NEWSROOM

    TORONTO, Nov. 17 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE) today
announced its results for the three and nine month periods ending September
30, 2008. All amounts are expressed in U.S. dollars. Consolidated financial
statements with Management's Discussion and Analysis ("MD&A") are available on
the company's website at www.pacificrubiales.com and will also be available on
the SEDAR website at www.sedar.com.

    FINANCIAL & OPERATING HIGHLIGHTS (U.S. dollars, except where noted)

    The following table provides a summary of the company's financial and
operating results for the three month periods ended September 30, 2008 and
2007:Financial and Operating Summary

                                                          Three months ended
    (in thousands of US$ except per share amounts               September 30,
     or as noted)                                             2008      2007
    -------------------------------------------------------------------------
    Financials:
    Net sales                                              202,354    26,519
    Net lncome for the period                               86,370     2,690
    Net Income per share - basic and diluted(1)
      - basic                                                 0.41      0.03
      - diluted                                               0.39      0.03
    Capital expenditures                                    74,987    10,710
    Total assets                                         2,312,091   480,525
    Fund flow from operations(2)                           117,032    14,750

                                             Three months ended September 30
                                          2008      2008      2008      2007
                                           Oil       Gas  Combined  Combined
                                       --------------------------------------
    Operations:
    Operating netback ($/boe)(3)
      Crude oil and natural gas sales
       price                            123.30     36.53    103.34     41.83
      Lifting costs                       5.52      2.27      4.77      4.11
      Transportation costs               13.30      0.70     10.40     13.75
      Upgrading costs (Diluent
       including transportation)         21.34         -     16.43         -
      Other costs                         6.81      1.74      5.64      1.50
    -------------------------------------------------------------------------
      Operating netback                  76.33     31.82     66.10     22.47
    -------------------------------------------------------------------------
    (1) All references to earnings per share, weighted average number of
        common shares outstanding, common shares issued and outstanding, and
        authorized common shares have been adjusted to reflect the share
        split and share consolidation.
    (2) Calculated based on cash flow from operations before changes in non-
        cash operating working capital.
    (3) Combined operating netback data based on weighted average daily
        production.
    (4) Natural gas conversion rate used was 6 mcf = 1 boe.Highlights:

    The third quarter of 2008 was another period of significant operational
achievements for Pacific Rubiales. Total average gross crude oil production
was 43,839 barrels per day. As well, natural gas gross production averaged
47,151 million cubic feet during this period (7,859 barrels of oil
equivalents), for a total average gross production of 51,698 barrels of oil
equivalent per day (boepd). In terms of net production, crude oil averaged
16,387 barrels per day and gas production averaged 4,896 boepd, for a grand
net total of 21,283 boepd. This operational level was achieved with a
competitive lifting cost of $4.77 per barrel of oil equivalent.
    Net sales for the quarter were $202.4 million, an increase of 27.6% over
the previous quarter's net sales, due to higher levels of production, higher
oil and gas prices, and a higher volume of crude oil sold in the international
market. Net operating costs per barrel of $37.24 reflect increased costs for
diluents, which increased in line with the oil market and as such were
recovered on the increased realized price per barrel of oil sold during the
quarter. Net operating costs also included an increase in government-mandated
tariffs for the trucking operations out of the Rubiales field. The
continuation of the company's commercial scheme, which was implemented in the
first quarter of 2008 and which seeks to increase export sales, allowed the
company to export an average of 18,587 barrels a day as 18.5 API blended
crude, resulting in a netback to the company in the third quarter of
$66.10/boe ($76.33/bbl oil), as compared to a netback in the first and second
quarters of $38.68/boe ($46.42/bbl oil) and 56.46/boe (71.95/bbl oil),
respectively.
    As a result, in the third quarter, Pacific Rubiales was able to increase
its EBITDA (earnings before income taxes, depreciation and stock compensation)
to $117.5 million, an increase of almost 20 % when compared to an EBITDA of
$98.1 million in the second quarter.
    Net income for the third quarter was $86.4 million and cash flow from
operations before non-cash working capital was $117.0 million.
    Total assets stand at $2.3 billion, shareholders' equity was $1.5 billion
and the company has $169.3 million in cash as at September 30, 2008.
    Ronald Pantin, the company's Chief Executive Officer commented, "We are
extremely pleased with our growth in production, netbacks, revenues and EBITDA
in the third quarter. This growth demonstrates our company's cash generating
potential from operations. Within the current business environment we will be
implementing our new, fully funded investment program that will ensure that we
reach our goal of 100,000 barrels by the end of 2009."
    The company's senior management will discuss the company's financial
results during a conference call scheduled for Monday, November 17, 2008, at
4:00 p.m. Eastern Standard Time.Call-in details are as follows:

      Toronto & International: +1 (416) 644 3422
      North America: +1 (800) 732 0232Pacific Rubiales, a Canadian-based company and producer of natural gas
and heavy crude oil, owns 100 percent of Meta Petroleum Limited, 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
30,000 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 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.

    %SEDAR: 00007953E