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

I nvestor Update Summer 2007

2 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 operations, 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.

3 Senior Management • 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

4 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 •

5 PETROLI FERA Metrics • 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)

6 Production History (boe/ d) 11,643 10,900 Natural Gas Crude Oil & NGLs 7,412 4,203 2,062 538 316 296 287 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07

7 Revenue, Cash Flow and Earnings ($000) 47,122 45,153 Revenue 33,157 Cash Flow Earnings 24,615 21,077 18,821 18,384 15,683 14,983 15,069 9,470 8,452 7,685 3,435 1,485 477 1,543 385 517 228 77 73 56 5 -161 -75 -184 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07

8 Cash Flow and Earnings Per Share ($) 0.56 0.53 0.46 Cash Flow 0.39 Earnings 0.38 0.34 0.25 0.21 0.10 0.04 0.01 0.01 0.00 0.00 0.00 0.00 -0.01 -0.01 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07

9 TSX:PDP Chart @ 10/ 07/ 2007

10 CORPORATE OBJECTI VE & STRATEGY * 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

11 Focused on the Sub-Andean Basins of SA Trinidad World-Class Petroleum Systems • Venezuela and source rocks Cretaceous La Luna • Colombia Colombia Ecuador (Colombia, Venezuela, • Trinidad, Ecuador, Peru) Peru Peru Jurassic Vaca Muerta • (Argentina), Bolivia Pucara, Ambo and Ene (Peru) • Favorable Contract Terms • (Colombia, Peru, Argentina) Pacific Pacific Manageable Non-Technical Risks • Ocean Ocean (Colombia, Trinidad, Argentina, Peru) Argentina Argentina Atlantic Atlantic Ocean Ocean Blend of Exploration and • Exploitation Opportunities Available

12 ARGENTI NA 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)

13 ARGENTI NA – Neuquén Basin PPL Acreage Pending Acreage Bid Round Acreage (Rio Negro Province) Direct Negotiation (La Pampa Province) Petro Andina

14 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 • of 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

15 Puesto Morales – Oil Facilities Treatment Plant Manifold Storage Tanks Well Head Planta Planta Lact Unit at Oldelval PM PM Connection Point Pumping Station Pipeline Route

16 Puesto Morales – “El Medanito” Gas Pipeline Medanito Medanito 30 km 30 km Puesto Morales Puesto Morales 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)

17 Upper Jurassic Reservoirs – NE Neuquén Middle Quintuco Loma Montosa (or Lower Quintuco) Upper Jurassic Catriel - Tight eolian deposits (highly cemented and a good 20 m seal Sierras Blancas Punta Rosada Precuyo Group: conglomerates with volcanic rocks filling grabens Triassic Permo Choiyoi Group: volcaniclastic basament

18 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 Expansion Through Exploration Total 3D seismic Total 3D seismic Rinconada North Rinconada North acquisition 2006 – acquisition 2006 – 2 to 3 exploration wells + 2 to 3 exploration wells + 252 km 2 252 km 2 RN.RR.a-1003 RN.RR.a-1003 Cased Cased RN.RR.x-6 RN.RR.x-6 Completed as Sierras Blancas Completed as Sierras Blancas Oil well in 1969 by YPF Oil well in 1969 by YPF RN.RR.x-1001 RN.RR.x-1001 690 BOPD 690 BOPD Puesto Morales South Puesto Morales South 3 + Wells on new 3 + Wells on new separate prospects separate prospects Rinconada Sur/Vaca Mahuida Rinconada Sur/Vaca Mahuida Large Strat/Structual Play (approx 90 Km2) Large Strat/Structual Play (approx 90 Km2) with potential for multiple wells with potential for multiple wells