurassic Reservoirs – NE Neuquén

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Puesto Morales – Planned Drilling 2007-08 Wells to be drilled (> 60)

• Centenerio (5)
• Sierras Blancas/ Punta

Rosada (20)

• Quintuco (22)
• Quintuco Gas (6)
• I njectors (9)

Legend

• Wells drilled 2007
• Drilling locations (Oil)
• Drilling locations (Gas)
• I njectors

19 Total 3D seismic acquisition 2006 – 252 km2 Total 3D seismic acquisition 2006 – 252 km2 RN.RR.x-1001 690 BOPD RN.RR.x-1001 690 BOPD

Expansion Through Exploration

Rinconada North 2 to 3 exploration wells + Rinconada North 2 to 3 exploration wells + RN.RR.x-6 Completed as Sierras Blancas Oil well in 1969 by YPF RN.RR.x-6 Completed as Sierras Blancas Oil well in 1969 by YPF Rinconada Sur/Vaca Mahuida Large Strat/Structual Play (approx 90 Km2) with potential for multiple wells Rinconada Sur/Vaca Mahuida Large Strat/Structual Play (approx 90 Km2) with potential for multiple wells Puesto Morales South 3 + Wells on new separate prospects Puesto Morales South 3 + Wells on new separate prospects RN.RR.a-1003 Cased RN.RR.a-1003 Cased

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• Solid Production Base
• Low FD&A Costs
• New Rigs Arriving (see background photo)
• 55 Well Program 2007
• Large Contiguous Land Base – 946,000

acres (41 TWP)

• Consistent, Predictable Geological Model

Throughout Land Holdings ARGENTI NA - Summary

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PERU

BLOCK 106

• EI A completion

anticipated for 2007

• Seismic late 2007
• Drilling 2008

BLOCK 107

• EI A completion

anticipated for end of July 2007

• Airborne

gravity/ magnetics project completed in July 2007

• Seismic acquisition July -

October

• Drilling early 2008

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Concession Map Peru (Dec 2006)

Block 106 Block 106 Block 107 Block 107

Over 30 New Blocks have been signed or are waiting for the

• fficial award

(Presidential Decree) since Petrolifera’s negotiations were completed on Blocks 106 and 107

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(1) Based on publicly available information at: www.perupetro.com.pe

Block 106 - Marañon Basin

50 Kilometers

• Completed field GPS

repositioning project

• Scanned and migrated 1995

km of seismic data

• Reprocessed over 2000 km of

2D seismic data

• Reprocessed 70 km2 of 3D

seismic data

• Completed surface

geochemical project – results being analyzed

• Seismic EI A study underway
• Start August
• Finish December
• Drill 2008

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Block 107 Highlights

• Final Environmental I mpact

Assessment Study completed and submitted

• Awaiting final government

approval

• Airborne gravity/ magnetic survey
• ngoing with completion expected

for July 2007

• Seismic contract awarded to PGS
• Field Geology Studies with

I RD/ Perupetro/ PPL are ongoing

• Discussions for rigs underway

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Airborne Grav/ Mag

• Sanders Geophysics

(Ottawa) contracted to acquire 18,500 line km

• As of July > 90% of

project completed

Seismic

• Contract with PGS

(Houston) has been signed for the acquisition

• f 800 km of 2D seismic

data

• Cost of program – US$20

MM

• Base camp construction

underway

• Once EI A is officially

accepted, line preparation and acquisition will begin

Block 107 – Geophysical Projects

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Eolian Nia Sandstones,

• ne of the principal

productive reservoirs at Camisea, have been identified on Block 107 Eolian Nia Sandstones,

• ne of the principal

productive reservoirs at Camisea, have been identified on Block 107

Block 107 – I RD Field Geology Update

27 Exploring for large sub-thrust structures and other FTB related features Mature, highly organic source rock identified

Block 107 – I RD Field Geology Update

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COLOMBI A – ANH Negotiated Blocks

Lower Magdalena Basin

• Sierra Nevada License (210,000 acres)
• Status – Signed
• Term 18 months
• 300 Km pre-stack depth

seismic reprocessing

• 13,000 foot well
• Studies
• Block C TEA (879,000 acres)
• Status – Finalizing with ANH
• Term 14 months
• Seismic reprocessing and

G&G studies Middle Magdalena Basin

• Turpial TEA (113,000 acres)
• Status – Signed
• Term 10 months
• Seismic reprocessing

(< 100km) and G&G studies

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Sierra Nevada Sierra Nevada I I (TEA) Lower Magdalena Turpial (TEA) Middle Magdalena

COLOMBI A – New Blocks

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COLOMBI A – Lower Magdalena Basin

Caribbean Sea Petrolifera Acreage Pacific Stratus Gas Discovery

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COLOMBI A – Sierra Nevada & Block C

Sierra Nevada License Sierra Nevada I I TEA

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COLOMBI A – Middle Magdalena Basin

Turpial TEA

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COLOMBI A – Turpial Block

Turpial TEA Velasquez Field Cocorna Field

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Edmonton Calgary ACRES Argentina

• PMorales/Rinconada

95,000

• Gobernador Ayala II

43,000

• Salinas Grande I

555,000

• Vaca Mahuida

253,000 946,000 Peru

• Block 106

1,997,500

• Block 107

3,205,000 5,202,500 Colombia

• Sierra Nevada

210,000

• Turpial

113,000

• Sierra Nevada II

879,000 1,202,000 TOTAL (319 Twp) 7,350,500

Approximately 18 X 18 TWP’s

PDP’s NET Acreage Position in SA

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Q1(A) Q4(E) FY(E) Risked forecast production (mboe/ d) 11.6 18.7 13.3 Revenue ($MM) 46.6 70.6 208.0 After-tax cash flow ($MM) 24.6 36.9 100-110 CAPEX ($MM) Argentina (55 wells, seismic, gas pipeline) 6.8 105.1 Peru (geophysics) 0.7 36.3 Colombia (geophysics/ geology) 0.0 2.3 Total 7.5 143.7 WC ($MM) 58.9 (E) 25.0 (E) 25.0 Shares O/ S - End of period - (MM) 43.9 49.9 December Exit Rate Target For Production > 21,000 boe/d

Q1 2007 Outlook – Revised Guidance

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• Petrolifera is an organic growth company
• First year’s pre-tax cash flow over $80MM
• New discoveries resulted in production growth
• Low cost – finding and operating
• Strong shareholder sponsorship, qualified management
• Strong balance sheet; unused available cash and credit
• Additional growth to be realized in Argentina
• Long-term significant potential in Peru
• Three new blocks in Colombia – diversifying PDP’s

portfolio in SA

• New opportunities under evaluation

Conclusions