NEWSROOM

TORONTO, July 20, 2011 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE) (BVC: PREC) announced today that on July 18, a group of unknown persons, who are not employees of the Company, blocked certain internal routes at the Rubiales Field as part of union activity taking place outside of Pacific Rubiales' operations. This was part of a protest that was initiated between one of the contractors at the Rubiales Field and its unionized workers, regarding salary and benefits. The protest has now been resolved and the Rubiales Field is restarting operations now and it will be operating normally shortly.

During the protest, the union demanded that workers at the field stop work, and the Company understands that the workers of this contractor opted to support the protest, under duress, and blocked road access to the field. Although certain union leaders claimed otherwise, no employees of Pacific Rubiales participated in the protest.

The Company took all precautions necessary to ensure the safety of its workers and field operations, and as a result initiated a progressive and temporary production halt on July 19 to first and foremost ensure the safety and security of the workers on site. The security measures that were taken follow Company policy and procedures, and were coordinated with the national security forces which are responsible for field security. As a result of these measures, the Company facilitated a peaceful and swift resolution of the issues between the contractor and its unionized employees. The Company is currently estimating what was the lost production as a result of this activity, of which 67% correspond to Ecopetrol and royalties to the Government of Colombia.

This is the first time that the Company has encountered union activity like this at the field. The Company has well-established labour practices in place and complies with all national and international norms in this respect. It also applies and maintains a clear policy regarding benefits and respect for all workers, including contract workers.

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 and Piriri oil fields in the Llanos Basin in association with Ecopetrol, S.A., the Colombian national oil company. 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 45 blocks in Colombia, Peru and Guatemala.

The Company's common shares trade on the Toronto Stock Exchange and La Bolsa de Valores de Colombia under the ticker symbols PRE and PREC, respectively. 

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. 

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 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 10, 2011 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.