NEWSROOM

    TORONTO, Nov. 12 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE)
announced today a restructuring of its four-year investment program, as well
as its plan to fund the program, while maintaining its production targets for
its main oil and gas assets in Colombia.
    The investment program calls for an expenditure of US$1,185 million (net)
for the period 2009 - 2012, which will be funded through the cash flow
generated by operations as well as financing from credit facilities already in
place. The new, optimized capital expenditure program results from two main
initiatives: the optimization of the production facilities at the Rubiales
field and the rescheduling of the company's exploration plan.
    The original development plan for Rubiales called for the expansion of
the existing production facility (CPF1) to a capacity of 70,000 bopd and the
construction of a second facility (CPF2) with an additional capacity of
100,000 bopd. The company has done some significant reengineering and the CPF1
will now be expanded to a capacity of 100,000 bopd, which will come on-line in
the second half of 2009. A modified CPF2, with a capacity of 70,000 bopd, will
now be operational in 2010. This re-engineering will synchronize the
development of the production and pumping facilities with the original
production profile for the field. The reengineering also modifies the capital
expenditures profile, in particular reducing the outlays for 2009 by almost
US$180 million (as compared to the original plan), but achieves this without
affecting the company's original production targets for the Rubiales field or
its exploration obligations.
    In parallel with the reshaping of the capital expenditure profile, Phase
I of the construction of the Oleoductos de los Llanos (ODL) oil pipeline that
will ultimately connect the Rubiales field to the Monterrey station will be
operational by July 2009. Phase I will see the Rubiales field connected to the
main Colombian oil transportation system, significantly improving the
company's costs of transportation and allowing early pumping of Rubiales'
production, even before the main pumping facilities are completed. The company
has been able to create this two-phased approach to utilizing the ODL through
the utilization of temporary pumping capacity that the company has located and
put 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 set the foundation for ramping up the field to an average
production of 90,000 bopd in the second half of 2009. Phase II of the ODL
construction will see the pipeline reaching full capacity (170,000 bopd) by
the end of 2009. The company has already funded its equity portion of the ODL,
with no further equity contributions anticipated; the pipeline's development
is proceeding well and on schedule. It is expected that the debt portion for
the pipeline project will come from multilateral agencies and commercial banks
and due diligence in that regard is well advanced.
    At its light and medium oil assets in Colombia, and at the La Creciente
natural gas field, the company will continue to focus on developing the proven
reserves with a goal of reaching its production targets for 2009 of 8,000 bopd
and 90 mmscf, respectively. While serving the goal of maximizing cash flow,
this will allow the company to continue to increase the certainty of the
resource base.
    On the exploration side, the company has re-examined its commitments, and
will concentrate its activity during 2009 on those blocks for which it has
immediate contractual obligations to the Agencia Nacional de Hidrocarburos
(ANH) to explore. The company will reschedule the rest of its exploration
activity according to the same ANH obligations; for instance, the six new
blocks that the company was recently awarded by the ANH will not require
exploration expenditures until 2010. The company anticipates meeting all of
its exploration obligations and remains committed to its exploration program,
recognizing its major exploration position in Colombia, which management
regards as one of the company's most enduring competitive advantages.
    The company has also instituted a program of reducing costs and has
signed a mandate with BNP Paribas and Sumitomo Bank to arrange up to $500
million in a corporate credit facility, which is expected to be closed early
in 2009; the company expects, for the purposes of its investment program, to
utilise in 2009 US$100 million of that facility. In addition, the company has
already established credit facilities for US$66 million with banks located in
Colombia, and maintains a credit line of up to US$20 million from the
International Finance Corporation. These financial facilities will be utilized
to fund the increased production profiles, which the company regards as the
surest way to maximize cash flow. Additionally, if there are any delays in
completing the financing of the ODL, the company will have its corporate
facility to draw down.The company is using the following financial projections, utilizing a
forecast price of WTI US$60:

    -------------------------------------------------------------------------
    WTI $60                                  2009     2010     2011     2012
    -------------------------------------------------------------------------

    REVENUES                                  839    1,192    1,443    1,507
    -------------------------------------------------------------------------

    NET CASH FLOW OPERATING ACTIVITIES        216      376      507      459
    -------------------------------------------------------------------------

    CAPEX                                     363      333      299      190
    -------------------------------------------------------------------------

    OPEN CREDIT LINES                         100        -        -        -
    -------------------------------------------------------------------------

    BEGINNING CASH                            104       15        6      172
    -------------------------------------------------------------------------

    CLOSING CASH                               15        6      172      431
    -------------------------------------------------------------------------

    EBITDA                                    324      507      617      642
    -------------------------------------------------------------------------

    N.B. All Figures in US$ millionsRonald Pantin, CEO of the company stated, "In this environment of
relatively low oil prices, the company's great advantage is that we are a
low-cost producer. That, coupled with a fully funded investment plan, allows
us to move forward with our expenditure program. We feel confident that the
short term accommodations in our plan will allow us to achieve our short term
goals, and preserve the implementation of our long term strategy that will
maximize future shareholder value."
    The company's senior management will discuss the company's investment
plan during a conference call scheduled for Thursday, November 13, 2008, at
9:00 a.m. Eastern Time.Call-in details are as follows:

        Toronto & International:  +1 (416) 646 3097
        North America:            +1 (800) 733 7571Pacific 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