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.