Pacific Rubiales Announces Credit Approval for US$100 Million Commitments as Part of up to US$250 Million Senior Secured Revolving Credit Facility
Mar 31, 2009

    TORONTO, March 31 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE) is
pleased to announce that it has received credit approvals for commitments
totaling US$100 million under a previously announced senior secured revolving
credit facility of up to US$250 million, consisting of US$50 million
commitments from each of BNP Paribas and Davivienda Financial Group, lead
arrangers for the facility. Subject to the completion of all required
documentation, the company expects closing of the first US$100 million tranche
of the facility to occur on or about April 14, 2009. The company expects to
initiate the draw down under the facility as soon as practicable after
    The facility is a senior secured revolving credit facility maturing on
June 30, 2013, and bears interest at LIBOR plus 5.50%. The company will pay
commitment fees of 1.50% on the unutilized portion of any outstanding
commitments under the facility. Subject to customary acceleration events set
out in the credit agreement to be executed between the parties, or unless
terminated earlier by the company without penalty, repayment of outstanding
principal on the facility will be made in equal quarterly installments
following the second anniversary of the closing date.
    The facility is subject to a borrowing base and secured by the assets of
the company's Colombian operating subsidiaries. The initial borrowing base was
determined by the lenders at US$250 million but will be subject to
re-determination semi-annually on April 1 and October 1 of each year. The
company and the lead arrangers for the facility are currently involved in
advanced discussions with additional international lenders to obtain further
commitments up to the amount of the current borrowing base for the facility.
    The company expects to use the proceeds from the facility for the
development of oil infrastructure in order to increase the production capacity
of the Rubiales field up to 100,000 gross barrels of oil per day (including
drilling, oil dehydration and water treatment), as well as for general working
capital purposes, subject to certain restrictions to be set out in the credit
    The company is being advised on the financing by Endeavour Financial
International Corporation.

    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 34,000
barrels of oil equivalent per day, with working interests in 34 blocks in
Colombia and Peru.

    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
31, 2009 filed on SEDAR at 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.

    %SEDAR: 00007953E

For further information:
For further information: Mr. Ronald Pantin, Chief Executive Officer and
Director, Mr. Jose Francisco Arata, President and Director, (416) 362-7735;
Belinda Labatte, (647) 436-2152