NEWSROOM

TORONTO, July 18, 2011 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC) announced today an operational update for the TORODOI-1X exploration well, the first of two exploratory wells planned for 2011 in the Arauca Block.

The TORODOI-1X well spudded on July 3, 2011 with exploration targets in Tertiary and Cretaceous sands. The well was drilled vertically and found the Tertiary Carbonera Formation at 4,534 feet Measured Depth ("MD") or 4,121 feet True Vertical Depth Sub Sea ("TVDSS"), Tertiary Mirador at 5,549 feet MD (5,136 feet TVDSS), Cretaceous Guadalupe at 5,822 feet MD (5,325 feet TVDSS) and Basement at 7,119 feet MD (6,706 feet TVDSS), reaching Total Depth ("TD") at 7,327 feet MD on July 12, 2011.

Ronald Pantin, Chief Executive Officer of Pacific Rubiales, commented: "We are very encouraged by this first success in the Arauca Block as this represents an auspicious start of the activity in this brand new oil region, setting the path for new discoveries that will enlarge our resource base and ensure the long term growth of the block."

During drilling, oil shows were detected in ditch samples located in sands correlated as Carbonera C-5 at 5,185 feet MD (4,772 feet TVDSS). Weaker oil and gas shows were also described in the Mirador and Guadalupe formations.

After running open hole wire-line logs, the petrophysical evaluation showed an oil-bearing sand interval in the Carbonera C-5 with a net pay thickness of 13 feet, 24% porosity and water saturation of 45% without an oil-water contact interpreted. On that sand, two wire-line pressure points showed a 0.357 psi / ft formation gradient, indicative of a fluid density similar to that of light to medium oil. The Mirador and Guadalupe showed water on the petrophysical evaluation, and four pressure points showed a water gradient of 0.43 psi / ft.

At C-5 level, the TORODOI-1X well is located within a four-way structural closure with an approximate area of 5,300 acres.

Management believes the geological information obtained in the TORODOI-1X well will be invaluable for the design of the planned exploration wells with Paleozoic targets.  The Company is making arrangements to conduct production tests after the running of a 7" casing down to TD.

The Arauca Block is an E&P Contract executed between Pacific Stratus Energy Colombia Corp. (a wholly-owned subsidiary of the Company) and the Agencia Nacional de Hidrocarburos of Colombia ("ANH") with a sliding scale royalty, where the Company holds 100% working interest, and Free Traders Group Inc. is entitled to a 5% working interest once repayment of 5% of the exploration expenditures is made by Free Traders Group Inc. to the Company, if commercial production is obtained and subject to the ANH's approval of said transfer of interest.

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.