NEWSROOM

    VANCOUVER, Dec. 4 /CNW/ - Petro Rubiales Energy Corp. (the "Company" or
"Petro Rubiales") has completed the acquisition of 25 percent of the
outstanding shares of Rubiales Holdings Ltd. ("RHL") which it did not
previously hold. As such, RHL is now a wholly-owned subsidiary.
    The successful and timely completion of the acquisition of RHL, in
addition to the recently announced commercial scheme which has resulted in an
almost 100 percent increase in the netback of half the Company's current
production (see news release dated November 21, 2007), further highlights the
continued commitment of the senior management team to maximise shareholder
value.
    As a result of the acquisition, the Company's net production will
increase from approximately 10,500 to 15,000 barrels of heavy crude oil per
day in 2008; and in 2009, the Company's projected net production will increase
from approximately 33,075 to 47,250 barrels of heavy crude oil per day. This
net production increase, coupled with the increase in netback of almost US$24
per barrel (at current prices) will have a significant economic impact on the
Company's near term growth.
    RHL owns 100 percent of Meta Petroleum Ltd. ("MPL"), a premier oil and
gas operator, with assets in the Llanos Basin, Meta Department of the Republic
of Colombia. MPL holds indirect interests in three hydrocarbon properties with
Ecopetrol S.A, the Colombian, national oil company, including: the Rubiales,
Piriri and Quifa blocks. As a result of the acquisition of the remaining
25 percent minority equity interest in RHL, the Company's working interest in
the Rubiales and Piriri association contracts (after royalties) has increased
to 30 and 39 percent respectively.
    MPL currently produces more than 24,000 (gross) barrels of heavy crude
oil (12.5 degrees API) per day from its Rubiales and Piriri association
contracts. This current production level is set to increase to approximately
40,000 (gross) barrels of heavy crude oil per day in 2008 and to 126,000
(gross) barrels of heavy crude oil by the end of 2009.
    Consideration for the acquisition was US$10-million in cash, plus
85 million common shares of Petro Rubiales. Prior to the acquisition, PF One
held 12,701,176 common shares of the Company and share purchase warrants
entitling it to acquire an additional 6,350,588 common shares. As a result of
the acquisition, PF One now holds 97,701,176 common shares representing
13.68 percent of the Company's outstanding shares. Assuming exercise of all of
the warrants owned by PF One, PF One would hold 104,051,764 shares, or
14.44 percent of the then issued and outstanding shares of the company. While
PF One does not intend to acquire further securities of the Company, it may in
the future acquire or dispose of securities of the Company, through the market
or otherwise, as circumstances or market conditions warrant.

    Petro Rubiales, a Canadian-based company and producer of heavy crude oil,
now 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.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this news release.