Pine Cliff Energy Ltd. provides the following update with regard to its three well drill program on the Cañadón Ramirez property, located in the San Jorge Basin of Argentina.

Drilling of the three wells has been completed. Testing of the first well drilled had commenced but had to be temporarily suspended.

The suspension of operations is mainly attributable to oilfield workers going on strike and a shortage of diesel fuel in Argentina. Extremely unusual natural factors also temporarily shut down operations in this area. A winter snow storm, a volcano eruption (a first in over 9,000 years), and an earthquake prevented travel to the area or for workers to be in the area because of potential health and safety issues. None of these events have had any implications on the Company's operations.

Pine Cliff continues to be in contact with the operator in Argentina to determine when the strike may be over and when the short supply of diesel fuel has been rectified and activities can be resumed. A shortage of most commodities now exists in Argentina and the Federal government will likely have to modify its energy policy to entice oil and natural gas companies to become more active again.

Tags: Pine Cliff Energy Ltd.