NEWSROOM

TORONTO, Sept. 3 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC) announced today that it has executed an agreement with Petrodorado South America S.A. (a wholly-owned subsidiary of Petrodorado Energy Ltd.) for the earn-in of an additional participating interest in the Buganviles Block.

This new agreement is the result of negotiations regarding the drilling of two new exploratory wells in the Buganviles Block and complements the previous farm-out arrangement between the parties previously announced by the Company on November 25, 2009. Under the new agreement, Petrodorado Energy will earn an additional participating interest in the Visure and Tuqueque Prospects by covering 100% of the Company's costs in exchange for a 29.5% and 25% additional participating interest, respectively (for a 49.5% and 45% total participating interest, respectively). The farm-outs in this block will result in an approximate reduction in the Company's exploratory commitments of US$8.94 million for the next two wells. The Company has retained operatorship of the block.

At the Visure Prospect, drilling of the Visure-1X exploration well is expected to commence on September 13, 2010. The planned total depth of the well is 3,600 feet and targets the Lower and Upper Guadalupe and the Barzalosa formations.

At the Tuqueque Prospect, drilling of the Tuqueque-1X exploration well is expected to start on September 29, 2010 subject to governmental authorizations. The planned total depth of Tuqueque-1X is 8,500 feet and targets the Tetuan and Caballos Cretaceous formations.

The farm-out process will allow the Company to continue concentrating its investments on core assets without losing the potential upside from promising exploration activities, while also divesting of some of the risk of exploration.

Ronald Pantin, Chief Executive Officer, commented: "The additional farming out of our Buganviles exploratory portfolio will permit the Company to focus its investments on its producing assets and low risk exploration. This process strengthens our ability to pursue the growth strategy which the Company has envisioned for 2011 and beyond."

The assignment by the Company of the working interests is subject to Colombian governmental and/or regulatory approvals.

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 a current net production of approximately 60,000 barrels of oil equivalent per day, with working interests in 35 blocks in Colombia and 3 blocks (135, 137 and 138) in Peru.

Information in this press release expressed in barrels of oil equivalent (boes) is derived by converting natural gas to oil in the ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 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 12, 2010 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.