Pacific Rubiales announces fourth quarter & year end 2013 results: Reports record financial and operating results
Mar 13, 2014

TORONTO, March 13, 2014 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE) (BVC: PREC) (BOVESPA: PREB) announced today the release of its audited consolidated financial results for the full year and quarter ended December 31, 2013, together with its Management Discussion and Analysis ("MD&A"). These documents will be posted on the Company's website at, SEDAR at, the SIMEV website at, and the BOVESPA website at All values in this release and the Company's financial disclosures are in U.S.$, unless otherwise stated.

Operational Highlights:

  • Total field production for the year was 311,177 boe/d, an increase of 26% compared to 2012.
  • Gross production for the year was 157,976 boe/d, an increase of 33% compared to 2012.
  • Net production for the year was 129,386 boe/d, an increase of 32% compared to 2012. Net production was above the high end of the Company's annual guidance despite accommodating for 1.3 MMbbl associated with the PAP arbitration decision ("PAP").
  • Average net production for the fourth quarter 2013 reached a record 134,313 boe/d, a 24% increase compared to the same period of 2012.
  • Sales volumes for the year were 134,621 boe/d, an increase of 24% compared to 2012, despite accommodating for the 0.5 MMbbl associated with the one time Bicentenario pipeline fill.
  • The Company was able to increase its operating netbacks compared to the previous year, a result of the successful implementation of cost reduction initiatives, despite a 3% drop in combined realized prices in 2013.  Operating netbacks on combined crude oil and natural gas production for 2013 were $60.77/boe compared to $60.20/boe in 2012.
  • Oil operating costs in the fourth quarter 2013 were reduced by $7.46/bbl compared to the same period of 2012, substantially in line with the Company's previously announced target of an $8/bbl reduction by year end 2013. Costs are expected to decline further in 2014.

Financial Highlights:

  • Revenues for the year were $4.6 billion, an increase of 19% compared to 2012 despite a reduction in international oil prices.
  • Adjusted EBITDA for the year was $2.6 billion, an increase of 27% compared to 2012, representing a 55% margin on total revenues for the period.
  • Cash Flow (funds flow from operations) for the year was $1.9 billion, an increase of 38% compared to 2012.
  • Total E&D capital expenditures of $2.1 billion, compared to $1.5 billion in 2012.
  • In 2013, the Company paid a total of $196 million in dividends to shareholders.
  • The Company commenced purchasing its common shares in November under a normal course issuer bid, which has continued into 2014. As of the date hereof, approximately 10.7 million common shares have been purchased for cancellation.

Additional Highlights:

  • A total of 34 exploration wells were drilled during 2013, resulting in 23 discoveries achieving a 68% success rate for the year.
  • Total Proved plus Probable net after royalties reserves ("2P") grew to 619.2 MMboe at December 31, 2013, an increase of 21% from 513.7 MMboe at December 31, 2012, representing a reserve replacement ratio of 324%. Total net 2P reserve additions of 153 MMboe include 89 MMboe from acquisitions and 66 MMboe from exploration.
  • Continued diversification away from the Rubiales field, which now represents less than 11% of total net 2P reserves.
  • In November, the Company completed the strategic acquisition of Petrominerales Ltd. ("Petrominerales").
  • In December, the Company reached an agreement to sell its 5% interest and transportation rights in the OCENSA oil pipeline in Colombia (acquired through the Petrominerales acquisition) for $385 million.
  • First oil test results and oil production from the CPE-6 Block were achieved by year-end.


Ronald Pantin, Chief Executive Officer of the Company, commented:

"At Pacific Rubiales, we focus on production growth and cash generation, believing these to be the single most important measures of value creation over time for an E&P company. I am very pleased that 2013 represents the sixth consecutive year of growth in EBITDA, and fourth consecutive year of growth in both production and cash flow. During 2013, we once again delivered solid operating and financial results, with both production and sales volumes, and all cash flow indicators, including EBITDA and funds flow from operations, reaching record levels.

"We were able to maintain a strong operating netback consistent with that of last year despite a drop in oil and natural gas sales prices, largely driven by a reduction in international oil benchmark prices. I am particularly pleased with our progress in reducing oil operating costs. The target was to reduce these costs (based on an aggregate of production plus transportation plus diluent costs) by approximately $8/bbl by year-end 2013. The actual reduction in the fourth quarter 2013 compared to the same quarter in 2012 was $7.46/bbl, driven largely by the start-up of the Bicentenario pipeline and a reduction in purchased diluent volumes. The electrification of the PEL power transmission line in January 2014 (delayed approximately one month due to late regulatory approvals), along with the anticipated start-up of the Agrocascada water irrigation project, will contribute to further reductions in operating costs in full year 2014.

"Late in 2013, we closed the Petrominerales acquisition. It is important to fully understand both the strategic business and operational value drivers behind this important acquisition, including: (1) additional light oil production which we can use as a lower cost and reliable supply of diluent for our rising heavy oil production, replacing high cost purchased distillate, (2) reserves of light oil which we were able to grow by approximately 24% at year-end 2013, (3) 43 MMbbl of new net 2P heavy oil reserves to develop on the 100% operated Rio Ariari Block and (4) interests in the OCENSA and Bicentenario oil pipelines, also strategic to our expectations of rising oil production from the Llanos Basin in Colombia. Late in 2013, we announced the sale of the acquired 5% interest in the OCENSA pipeline for $385 million, retaining long-term transport capacity, and expect to close the sale in the first quarter of 2014. Further sales of other midstream assets are expected to continue through 2014 and 2015. The proceeds from these sales are expected to be used to reduce debt and for share re-purchases.

"Through our successful exploration program and acquisition strategy, we were able to grow our reserves by a net 21% and further diversify our reserve base beyond the Rubiales Field, which now represents less than 11% of total net 2P reserves. As part of our near-term objective of replacing production from the Rubiales Field, heavy oil discoveries on our CPE-6 and Rio Ariari blocks are now progressing to development and are expected to contribute significant production growth over the next three years.

"Since receiving the CPE-6 blanket exploration and development licence in November 2013, the Company has drilled seven wells with successful tests conducted on two wells and additional tests in progress or planned in other wells. Currently the Company has two drill rigs operating on the Block and plans to drill a total of 25 exploration and development wells during 2014.

"Since acquiring the Rio Ariari Block in late November 2013, the Company has drilled two horizontal wells that tested oil and is optimizing equipment for further extended testing.  Currently, the Company has two drill rigs operating on the Block and plans to drill between 17-20 exploration and production wells (including horizontals) during 2014. One additional rig is currently being mobilized.

"Since 2007, the Company has been able to convert over 150 MMboe of net 2P reserves to production as well as grow net 2P reserves more than five-fold, in step with production growth. We have the assets, the technical expertise and the track record to largely replace the current net production from the Rubiales Field by the time the primary contract expires in 2016.

"In 2013, the Company was able to demonstrate sustained thermal operation of its STAR secondary recovery technology in the Quifa SW pilot project. A doubling of the primary recovery factor through the application of STAR in the pilot area was achieved, certified by three independent engineers, and the Company was granted two twenty year patents for the exclusive application of STAR technology in Colombia. In 2014, we plan to expand the pilot to first full commercial scale by converting additional adjacent pads currently producing under primary flow. Pacific Rubiales currently holds one of the largest acreage positions along Colombia's heavy oil resource trend. With a very large volume of Oil Initially in Place in a number of already discovered fields, STAR is as much the potential future of the Colombia oil industry, as it is the future of Pacific Rubiales.

"In May 2013, the Company increased its quarterly dividend by 50% and late in the year commenced repurchasing its common shares pursuant to a normal course issuer bid, purchasing approximately 10.7 million common shares for cancellation to date. This is a clear demonstration of our commitment to balance growth with returns, our confidence in the sustainability of future earnings and cash flow underpinned by our expectation of continued production growth, and our belief that the Company's shares are currently very under-valued.

"During the year we made a number of significant exploration discoveries, including the Kangaroo and Bilby discoveries in the offshore Karoon blocks in the Santos Basin, Brazil, and the Los Angeles discovery on Block 131 onshore Peru. The Company is planning to drill appraisal wells on these discoveries over the next 12 months; and has a large and exciting exploration drilling program planned for 2014.

"To conclude, we are pleased to close off a successful year in 2013 and look forward to another strong year of operational and financial performance. We expect this year will be marked by a return to large heavy oil field development in Colombia, modest growth in light oil production onshore Colombia and offshore Peru and an exciting exploration program targeting both the appraisal of prior year discoveries and new high impact exploration targets; building for the long-term benefit of our shareholders and employees, the leading E&P company focused in Latin America."

Financial Results

Financial Summary      
  Year Ended
Three Months Ended
  2013   2012 2013 2012
Oil & Gas Sales Revenues ($ millions) 4,626.9   3,884.8 1,202.6 1,046.7
Adjusted EBITDA ($ millions)1, 4 2,567.0   2,020.0 655.3 429.6
Adjusted EBITDA Margin
(Adjusted EBITDA/Revenues)
55%   52% 54% 41%
Adjusted EBITDA per share1, 4 7.95   6.85 2.02 1.45
Cash Flow (Funds Flow from Operations)
($ millions)1
1,913.1   1,387.5 476.9 231.5
Cash Flow (Funds Flow from Operations) per share1 5.92   4.71 1.47 0.78
Adjusted Net Earnings from Operations ($ millions)1 490.2   650.9 152.1 58.7
Adjusted Net Earnings from Operations per share1 1.52   2.21 0.47 0.20
Net Earnings ($ millions) 2 430.4   527.7 143.0 (23.8)
Net Earnings per share 1.33   1.79 0.44 (0.08)
Net production (boe/d) 129,386   97,657 134,313 108,149
Sales volumes (boe/d) 134,621   108,980 143,864 120,141
(COP$ / US$) exchange rate3 1,926.83   1,768.23 1,926.83 1,768.23
Average shares outstanding - basic (millions) 323.0   294.6 324.2 296.3
1The terms adjusted EBITDA, cash flow (funds flow from operations) and adjusted net earnings from operations are non-IFRS measures. Please see advisories and reconciliations in the MD&A.
2Net earnings attributable to equity holders of the parent.
3COP/USD exchange rate fluctuations can have a significant impact on the Company's accounting net earnings, in the form of unrealized foreign currency translation on the Company's financial assets and liabilities and deferred tax balances that are denominated in COP.
4The Company uses the non-IFRS measure adjusted EBITDA, whereas in the past we have used the term EBITDA. Our calculation of this measure has not changed from previous quarters, but the terminology has changed, further to guidance provided by the Ontario Securities Commission.



Net Production Summary        
  Year Ended
  Three Months Ended
  2013   2012   2013 2012
Oil and Liquids (bbl/d)            
Colombia 117,089   85,123   122,190 95,526
Peru 1,355   1,573   1,244 1,457
Total Oil and Liquids (bbl/d) 118,444   86,696   123,434 96,983
Natural Gas (boe/d)1            
Colombia 10,942   10,961   10,879 11,166
Total Natural Gas (boe/d) 10,942   10,961   10,879 11,166
Total Equivalent Production (boe/d) 129,386   97,657   134,313 108,149
1Colombian standard natural gas conversion ratio of 5.7 Mcf/bbl.
Additional production details are available in the MD&A.


In 2013, the Company's net production of 129,386 boe/d increased 32% compared to a year ago, driven by rising production volumes in heavy oil fields and added volumes and growth in light oil production.

Net production from the Rubiales Field increased 18% to 70,214 bbl/d from 59,285 bbl/d a year ago, and from the Quifa SW Field increased 7% to 23,610 bbl/d from 22,070 bbl/d a year ago, primarily due to the environmental permits received in August 2012 which allowed for increased water injection at the Rubiales Field.

Total net light oil production grew over five-fold to 21,783 bbl/d from 4,243 bbl/d a year ago, primarily the result of the C&C Energia Ltd. and PetroMagdalena Energy Corp. assets acquired in July and December of 2012 respectively, and growth through successful exploration and development of these assets. The Company expects light oil production to increase further in 2014 with the additional production from the Petrominerales acquisition and growth resulting from ongoing development drilling in Block Z-1 offshore Peru.

Production and Sales Volumes

Production to Total Sales Reconciliation
  Year Ended
  Three Months Ended
  2013   2012   2013 2012
Net Production (boe/d)            
Colombia 128,031   96,084   133,069 106,692
Peru 1,355   1,573   1,244 1,457
Total Net Production (boe/d) 129,386   97,657   134,313 108,149
Sales Volumes (boe/d)            
Production Available for Sale (boe/d) 129,386   96,463   134,313 107,071
Diluent Volumes (bbl/d) 5,085   9,609   2,261 9,671
Oil for Trading Volumes (bbl/d) 3,832   4,937   3,399 1,718
PAP Settlement (bbl/d) 1 (3,492)   (1,499)   (6,363) -
Bicentenario Pipeline fill (bbl/d) (1,344)   -   (920) -
Inventory Movement and Other (boe/d) 1,154   (530)   11,174 1,681
Total Volumes Sold (boe/d) 134,621   108,980   143,864 120,141
1Corresponds to the inventory delivered to Ecopetrol during 2013. For the fourth quarter, includes the inventory set aside to settle previously accumulated PAP volumes.
Additional production and sales volume details are available in the MD&A.


The Company produces and sells crude oil and natural gas.  It also purchases liquids and crude oil from third parties for trading purposes and distillate for diluent mixing with heavy oil production, which are included in the reported "volumes sold".  Sales volumes are also impacted by the relative movement in inventories during a reporting period.  Both revenues and costs are recognized on the respective volumes sold during the period.

Production available for sale for the year increased to 129,386 boe/d from 96,463 boe/d in 2012 (an increase of 34%), due to rising volumes in producing fields.  Despite an increase in the Company's net heavy oil production from 2012 levels, purchased diluent volumes decreased 47% the result of replacing purchased diluent by its own light crude oil. Oil for trading volumes for the year decreased to 3,832 bbl/d from 4,937 bbl/d a year ago, while inventory balances for the year decreased to a 1,154 boe/d draw from a 530 boe/d build compared to 2012.

Total volumes sold, composed of production volumes available for sale, purchased diluent volumes, oil for trading volumes and inventory balance changes, increased to 134,621 boe/d in the current year from 108,980 boe/d a year ago (an increase of 24%). Total volumes sold during 2013 were impacted by two events:

  • PAP Settlement - During the year, the Company delivered 3,492 bbl/d (approximately 1.3 MMbbl total) to Ecopetrol S.A. as part of the PAP arbitration settlement at Quifa SW. The volumes were accounted against the financial provisions booked as of December 2012 and June 2013. The remaining balance of approximately 0.5 MMbbl will be delivered by the end of the first quarter of 2014.
  • Bicentenario Pipeline Fill - During the year, the Company delivered 1,344 bbl/d (approximately 0.5 MMbbl total) of its share of the Bicentenario pipeline fill. The pipeline fill was completed during the third quarter and the costs associated with this operation were capitalized as a fixed asset.


Operating Netbacks and Sales Volumes

Oil and Gas Production Volumes and Netbacks          
Year Ended December

Year Ended December

Three Months Ended December

Three Months Ended December
  Oil Natural
Combined Oil Natural
Combined Oil Natural
Combined Oil Natural
Volumes Sold (boe/d) 120,002 10,787 130,789 93,141 10,902 104,043 129,547 10,918 140,465 107,392 11,031 118,423
Crude Oil and Natural Gas Sales Price ($/boe) 99.05 37.27 93.95 102.94 42.19 96.58 95.54 32.69 90.66 99.83 43.80 94.61
Production Costs ($/boe) 15.24 5.11 14.41 11.71 4.60 10.96 14.80 4.24 13.98 14.78 6.61 14.02
Transportation Costs ($/boe) 14.54 0.10 13.35 13.95 0.20 12.51 13.29 - 12.26 14.57 0.01 13.22
Diluent Costs ($/boe) 5.46 - 5.01 11.08 - 9.92 2.32 - 2.14 8.52 - 7.72
Sub-Total Costs ($/boe) 35.24 5.21 32.77 36.74 4.80 33.39 30.41 4.24 28.38 37.87 6.62 34.96
Other Costs ($/boe) 1.77 2.62 1.84 1.12 2.65 1.28 4.53 3.02 4.42 5.14 2.99 4.94
Overlift/Underlift Costs ($/boe) (1.56) (1.43) 1.94 (0.27) 1.71 (1.71) 0.07 (1.57) 9.21 (0.89) 8.27
Total Costs ($/boe) 35.45 7.83 33.18 39.80 7.18 36.38 33.23 7.33 31.23 52.22 8.72 48.17
Operating Netback ($/boe) 63.60 29.44 60.77 63.14 35.01 60.20 62.31 25.36 59.43 47.61 35.08 46.44
Additional cost and netback details are available in the MD&A.


In a news release dated April 9, 2013, the Company disclosed plans for a structural reduction in its oil operating costs (production, transportation and diluent costs) on a pro-forma basis by year-end 2013, the result of a number of initiatives and projects, including a new electrical transmission line supplying less expensive energy to power field operations, increased pipeline transportation replacing more expensive trucking of crude oil, and efficiencies and optimizations related to diluent costs and supply.

For the fourth quarter of 2013, the Company was able to achieve an oil operating cost of $30.41/bbl compared to $37.87/bbl in the fourth quarter of 2012, a reduction of $7.46/bbl, compared to the same period of 2012, resulting in a substantial achievement of the targeted $8/bbl reduction. With the electrification of the PEL electrical power transmission line (delivering lower cost electrical power for operating the Rubiales and Quifa fields) following Colombian Ministerial approval in January, the Company expects to realize a full year of production cost reduction in 2014 and is now targeting operating costs of $28 to $30/boe for the year, below original annual guidance of $30 to $33/boe.

The Company also reports separately netback on crude oil for trading which was $1.54/bbl in 2013, compared to $3.38/bbl in 2012. The netback on crude trading activities during the fourth quarter and full year 2013 was lower than 2012, mainly due to an increase in the cost of purchases relative to sales price. Additional oil for trading details are available in the MD&A.

2013 Reserves

The following table summarizes information contained in the reserves reports prepared by the Company´s independent reserves engineering firms: RPS Energy Canada Ltd., Petrotech Engineering Ltd., Netherland Sewell & Associates Inc. and DeGolyer McNaughton, with an effective date of December 31, 2013.  These reserves reports were prepared in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and included in the Company's Form NI51-101 F1 - Statement of Reserves Data and Other Oil and Gas Information for Pacific Rubiales Energy Corp. (the "FI Report") filed on SEDAR.

Total net 2P reserves, expressed in boe, increased slightly in the F1 Report, from that previously announced, as a result of a small non-material net movement from royalties paid in kind to paid in cash.

Reserves at December 31, 2013 (MMboe1)
Country Field Total Proved (P1) Probable (P2) Proved Plus Probable (2P) Hydrocarbon Type
100% Gross Net 100% Gross Net 100% Gross Net  
Colombia Rubiales 197.8 83.5 66.8 - - - 197.8 83.5 66.8 Heavy Oil
Quifa SW 133.8 80.3 64.8 11.8 7.1 5.8 145.6 87.3 70.5 Heavy Oil
CPE-6 34.1 17.0 15.6 104.5 52.3 47.3 138.6 69.3 62.9 Heavy Oil
Rio Ariari2 10.3 10.3 9.7 35.7 35.7 33.5 46.1 46.1 43.2 Heavy Oil
Other Heavy Oil Blocks3 99.3 69.5 58.2 76.6 48.3 39.8 175.9 117.8 98.0 Heavy Oil
Petrominerales Blocks4 49.5 32.0 28.4 27.7 19.6 17.5 77.2 51.6 45.9 Light & Medium Oil
Other Light Oil Blocks5 47.7 34.4 29.7 17.6 11.4 9.6 65.3 45.8 39.4 Light & Medium Oil, Associated Natural Gas
Natural Gas Blocks6 107.2 107.2 100.2 20.5 20.5 19.2 127.6 127.6 119.3 Natural Gas
Sub-total 679.6 434.1 373.3 294.4 194.8 172.6 974.0 629.0 546.0 Oil & Natural Gas
Peru Blocks Z-1 & 131 42.7 20.8 20.8 106.6 52.2 52.4 149.3 73.0 73.2 Light & Medium Oil, Natural Gas
  Total at Dec. 31, 2013 722.3 454.9 394.1 400.9 247.1 225.1 1,123.3 702.0 619.2 Oil & Natural Gas
  Total at Dec. 31, 2012 670.4 389.8 335.5 373.9 209.8 178.2 1,044.4 599.6 513.7  
  Difference 51.9 65.2 58.6 27.0 37.2 46.9 78.9 102.4 105.5  
  2013 Production 113.6 57.7 47.2 Total Reserves
192.4 160.1 152.7  
1See "Boe Conversion" section in the Advisories, at the end of this news release.
2Heavy oil Petrominerales block, acquired in 2013 (no prior period reserve bookings).
3Includes Cajua, Quifa North and Sabanero properties.
4Light and medium oil on Petrominerales blocks acquired in 2013 (excluding the heavy oil Rio Ariari Block).
5All other light oil properties (excluding Petrominerales blocks).
6Includes La Creciente and Guama properties.
In the table above, 100% refers to total 100% field interest; Gross refers to WI before royalties; Net refers to WI after royalties; Numbers in table may not add due to rounding differences.


Exploration Update

During 2013, a total of 34 exploration wells were drilled (including appraisal and stratigraphic), resulting in 23 discoveries achieving a 68% success rate for the year. Eighteen of these exploration wells were drilled during the fourth quarter of the year. This exploration drilling campaign resulted in new discoveries in the CPE-6, Rio Ariari, Quifa, Arrendajo, Cravoviejo, Cachicamo, Casanare Este, Casimena, Cubiro, Yama, La Creciente, and Guama blocks in Colombia, in Block 131 in Peru, and in the Karoon blocks in Brazil. Additional details are available in the Company's 2013 quarterly and year-end MD&A.

Fourth Quarter & Year End 2013 Conference call Details

The Company has scheduled a telephone conference call for investors and analysts on Thursday March 13, 2014 at 8:00 a.m. (Bogotá time), 9:00 a.m. (Toronto time) and 10:00 a.m. (Rio de Janeiro time) to discuss the Company's fourth quarter and year end 2013 results.  Participants will include Ronald Pantin, Chief Executive Officer, José Francisco Arata, President, and selected members of senior management.

The live conference call will be conducted in English with simultaneous Spanish translation.  A presentation will be posted on the Company's website prior to the call, which can be accessed at

Analysts and interested investors are invited to participate using the dial-in numbers as follows:

Participant Number (International/Local):   (647) 427-7450
Participant Number (Toll free Colombia):   01-800-518-0661
Participant Number (Toll free North America):   (888) 231-8191
Conference ID (English Participants):    23639502
Conference ID (Spanish Participants):    23580209


The conference call will be webcast, which can be accessed through the following link:

A replay of the call will be available until 23:59 (Toronto time), March 27, 2014, and can be accessed using the following dial-in numbers:

Encore Toll Free Dial-in Number:  1-855-859-2056
Local Dial-in-Number:    (416)-849-0833
Encore ID (English Participants):   23639502
Encore ID (Spanish Participants):  23580209


Pacific Rubiales, a Canadian company and producer of natural gas and crude oil, owns 100% of Meta Petroleum Corp., which operates the Rubiales, Piriri and Quifa heavy oil fields in the Llanos Basin, and 100% of Pacific Stratus Energy Colombia Corp., which operates the La Creciente natural gas field in the northwestern area of Colombia.  Pacific Rubiales has also acquired 100% of Petrominerales Ltd, which owns light and heavy oil assets in Colombia and oil and gas assets in Peru, 100% of PetroMagdalena Energy Corp., which owns light oil assets in Colombia, and 100% of C&C Energia Ltd., which owns light oil assets in the Llanos Basin.  In addition, the Company has a diversified portfolio of assets beyond Colombia, which includes producing and exploration assets in Peru, Guatemala, Brazil, Guyana and Papua New Guinea.

The Companies common shares trade on the Toronto Stock Exchange and La Bolsa de Valores de Colombia and as Brazilian Depositary Receipts on Brazil's Bolsa de Valores Mercadorias e Futuros under the ticker symbols PRE, PREC, and PREB, respectively.


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, Peru, Guatemala, Brazil, Papua New Guinea or Guyana; 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; the impact of environmental, aboriginal or other claims and the delays such claims may cause in the expected development plans of the Company and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated March 13, 2014 filed on SEDAR at 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.

In addition, reported production levels may not be reflective of sustainable production rates and future production rates may differ materially from the production rates reflected in this press release due to, among other factors, difficulties or interruptions encountered during the production of hydrocarbons.

Boe Conversion

The term "boe" is used in this news release.  Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 5.7 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.

The Company's natural gas reserves are contained in the La Creciente, Guama and other bocks in Colombia as well as in the Piedera Redonda field in Block Z-1, Peru.  For all natural gas reserves in Colombia, boe's have been expressed using the Colombian conversion standard of 5.7 Mcf:  1 bbl required by the Colombian Ministry of Mines and Energy, and for all natural gas reserves in Peru, boe's have been expressed using the Peruvian conversion standard of 5.626 Mcf: 1 bbl required by Perupetro S.A.   If a conversion standard of 6.0 Mcf: 1 bbl was used for all of the Company's natural gas reserves, this would result in a reduction in the Company's net P1 and 2P reserves of approximately 4.9 and 6.9 MMboe, respectively.


Bcf Billion cubic feet.
Bcfe Billion cubic feet of natural gas equivalent.
bbl Barrel of oil.
bbl/d Barrel of oil per day.
boe Barrel of oil equivalent. Boe's may be misleading, particularly if used in isolation. The Colombian standard is a boe conversion ratio of 5.7 Mcf:1 bbl and is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
boe/d Barrel of oil equivalent per day.
Mbbl Thousand barrels.
Mboe Thousand barrels of oil equivalent.
MMbbl Million barrels.
MMboe Million barrels of oil equivalent.
Mcf Thousand cubic feet.
Million Tons LNG One million tons of LNG (Liquefied Natural Gas) is equivalent to 48 Bcf or 1.36 billion m3 of natural gas.
Net Production Company working interest production after deduction of royalties.
Total Field Production 100% of total field production before accounting for working interest and royalty deductions.
Gross Production Company working interest production before deduction of royalties.
WTI West Texas Intermediate Crude Oil.



This news release was prepared in the English language and subsequently translated into Spanish and Portuguese. In the case of any differences between the English version and its translated counterparts, the English document should be treated as the governing version.



SOURCE Pacific Rubiales Energy Corp.

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For further information:

Christopher (Chris) LeGallais
Sr. Vice President, Investor Relations
+1 (647) 295-3700

Roberto Puente
Sr. Manager, Investor Relations
+57 (1) 511-2298

Kate Stark
Manager, Investor Relations
+1 (416) 362-7735