NEWSROOM

    TORONTO, Aug. 14 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PEG) today
announced the results for the three and six month periods ending June 30,
2008. All amounts are expressed in U.S. dollars.
    The second quarter of 2008 was another period of significant achievements
for Pacific Rubiales. Total gross crude oil production was 36,200 barrels per
day. Gas production averaged 37 million cubic feet during this period
(6,156 barrels of oil equivalents), for a total daily production of
42,356 barrels of oil equivalents. This operational level was achieved with a
competitive operating cost of $4.34 per barrel of oil equivalents. In terms of
net production, crude oil averaged 12,966 barrels per day. Including gas
production, the company's total production was 19,122 barrels of oil
equivalents.
    Pacific Rubiales continued developing its ambitious business plan, which
contemplates an increase of heavy crude oil production to 126,000 barrels per
day by the end of 2009. Capital expenditures related to this plan totaled
$147.2 million to the end of the second quarter, including a committed equity
share amount of $41.1 million related to construction of the 260 kilometre
pipeline to be completed by the end of the third quarter of 2009. Capital
expenditures in the quarter included $15.7 million for exploration and
production costs for the La Creciente block, $10.4 million for the appraisal
well program to enhance the static model of the Rubiales field, $17.1 million
for the construction of an additional central processing facility at the
Rubiales field, and $3.2 million for seismic programs.
    Net sales reported for the quarter were $158.6 million, an increase of
67% over the previous quarter's net sales of $94.9 million, due to higher
production, increasing oil and gas prices and higher volume sold in the
international market related to the company's successful new commercial
scheme. These increased sales, combined with a reduction in the second quarter
in net operating costs per barrel to $4.34 (compared to $5.08 per barrel in
the first quarter), allowed Pacific Rubiales to reach an EBITDA (earnings
before income taxes, depreciation and stock compensation) of $87 million,
compared to an EBITDA of $39 million in the first quarter. The new commercial
scheme, implemented in the first quarter, allowed the company to export an
average of 12,334 barrels a day as 18.5 API blended crude, resulting in a
netback to the company in the second quarter of $56.46/boe ($71.95/bbl oil),
compared to a netback in the first quarter of $36.68/boe ($46.42/bbl oil).
    Net income for the second quarter was $47.2 million, including a non-cash
foreign exchange gain of $23.7 million resulting from the effect of the
Colombian peso/US dollar exchange rate on future income tax liabilities. Cash
flow from operations before non-cash working capital was $62.1 million.
    Total assets were $1.9 billion, shareholders' equity was $1.3 billion and
the company has $136 million in cash as at June 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 second quarter. This growth, coupled with our decrease in operating
costs per barrel, demonstrate our company's cash generating potential from
operations. We remain on track for our goal of 126,000 barrels per day by the
end of 2009."
    Complete interim financial statements and MD&A are available on the
Company's website or on SEDAR at www.sedar.com.

    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
22,500 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.

    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.
    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.

    %SEDAR: 00007953E