Pacific Rubiales announces credit agency upgrade
TORONTO, March 18, 2013 /PRNewswire/ - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC; BOVESPA: PREB) is pleased to announce that one of its credit rating agencies has recently upgraded the Company's credit rating.
On March 15, 2013, Standard & Poor´s Rating Services raised its corporate credit and senior unsecured debt rating on Pacific Rubiales Energy Corp. to "BB+" from "BB". The rating outlook is stable.
"The upgrade is based on the Company's improved diversification in 2012 due to its acquisitions, mitigating the risk of a significant decrease in cash generation from 2016 with the expiration of the Rubiales and Piriri concession. The Company has demonstrated a strong track record and ability to successfully implement its business plan, and we assume it will be able to develop the newly acquired fields during the next three to four years, thus mitigating the impact of those concessions. The stable outlook reflects our view that the Company will successfully continue increasing its production and geographical diversification over the next few years as a result of its recent acquisitions, while it generates sufficient operating cash flow to finance its required investments."
Ronald Pantin, Chief Executive Officer of the Company, commented: "This recent upgrade by one of our credit rating agencies is a strong endorsement of the Company's business strategy, financial strength, execution ability and future as a leading diversified Latin American focused oil and gas producer."
On October 3, 2012, one of the Company's other rating agencies, Fitch Ratings, raised the Company's credit rating to "BB+" from "BB" with outlook stable, citing continued production and reserves diversification, a proven track record of increasing production, maintaining adequate reserve replacement ratios, and the lower business risk as a result of the completion of key infrastructure projects.
On November 21, 2011 Moody's Investors Service upgraded the Company's Corporate Family Rating to "Ba2" from "Ba3", with the rating outlook stable.
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 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 Company's 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; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated March 13, 2013 filed on SEDAR at www.sedar.com. 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.
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.