Pacific Rubiales Reaches New Landmarks in its Development Strategy
Apr 22, 2008

    TORONTO, April 22 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PEG) today
provided an update on its activities regarding the development of the crude
oil reserves at its Rubiales field, as well as for associated commercial

    Production Record

    On April 19, 2008, the company achieved a new production record for its
Rubiales field of 31,774 bopd (gross). This continues the company's ambitious
march to achieve 126,000 bopd by the fourth quarter of 2009. This new
production record represents an almost 100% increase in production in the last
12 months, and the continuous improvement in production reinforces the
company's commitment to successfully develop the Rubiales field to its full
potential. The company acquired the Rubiales field in July 2007.

    New Facility to Export Rubiales Blend Comes on Stream

    In pursuit of its strategy to maximize revenues and reduce costs, the
company has gradually shifted its sales from the Colombian internal market to
the export market. A major step in this direction was taken on April 19, when
the company put into operation PF2, which is a new storage and mixing facility
located in Guaduas, 90 km northwest of Bogota. This new facility, which cost
approximately US$8.0 million, is designed to receive heavy oil via truck from
the Rubiales field, and diluents from a number of origins. The streams are
then mixed on line as Rubiales blend (18.5 degrees API) and pumped through PF1
(the original production facility) into the ODC (Oleoducto de Colombia) to its
final destination at the Covenas oil terminal in the Caribbean. The facility
has the capacity to handle up to 26,600 bopd of Rubiales blend, which is
enough to handle all the company's net production from the Rubiales field as
Rubiales blend until the pipeline from the Rubiales field becomes operational
in the last quarter of 2009.


    With PF2 coming into operation, all of the Rubiales field's net
production can now be directed to the export market via pipeline. This has a
beneficial, twofold impact on the fiscal strength of the company. On the one
hand, the export market yields a significantly better value than the local
market, and allows the company to take advantage of the bullish sentiment in
the international oil market. On the other hand, the existence of the facility
slashes the company's trucking costs to market, since the distances from the
field to the main transportation pipeline are now significantly shorter. As a
result of these two factors the company is expecting, at current prices, an
export netback of US$67/bbl for the company's current net production of
approximately 13,000 bopd.

    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
19,050 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.

    Forward-looking statements: This document contains statements about
expected or anticipated future events and financial results that are
forward-looking in nature and as a result, are subject to certain risks and
uncertainties, such as general economic, market and business conditions, the
regulatory process and actions, technical issues, new legislation, competitive
and general economic factors and conditions, the uncertainties resulting from
potential delays or changes in plans, the occurrence of unexpected events, and
the Company's capability to execute and implement its future plans. Actual
results may differ materially from those projected by management. For such
statements, we claim the safe harbour for forward-looking statements within
the meaning of the Private Securities Legislation Reform Act of 1995.

For further information:
For further information: Ronald Pantin, Chief Executive Officer, or Jose
Francisco Arata, President, (416) 362-7735