NEWSROOM

TORONTO, March 14, 2012 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC; BOVESPA: PREB) announced today the release of its audited consolidated financial results for the years ended December 31, 2011 and 2010, together with its Management Discussion and Analysis ("MD&A") for the corresponding period. These documents will be posted on the Company's website at www.pacificrubiales.com and on SEDAR at www.sedar.com. The Company has scheduled a teleconference call for investors and analysts on Thursday March 15^th at 8:00 a.m. (Bogota time) / 9:00 a.m. EDT (Toronto time) / 10:00 a.m. (Rio de Janeiro time), to discuss the Company's 2011 year-end results. Analysts and interested investors are invited to participate using the dial-in instructions available at the end of this news release.

2011 Highlights

• Production grew 52% year over year, averaging 86,497 boe/d net after royalties, largely driven by increased production from the Rubiales and Quifa SW oil fields.
• First oil production from the Quifa North and Sabanero areas in December, which will contribute to growth in 2012.
• EBITDA for the year doubled to U.S.$1.95 billion, driven by production growth and higher netbacks.
• Net Earnings increased to U.S.$554.3 million in 2011, from U.S.$265.1 million in 2010.
• Adjusted Net Earnings from Operations increased to U.S.$749.1 million in the year, from U.S.$346.9 million in 2010.
• Significant increase in operating netbacks, with crude oil netbacks increasing to U.S.$61.58/bbl (up 42% compared to 2010) and natural gas netbacks increasing to U.S.$31.09/boe (up 39% compared to 2010).
• Total capital expenditures of U.S.$1.1 billion, including exploration spending of U.S.$267 million; up marginally from U.S.$954 million in 2010.
• Growth in 2011 total proved plus probable ("2P") net reserves of 52% adding 169.5 million boe, largely through the drill bit. 2P reserves replacement of 547%, and an increase in 2P reserves life index ("RLI") to 13.
• Successful diversification of the reserves base with the Rubiales field now accounting for less than 30% of the Company's net reserves base from 60% in 2008.
• First bookings of 44 MMbbl 2P net reserves from the CPE-6 E&P block at year-end 2011.
• Independent resource assessment totaling 2.8 billion boe Best Estimate (P50), from the evaluation of 25 of the Company's exploration blocks.
• Exploration success of 84%, from drilling of 69 exploration, appraisal and stratigraphic wells.
• Further optimization of oil transportation infrastructure with an increase in the total transportation capacity of the ODL pipeline (transporting oil out of the Rubiales and Quifa fields, PRE 35% equity interest) to 340 Mbbl/d in December; and start of construction of new diluent blending facilities at Cusiana.
• In the first quarter of 2012, the Company increased its dividend from U.S.$0.093 per common share to U.S.$0.11/share, a reflection of the Company's increased cash flow.

Ronald Pantin, Chief Executive Officer of the Company commented: "2011 was another outstanding year of growth for Pacific Rubiales, and the Company had a very successful year in terms of its operational delivery and strategic positioning.

Our production increased by over 50%, and our reserves additions more than kept pace with 5.5 boe of 2P reserves added for every boe produced during the year. Financial results were strong across all important measures, with revenues, EBITDA, net earnings and adjusted net earnings from operations all doubling from a year ago. The Company realized first production from the Quifa North area, which we expect to continue to grow in 2012. In addition, Maurel & Prom Colombia, B.V., a company in which we hold an indirect 49.999% interest, realized first production from the Sabanero area.

I am particularly pleased with the growth and successful diversification of the Company's reserves base, underpinned by continued reserves bookings in the Quifa area, new reserve additions at Sabanero and the first reserves bookings on the CPE-6 E&P block. The Rubiales field now accounts for less than 30% of the Company's larger reserves base, and new reserves additions underpin the future production growth targets of Pacific Rubiales.

I fully expect another exciting year in 2012, with an oil leveraged production base, and ample exploration acreage and resource to drive continued growth in the immediate and longer term."

Financial Summary

A summary of the financial results for the three and twelve months ended December 31, 2011 and 2010 are as follows (a more detailed discussion and analysis can be found in the MD&A):

Operating Crude Oil and Natural Gas Netbacks

The Company produces and sells crude oil and natural gas. It also purchases crude oil from third parties as diluents and for trading purposes, which are included in the reported "daily volume sold". The combined crude oil and natural gas operating netback during the year ended December 31, 2011 was U.S.$58.24, 44% higher than the same period in 2010. Most of the increase is due to higher realized oil and gas prices.

Operating netbacks for the years ending December 31, 2011 and 2010 are as follows (a more detailed discussion and analysis along with segmented fourth quarter netbacks can be found in the MD&A):

Production Summary

The Company produces crude oil and natural gas from a number of different fields, all located in Colombia. The Company operates most of its production. The average net after royalty production during the year ended December 31, 2011 was 86,497 boe/d, 52% higher than the same period in 2010.

Average production for the Company's major producing fields for the years ending December 31, 2011 and 2010 are as follows (a more detailed discussion and analysis along with segmented fourth quarter production can be found in the MD&A):

The Company has scheduled a telephone conference call for investors and analysts on Thursday, March 15, 2012 at 8:00 a.m. (Bogotá time) / and 9:00 a.m. EDT (Toronto time) / 10:00 a.m. (Rio de Janeiro time) to discuss the Company's 2011 year-end results. Participants will include Ronald Pantin, Chief Executive Officer, José Francisco Arata, President, and selected members of senior management.

The live conference call will be conducted in English with simultaneous Spanish translation. The Company will post a presentation on the Company's website prior to the call; it can be accessed at: www.pacificrubiales.com.

Analysts and interested investors are invited to participate using the dial-in numbers as follows:

The conference call will be webcast which can be accessed through the following link: http://www.pacificrubiales.com.co/investor-relations/webcast.html.

A replay of the call will be available until 23:59 pm (EDT), March 29, 2012, which can be accessed as follows:

Pacific Rubiales, a Canadian-based company and producer of natural gas and heavy crude oil, owns 100 percent of Meta Petroleum Corp., a Colombian oil operator which operates the Rubiales, Piriri and Quifa oil fields in the Llanos Basin in association with Ecopetrol, S.A., the Colombian national oil company, and 100 percent of Pacific Stratus Energy Corp. which operates the La Creciente natural gas field. The Company is focused on identifying opportunities primarily within the eastern Llanos Basin of Colombia as well as in other areas in Colombia and northern Peru. Pacific Rubiales has working interests in 43 blocks in Colombia, Peru and Guatemala.

The Company's common shares trade on the Toronto Stock Exchange and La Bolsa de Valores de Colombia and as Brazilian Depositary Receipts on Brazil's Bolsa de Valores Mercadorias e Futuros under the ticker symbols PRE, PREC, and PREB, respectively.

Advisories

Cautionary Note Concerning Forward-Looking Statements

This press release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding estimates and/or assumptions in respect of production, revenue, cash flow and costs, reserve and resource estimates, potential resources and reserves and the Company's exploration and development plans and objectives) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: uncertainty of estimates of capital and operating costs, production estimates and estimated economic return; the possibility that actual circumstances will differ from the estimates and assumptions; failure to establish estimated resources or reserves; fluctuations in petroleum prices and currency exchange rates; inflation; changes in equity markets; political developments in Colombia, Guatemala or Peru; changes to regulations affecting the Company's activities; uncertainties relating to the availability and costs of financing needed in the future; the uncertainties involved in interpreting drilling results and other geological data; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated March 14, 2012 filed on SEDAR at www.sedar.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

In addition, reported production levels may not be reflective of sustainable production rates and future production rates may differ materially from the production rates reflected in this press release due to, among other factors, difficulties or interruptions encountered during the production of hydrocarbons.

Reserves Replacement

Production replacement is calculated by dividing reserves additions by production in the same period. Reserves additions over a given period, in this case 2011, are calculated by summing one or more of revisions and improved recovery, extensions and discoveries, acquisitions and divestitures. Reserve replacement cost is calculated by dividing total capital invested in finding, development and acquisitions net of divestitures by reserve additions in the same period.

Boe Conversion

Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 5.7 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The estimated values disclosed in this news release do not represent fair market value. The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation.

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