NEWSROOM

    TORONTO, Aug. 13 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PEG)
provided today an update on the development of crude oil production and at its
Rubiales field, together with its associated commercial activities, and on its
exploration efforts.

    Production

    The Rubiales oil field has now reached a new gross production level of
40,087 barrels of oil per day (bopd), marking another firm step on the
company's ambitious march to achieve gross production of 126,000 bopd by the
fourth quarter of 2009. This new production record not only represents an
increase of almost 60% since the beginning of the year, but also reinforces
the company's successful implementation of its Rubiales development plan. The
company acquired its interest in the Rubiales field in July 2007, and it now
represents the fastest growing field in Colombia.
    Together with its production from its other fields, Guaduas, Rio Ceibas,
Moriche and Puli, the company's oil production is now 43,387 bopd (gross) and
16,404 bopd (net).
    The company's master plan to expand production and export it to the
international market is also on track. The bid tender for the Independent
Power Producer (IPP) contract for electricity generation at the Rubiales field
has now been completed and Energy International Corp, a corporation
headquartered in Miami, Florida with extensive experience in power generation
solutions throughout Latin America, has been selected. Under the contract, the
IPP will initially generate 30 MW, expandable to 55 MW, for eight years under
a Build, Operate and Transfer contract that will generate substantial
production cost savings.

    Marketing

    The company continues to take advantage of the dynamics of the
international oil market, in combination with the investment it has made in
infrastructure, which allows it to direct its volumes to the export market. On
average in August the company has been handling, through the Guaduas facility,
a total volume in excess of 25,330 bopd, including 19,897 for its own account
and the balance of 5,435 for the account of third parties, under attractive
fee generating throughput and transportation agreements, which are then
transported by pipeline to the export terminal in Covenas. During July the
average realized price for the Rubiales blend was US$113.33/barrel, FOB
Covenas.
    The company also announced that it has executed firm delivery natural gas
contracts for a volume of 49 mmscf, at an average price of US$6.32/mmbtu,
valid until November 2009. The company continues its efforts to develop export
markets.

    Exploration Overview

    The company continues its exploration program at its properties
throughout Colombia and, at the La Creciente gas field; the company spudded
the La Creciente J-1 (LCJ-1) well on August 5. It is expected that this well
will reach the top of the Cienaga de Oro reservoir at an estimated depth of
11,574 feet. This is the third exploration well that the company has drilled
on the La Creciente block during 2008. In addition, a 3D seismic survey will
be acquired during the fourth quarter of 2008 on the northern portion of the
block, covering prospects F, H, I and D-west.
    The company is planning to drill two exploratory wells at Prospects D and
E of the Quifa Block, and is in the midst of acquiring permits for a third
location sited at prospect A. The company expects to spud the first well
before the end of September 2008.
    At Moriche, the company is preparing the site to drill Mauritia N-2 at
the Mauritia NW prospect. It is expected that this well will be spudded in
November 2008; as well, the company is acquiring permits to prepare the site
for the Mauritia-Este prospect.
    At Arauca, the company has finished reprocessing 2,000 km of 2D seismic,
and its interpretation is underway. At Jagueyes, the company is preparing the
terrain to acquire the 3D seismic, while at Guama, the interpretation of new
and reprocessed 2D seismic is being completed. So far, prospects A (gas and
oil) and D (gas and oil) have been confirmed.
    Ronald Pantin, the company's Chief Executive Officer, stated "the
continuous improvement of our operational numbers confirms our commitment to
continue adding value to our production assets in the region and underlines
our drive to make Pacific Rubiales the largest independent oil and natural gas
company in the region."

    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