TORONTO, May 16, 2013 /CNW/ - 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
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.
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.
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.
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
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