2014

Pacific Rubiales awarded three blocks in Brazil`s 11th bid round

TORONTO, May 16, 2013 /PRNewswire/ - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC; BOVESPA: PREB) is pleased to announce today that it has been awarded three blocks in Brazil's 11th Bid Round (the "Bid Round") organized by the Agencia Nacional do Petróleo, Gás Natural e Biocombustíveis of Brazil ("ANP"). The Company participated in the Bid Round through its wholly-owned subsidiary, Pacific Brasil Exploração e Produção de Óleo e Gás Ltda.

The blocks awarded to the Company are located in the Foz do Amazonas Basin (one block) and in the Pará-Maranhão Basin (two blocks) in the northern deep water of offshore Brazil, and have a total area of approximately 2,300 km2 gross (1,153 km2 net) (See attached map).  The blocks were acquired in consortiums that include as partners the companies Queiroz Galvão Exploração e Produção S.A. ("QGEP") and Premier Oil PC ("Premier"). All three blocks have an initial five year exploration phase with the option to extend the exploration phase by an additional three years.

Ronald Pantin, Chief Executive Officer of Pacific Rubiales commented: "We are very pleased with the results of the Bid Round and the acquisition of these high potential blocks.  This strengthens and consolidates our position in the Equatorial Margin basins of South America, which we started to build with our investment in CGX Energy Inc. (which has blocks in Guyana), as well as our position in Brazil`s offshore Santos Basin, where we have had recent oil discoveries.  We are also pleased to be partnered with QGEP, which is one of Brazil`s largest oil companies and with Premier, a global oil producer."

Foz do Amazonas Basin

The Company, in a consortium, was awarded the Block FZA-M-90, located in the deep water offshore Sector AP1.  The consortium consists of QGEP as operator of the block with a 35% participating interest, Premier with a 35% participating interest, and PRE with a 30% participating interest.

The exploration work commitments include a 3D seismic program over the entire block, plus the drilling of one exploration well.  The award includes a signature bonus payable to the ANP of R$ 54.1 million (U.S.$27 million).

Pará-Maranhão Basin

The Company participated in a consortium with QGEP and was awarded Blocks PAMA-M-265 and PAMA-M-337, both located in the deep water offshore Sector SPAMA-AP1.

In Block PAMA-M-265, the Company will have a 70% participating interest, while in Block PAMA-M-337 the Company will have a 50% participating interest, with the remaining interest held by QGEP. The exploration work commitments include 3D seismic over each block, plus the drilling of one exploration well on Block PAMA-M-337.  The award includes a signature bonus of R$10.1 million (U.S.$5 million) for Block PAMA-M-265 and R$70.4 million (U.S.$35 million) for Block PAMA-M-337, payable to the ANP. Both blocks will be operated by QGEP.

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.

Advisories

Cautionary Note Concerning Forward-Looking Statements

This news 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, Guatemala or Peru; 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 14, 2012 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 news release due to, among other factors, difficulties or interruptions encountered during the production of hydrocarbons.

Translation

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.

Image with caption: "Map of award blocks (CNW Group/Pacific Rubiales Energy Corp.)". Image available at: http://photos.newswire.ca/images/download/20130516_C7575_PHOTO_EN_26803.jpg




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