TORONTO, Sept. 18, 2012 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE;
BVC: PREC; BOVESPA: PREB) is pleased to provide an update on certain
environmental permits it has in process or pending with the Autoridad
Nacional de Licencias Ambientales ("ANLA"), on exploration and
development properties in Colombia.
Pacific Rubiales currently has 12 major licensing processes that are in
front of the ANLA. All of these are in full compliance with regulations
and processes governing environmental licenses in Colombia. Five of the
licenses have been granted and seven are pending or in progress.
Regarding these different licensing processes, the Company highlights
In the CPE-6 exploration block, the ANLA requested additional
information on August 13, 2012 in support of the environmental permit
application. This information is currently being collected by the
Company within an established time period and the permit is expected to
be granted by the end of October 2012. The expected timing will be
sufficient to allow the Company to complete its planned drilling
program of six exploration and appraisal wells and conduct extended
production testing of wells drilled on the block, before year-end.
In the CPO-12 exploration block, the ANLA granted a provisional
environmental license on July 7, 2012. The Company is expecting final
approval according to established procedure before the end of September
2012. Three exploration wells are planned for the block prior to
In the Quifa North exploration block, the ANLA rejected a modification
of the environmental license for a part of the northwestern portion of
the block on June 4, 2012. The Company presented an appeal for reversal
on June 25, 2012 and is waiting for a final response from the ANLA.
This modification does not impact or affect the Company's ongoing
development of the Quifa SW field or the new commercial development of
the portion of Quifa North called Cajua, which was announced on August
In the Rubiales Field, on August 8, 2012, the ANLA granted authorization
to expand the water injection capacity by 400 Mbbl/d, reaching a total
water injection capacity of approximately 2 MMbbl/d for the field. This
will allow the Company to increase total oil production in the field to
a target level of 190 Mbbl/d by the end of this year. The Company also
has additional water injection permits pending which will allow further
production increases in 2013 and which it expects to receive by
Ronald Pantin, Chief Executive Officer of the Company, commented: "These
licensing processes correspond to the regular procedures that all oil &
gas operators in Colombia must follow through with the ANLA, and they
do not compromise the future plans and production projections of the
Company whatsoever. We recognize the efforts the ANLA has made to
enhance and streamline the process to speed up licenses for oil
producers in Colombia and we look forward to working with them in the
These permits were discussed in a Bloomberg news article written by
reporter Heather Walsh yesterday afternoon. Pacific Rubiales can
confirm that it was not contacted by Bloomberg for comment or
confirmation by the Company as to the accuracy of the contents of the
subject article, prior to its publication. The Company regrets that, as
a result of not being given the opportunity to comment on the article,
Bloomberg gave the wrong and negative impression that various permit
applications had been delayed or denied, the result of which was
significant damage to the Company's market capitalization.
Pacific Rubiales, a Canadian-based company and producer of natural gas
and heavy crude oil, owns 100 percent of Meta Petroleum Corp., a
Colombian oil operator which operates the Rubiales, Piriri and Quifa
oil fields in the Llanos Basin in association with Ecopetrol, S.A., the
Colombian national oil company, and 100 percent of Pacific Stratus
Energy Corp. which operates the La Creciente natural gas field. The
Company is focused on identifying opportunities primarily within the
eastern Llanos Basin of Colombia as well as in other areas in Colombia
and northern Peru.
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, 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 press release
due to, among other factors, difficulties or interruptions encountered
during the production of hydrocarbons.
Billion cubic feet.
Billion cubic feet of natural gas equivalent.
Barrel of oil.
Barrel of oil per day.
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.
Barrel of oil equivalent per day.
Thousand barrels of oil equivalent.
Million barrels of oil equivalent.
Thousand cubic feet.
West Texas Intermediate Crude Oil.
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