Petrolifera (PDP.TO) news

Petrolifera Petroleum Limited (PDP – TSX) announced today that it has tested its RN. PM. a-1014 well. On test, light gravity crude oil flowed without water at a calculated sustainable rate of approximately 1,200 bbl/d through an 18 millimeter choke, primarily from the Punta Rosada Formation. In this regard, results are similar to those encountered in the offsetting although structurally higher 1011 well. This is Petrolifera’s tenth successive completed crude oil well and ninth successive flowing Sierras Blancas or dual Sierras Blancas/Punta Rosada oil well on the Puesto Morales Block in the Neuquén Basin, Argentina.

The company also wishes to confirm that the drilling rig which was utilized to drill the 1014 well has now moved to the 1024 location, situated south and east of the excellent 1013 well, as the surface location at 1019 was not ready when the rig completed operations at 1014. In the absence of any development to cause a change of plans, Petrolifera anticipates drilling the 1019 location following completion of drilling operations at 1024, which have now been underway for approximately six days.

Analysis: This just keeps getting better and better. We are up over 120% here since June 2006 and look at the move in Dune Energy today. We are up over 40% in just over a few weeks. Nice moves with rising production profiles in both companies. Both are buys on weakness.…

Yamana Gold (AUY) starts up new mine and gives operational update

YAMANA GOLD INC. (TSX:YRI.TO – News)(AMEX:AUY – News)(AIM: YAU) is pleased to provide an update on the start-up of its Chapada copper-gold mine and a production update for its Sao Francisco and Jacobina mines, its two other principal gold mines in Brazil. Yamana operates six mines in Latin America, five of which are in Brazil including the Chapada, Sao Francisco and Jacobina mines. The Chapada mine is Yamana’s largest mine. The period ended September 30, 2006 is the first quarter of commercial production at the Sao Francisco mine and the first full quarter in which Yamana has owned the Jacobina mine. Yamana is also in the process of assuming ownership of the advanced stage Gualcamayo project in Argentina resulting from its successful take-over bid of Viceroy Exploration Ltd.

Production Update

Yamana is also providing a production update. Milestones achieved and events occurring in the three month period ended September 30, 2006 include the following:

– Total production for the third quarter of approximately 89,000 ounces of gold from its five other producing gold mines, consistent with mine plans.

– Upward trend in production at its Sao Francisco mine with monthly production increasing from approximately 8,800 ounces of gold in July to over 10,600 ounces of gold in September for total quarterly production of approximately 29,600 ounces of gold (including pre-commercial production in July).

– Production at the Jacobina mine of approximately 19,300 ounces of gold which is consistent with the mine plan.

– Initiation of cost improvements at the Sao Francisco mine primarily related to elimination of duplicated costs as the mine undergoes the transition from construction to operations.

– Initiation of production and cost improvements at the Jacobina mine including a change in mining method to reduce dilution, and the start of the initial phase of the Jacobina expansion which will result in throughput capacity increasing to approximately 5,000 tpd in the fourth quarter of this year. This is being achieved through the installation of an additional crusher and screening circuit. Yamana will continue to expand at Jacobina with capacity rising to 6,500 tpd by mid to late 2007 and up to 8,500 tpd by late 2008.

– Continuing development at Morro do Vento and other areas of the Jacobina mine to accommodate the increase in throughput at the plant.

Analysis: Good news here with rising production and lower costs as we move forward. This company is a buy.…