Pacific Rubiales Announces Closing of US$200 Million Debt Facility for Rubiales-Monterrey Oil Pipeline
Mar 12, 2009

    TORONTO, March 12 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE) is
pleased to announce that Oleoducto de los Llanos Orientales S.A. (ODL) closed
the previously announced debt facility for approximately US$200 million,
equivalent to COP$520,000,000,000 in Colombian Pesos. The loan was provided by
Grupo Aval, a Colombian banking group led by Banco de Bogota. ODL is a special
purpose vehicle owned 65% by Ecopetrol S.A. and 35% by Pacific Rubiales.
    The credit facility will be drawn down by ODL in two tranches; the first
tranche, representing approximately US$130,000,000, will be on or about March
13, 2009 and the second tranche, representing approximately US$70,000,000, on
or about April 1, 2009. The facility has an interest rate of DTF (Colombian
base rate for fixed rate deposits over 3 months) + 5%, a maturity of 5 years
with a 1 year grace period and blended quarterly payments. The loan is
non-recourse to the sponsors.
    This facility ensures funding for the completion of Phase I of the ODL
pipeline project. Debt financing for Phase II is presently being arranged by
Ecopetrol and Pacific Rubiales via other sources.Phase I and Phase II
    --------------------Phase I of the project is expected to be operational in the third quarter
of 2009. Phase I will see the Rubiales field connected to the main Colombian
oil transportation network at the Monterrey station. It will significantly
reduce the sponsors' costs of transportation, allowing for early pumping of
Rubiales' production, even before the main pumping facilities of Phase II are
completed. ODL has been able to develop this two-phased approach incorporating
an early utilization of the pipeline by implementing initial pumping
facilities which ODL is presently putting in place. This early utilization of
the pipeline, in conjunction with the rescaling of the trucking currently used
by the company to transport its crude, will enable production of up to 100,000
bopd (gross) by the end of 2009. Current production from Rubiales is
approximately 58,000 bopd (gross). Phase II enables production at full
capacity, estimated at 160,000 bopd (gross) by first quarter, 2010.
    As of this date, the sponsors of the project, Ecopetrol and Pacific
Rubiales, have provided the required level of equity contribution to the
project. No further equity contributions by the sponsors are anticipated at
this time.
    Endeavour Financial Corporation advised Pacific Rubiales throughout the
financing of the ODL pipeline.

    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
28, 2008 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