NEWSROOM

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/TORONTO, Aug. 26 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PEG)
announced today that it has filed with the securities regulatory authorities
in all provinces of Canada, other than Quebec, a final short form prospectus
with respect to the previously announced offering of convertible debentures.
The company is offering $220 million principal amount of 8% convertible
unsecured subordinated debentures, which will expire five years and one day
from the date of issuance and will be convertible into common shares of the
company at $13.00 per share.
    A syndicate of underwriters led by GMP Securities L.P., and including
Canaccord Capital Corporation, Cormark Securities Inc., Macquarie Capital
Markets Canada Ltd. and Thomas Weisel Partners Canada Inc., have agreed to
purchase the convertible debentures being offered. The underwriters have
advised the company that they intend to exercise at closing the over-allotment
option to purchase an additional $20 million principal amount of debentures at
the same offering price, to cover over-allotments, if any, and for market
stabilization purposes.
    Pacific Rubiales plans to use the net proceeds of the offering to pay for
the previously announced acquisition of Kappa Energy Holdings Ltd. Any excess
funds will be used for the general working capital requirements of the
company.
    The offering is scheduled to close on or about August 28, 2008.
    The securities have not been and will not be registered under the United
States Securities Act of 1933, as amended, or any state securities laws, and
may not be offered or sold in the United States or to, or for the account or
benefit of, U.S. persons absent registration or an applicable exemption from
registration requirements. This news release does not constitute an offer to
sell or a solicitation of an offer to sell any of the securities.

    Pacific 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
21,000 barrels of oil equivalent per day, with working interests in the
Rubiales, Piriri and Quifa concessions and the Caguan, Dindal, Rio Seco,
Puli B, La Creciente, Moriche, Guama, Arauca, Tacacho and Jagueyes blocks in
Colombia and blocks 135, 137 and 138 in Peru.

    %SEDAR: 00007953E