NEWSROOM

TORONTO, Nov. 25 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE) announced today that it has successfully completed a private competitive bid process for the farming out of a series of blocks in which it holds interests in Colombia and Peru, resulting in the award by the company of working interests in such blocks to third party bidders. The total amount successfully farmed out by the company will result in a US$54.2 million reduction in its exploratory commitments for the next two years, most of which is to be achieved from the farming out of two of the company's interests in Peru. In all cases the company has retained operatorship of the blocks.

The farm-out process will allow the company to continue concentrating its investments on core assets without losing the potential upside from promising exploratory activities, while also sharing part of the risk of such activities. The company plans to complete the assignment of the various participating interests awarded under the process as soon as possible.

The following is a summary of the results of the process:

Colombian Blocks:

CPO-1 Block: Located in the Llanos Basin. The company has awarded 50% of its working interest in the block to Petroamerica Oil Corp., a Calgary-based oil & gas company, in exchange for Petroamerica providing 100% of the total investment required to complete the first phase of the minimum exploratory program (MEP) for the block, equal to US$6.9 million. The 36 month-long first exploration phase of the MEP requires a minimum investment of US$9.6 million, which will be spent on the acquisition of 200 km of 2D seismic, the drilling of one exploratory well and geological and geophysical studies. The company will retain a 50% working interest in the block.

Tacacho Block: Located in the Putumayo Basin. The company has awarded 49.5% of its working interest to Petrodorado Ltd, a Calgary-based oil & gas company, in exchange for Petrodorado providing 100% of the total investment required to complete the first phase of the MEP for the block, equal to US$8.0 million. The 24 month-long first exploration phase of the MEP requires a minimum investment of US$8.0 million, which will be spent on the acquisition, processing and interpretation of 480 km of 2D seismic. The company will retain a 50.5% working interest in the block.

Moriche Block (Mauritia East Prospect): Located in the Llanos Basin. The company has awarded 49.5% of its working interest in the "Mauritia East Prospect" to Petrodorado in exchange for Petrodorado providing 100% of the total investment for the current exploratory phase for the block, equal to US$5.53 million. This exploration phase requires a minimum investment of US$6.5 million, which will be spent on the drilling of one exploratory well. The company will retain a 35.5% working interest in the Mauritia East Prospect and an 85% working interest in the rest of the block.

Buganviles Block (future exploratory programs): Located in the Upper Magdalena Basin. The company has awarded 29.5% of its working interest in the Buganviles Block Petrodorado Ltd in exchange for Petrodorado providing 100% of total investment for future exploratory work in the block, equal to US$2.27 million. This exploration phase involves a minimum investment of US$4.6 million, which will be spent on the drilling of one new exploratory well. The company will retain a 19.875% working interest in future exploratory activities and a 49.375% working interest in the rest of the block.

Peruvian Blocks:

Block 135: Located in the Maranon Basin. The company has awarded 45% of its working interest in Block 135 to Petrodorado in exchange for Petrodorado providing 45% of the total investment for the second exploratory phase for the block, equal to US$16.2 million. This exploration phase requires a minimum investment of US$36 million, which will be spent on the acquisition of 704km of 2D seismic and the drilling of one exploratory well. The company will retain a 55% working interest in the block.

Block 138: Located in the Ucayali Basin. The company has awarded 45% of its working interest in Block 138 to Petrodorado in exchange for Petrodorado providing 45% of the total investment for the second exploratory phase for the block, equal to US$15.3 million. This exploration phase requires a minimum investment of US$34 million, which will be spent on the acquisition of 525km of 2D seismic and the drilling of one exploratory well. The company will retain a 55% working interest in the block.

Mr. Ronald Pantin, Chief Executive Officer, commented: "The partial farming out of our 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 2010 and beyond."

The assignment by the company of the working interests is subject to the execution of closing documents relating to each farm-out transaction as well as, where applicable, Colombian or Peruvian 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 Quifa block 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 48,667 barrels of oil equivalent per day (after royalties), with working interests in 32 blocks in Colombia and 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 April 1, 2009 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.

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