TORONTO, Feb. 6 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PEG)
announced today that the FOB well-head contract prices for the first round
natural gas sales, totaling 35 million cubic feet per day, have increased by
33%, effective February 1st, 2008. The new average FOB well-head contract
price has increased from US$3.72 per million BTU to US$4.95 per million BTU in
accordance with the price escalation clauses contained in those contracts.
Mr. Jose Francisco Arata, President of Pacific Rubiales, stated "We are
delighted with the improving price environment of the Colombian natural gas
market and expect further improvement for future additional gas sales of
roughly 20 million cubic feet per day starting July 1st, 2008, when the
expansion of the gas pipeline's capacity will be completed."
Pacific Rubiales, a Canadian-based company and producer of heavy crude
oil and natural gas, owns 100 percent of Meta Petroleum Limited, a Colombian
oil and gas operator which operates the Rubiales and Piriri oil fields in the
Llanos Basin in association with Ecopetrol S.A. the Colombian, state-owned oil
company. The company is focused on identifying opportunities primarily within
the eastern Llanos Basin of Colombia and the upstream Sub Andean basins.
Pacific Rubiales has a current net production of approximately 17,500 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 and Arauca blocks in Colombia and blocks 135, 137 and 138 in
Peru. The company has offices in Toronto, Vancouver, Caracas and Bogota.