TORONTO, March 18, 2013 /CNW/ - 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
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
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.
For further information:
Christopher (Chris) LeGallais
Sr. Vice President, Investor Relations
+1 (647) 295-3700
Sr. Manager, Investor Relations
+57 (1) 511-2298
Manager, Investor Relations
+57 (1) 511-2319