Successful 2007 is foundation for exciting growth in 2008 VANCOUVER, Jan. 8 /CNW/ - Petro Rubiales Energy Corp. (the "Company" or "Petro Rubiales") is pleased to provide shareholders with an update on its first calendar year of operations in the Republic of Colombia. During 2007, the Company transformed itself into a leading independent oil production company in Colombia and created a robust base to continue building the Company during 2008. In summary, Petro Rubiales completed the following key milestones in 2007:- Transformed itself through the acquisition of 100% interest in Meta Petroleum Limited - 94% increase in net oil production - More than doubled netbacks - Upgraded 85 million barrels of possible and probable reserves to proven reserves - Remained focussed on safety - Positioned Company for successful participation in upcoming bid rounds in Colombia - Announced merger with Pacific Stratus Energy Ltd. - Signed MOU with ECOPETROL S.A. for 230km pipeline connecting Rubiales to export market - Awarded supplier contract to Brazilian manufacturer TENARISOn July 16, 2007 and December 4, 2007 the Company closed two transactions to acquire 100% interest of Rubiales Holdings which holds a 100% interest in Meta Petroleum Limited. Petro Rubiales, through the injection of new capital and experienced management, has managed to reinvigorate the company as demonstrated through its technical and economic performance. The arrival of the new management team in July, 2007 has resulted in a number of milestones having been reached. Net oil production has almost doubled from 4,700 barrels per day to 9,100 barrels per day. Implementation of a new transport and marketing procedure has enabled Petro Rubiales to export 3,000 barrels per day at more than double the previous netback - an increase in netback from US$23.40 per barrel to US$47.25 per barrel. Through an aggressive drilling plan of delineation wells, which is still ongoing, the Company has successfully re-classified 85 million barrels of reserves from possible and probable to proven, giving an indication of the economic value that is still to be tapped from the reservoir. On the operational side, Meta Petroleum had an outstanding year, reporting only two minor workplace injuries; in spite of clocking almost twice the man-hours of 2006 as the operations continue to ramp-up in scale. During the year, the Company successfully participated in the "Mini Ronda" concession bidding round and anticipates being awarded the E&P "Jagueyes" block by the end of January. The Company was also invited by the Colombian regulatory agency (ANH) to participate in the Heavy Oil Project (DCP) that stands to be the next frontier for the Colombian oil industry. In mid November, the Company announced a merger with Pacific Stratus Energy Ltd., through a court approved plan of arrangement. The combined entity is expected to have a fully diluted market capitalization of approximately C$2.5 billion and will result in the formation of Colombia's largest independent E&P Company. In the last few days of December, the Company announced the signing of a Memorandum Of Understanding (MOU) with ECOPETROL S.A. for the construction of a 230 km oil pipeline that will allow for the transportation of the crude oil produced out of the Rubiales and Piriri fields, located in the Meta Department in the Republic of Colombia, to the export market once it is completed in the second half of 2009. The preliminary estimate for the pipeline project calls for an investment in excess of US$300 million, of which, approximately 70% will be financed by debt, with Petro Rubiales to provide 35% of the remaining 30% equity requirement. The Company has also announced that as a result of a worldwide bidding process, with the participation of 9 suppliers, and after close consultation with its partner ECOPETROL S.A., it has decided to award the contract for supplying the material for the pipeline to TENARIS, one of the foremost manufacturers and suppliers of tubular products for the oil industry. The material supply contract will amount to US$100 million and delivery from the TENARIS manufacturing plant in Brazil will commence in May 2008. During 2008 the Company expects to build on these early successes and consolidate its position as the premier independent oil company in Colombia. Petro Rubiales, a Canadian-based company and producer of heavy crude oil, 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, national oil company. The Company is focused on identifying opportunities primarily within the eastern Llanos Basin of Colombia. 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. 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