Pacific Rubiales Announces 2007 Year-End Results and Filing of Reserve Summaries for 2007



    TORONTO, March 31 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PEG)
announced today results for the year ended December 31, 2007 as well as the
filing of its 2007 Reserve Summaries.

    2007 Year-end Results

    Pacific Rubiales reported net income of US$17.8 million or US$0.05 per
share for the year on gross production of 3.72 million barrels (net 1.34
million) of heavy crude oil and net sales of US$80.4 million as compared to a
net loss of US$0.2 million or nil per share in the previous year, in which no
production or revenues were recorded. The 2007 results primarily relate to the
period starting July 16, 2007, the date on which it acquired its initial 75%
interest in Rubiales Holdings Limited (now a wholly owned subsidiary of the
company). Prior to that acquisition the company had no active business.
    With the acquisition of the Rubiales oil field in July 2007, the company
became a producer of heavy oil, and throughout the year and into 2008 has
steadily increased its production at the field. With the acquisition of
Pacific Stratus in January 2008, the company added significant exploration
upside, as well as gas production at La Creciente.

    2007 Reserves Summaries

    The company also announced that it has filed two Form 51-101F1 "Statement
of Reserves Data and Other Oil and Gas Information" with Canadian securities
authorities and on SEDAR at www.sedar.com. Although Petro Rubiales Energy and
Pacific Stratus Energy effected an amalgamation on January 23, 2008 to form
Pacific Rubiales Energy Corp., the companies were not combined as at
December 31, 2007. Accordingly, the company has filed Statements of Reserve
Data for each of Petro Rubiales Energy and Pacific Stratus Energy as at
December 31, 2007, each of which is separately summarized below.
    The reports are in compliance with National Instrument 51-101 "Standards
of Disclosure for Oil and Gas Activities" (NI51-101) and are based upon 2007
year end reserve evaluation reports prepared by Petrotech Engineering Ltd.,
independent petroleum engineering consultants in Burnaby, British Columbia.
    A summary of the reserves and reserve reconciliation from the final
Statement of Reserve Data for the company (but excluding Pacific Stratus) is
set out below. The reserves shown are the company's working interest share
before deducting royalties (Gross) and after deducting royalties (Net).
Royalties are 20.0%.

    
    Petro Rubiales                                             Heavy Oil

                                                            Gross        Net
                                                         (million   (million
    Reserve Category                                          bbl)       bbl)
    ----------------                                     ---------  ---------
    (a) Proved developed producing                           11.8        9.4
    (b) Proved developed non-producing                        1.3        1.0
    (c) Proved undeveloped                                   49.6       39.7
    (d) Proved (in total)                                    62.7       50.2
    (e) Probable (in total)                                  58.2       46.5
    (f) Proved plus probable (in total)                     120.9       96.7
    (g) Possible (in total)                                  21.3       17.1
    (h) Proved plus probable plus possible (in total)       142.2      113.8


    The reserves shown are for comparative purposes only, and are estimates
only. Actual reserves on the company's properties may be greater or less than
those calculated.
    A summary of the reserves and reserve reconciliation from the final
Statement of Reserve Data for Pacific Stratus is set out below. The reserves
shown are the company's working interest share before deducting royalties
(Gross) and after deducting royalties (Net). Royalties vary between 6.4% and
20.0%, depending on total production.


    Pacific Stratus                                L&M Oil        A&NA Gas

                                               Gross     Net   Gross     Net
    Reserve Category                           (Mbbl)  (Mbbl)   (Bcf)   (Bcf)
    ----------------                           ------  ------  ------  ------
    (a) Proved developed producing             2,686   2,172   248.4   230.5
    (b) Proved developed non-producing           150     121    17.0    15.9
    (c) Proved undeveloped                     1,968   1,620   147.8   137.4
    (d) Proved (in total)                      4,805   3,913   413.2   383.8
    (e) Probable (in total)                    1,886   1,547   146.0   135.7
    (f) Proved plus probable (in total)        6,690   5,460   559.3   519.5


    The reserves shown are for comparative purposes only, and are estimates
only. Actual reserves on the company's properties may be greater or less than
those calculated.
    The following reconciles the reserves reported by Pacific Stratus in 2006
to those contained in Pacific Stratus's 2007 Statement of Reserve Data. No
reconciliation has been prepared for Petro Rubiales as this is the first year
it has filed under NI51-101.


                                        Product Type
                            L&M Oil                        A&NA Gas
                         Gross Reserve                  Gross Reserve

                                     Proved +                       Proved +
                 Proved   Probable   Probable   Proved   Probable   Probable
    Description   (Mbbl)     (Mbbl)     (Mbbl)    (Bcf)      (Bcf)      (Bcf)
    -----------  -------  ---------  ---------  -------  ---------  ---------
    December
     31, 2006   5,575.4    2,647.2    8,222.6    130.5      508.3      638.8
    Extensions
     and
     improved
     recovery    (911.9)  (1,076.1)  (1,988.0)     0.0        0.0        0.0
    Technical
     revisions    143.0        0.0      143.0    238.8     (372.1)    (133.3)
    Discoveries   611.4      314.7      926.1     41.8        9.8       51.6
    Acquisitions    0.0        0.0        0.0      0.0        0.0        0.0
    Dispositions    0.0        0.0        0.0      0.0        0.0        0.0
    Economic
     factors       76.5        0.0       76.5      2.1        0.0        2.1
    Production   (689.9)       0.0     (689.9)     0.0        0.0        0.0
    December
     31, 2007   4,804.5    1,885.8    6,690.4    413.2      146.0      559.3
    

    Under the NI51-101 guidelines, proved reserves are reserves that have a
90% chance of being exceeded at the reported level. Proved reserves, by
definition, are conservative. Nine times out of ten actual reserves will be
greater than the proved estimate. Proved plus probable reserves are defined as
those reserves that have a 50% probability of being exceeded at the reported
level. They are the best estimate, or the most realistic case. It is equally
likely that the actual reserves will be higher or lower than the estimate.
    Commenting on the annual results and reserves summaries, Ronald Pantin,
Chief Executive Officer of the company stated, "The numbers speak for
themselves. We had a very successful 2007, accomplishing quite a lot in just
over five months. We grew our reserves, production and netbacks, and we look
forward to continued improvement in our prospects in 2008."
    Complete Financial Statements and Management's Discussion and Analysis
are available on SEDAR at www.sedar.com .

    Pacific Rubiales, a Canadian-based company and producer of natural gas
and heavy crude oil, owns 100 percent of Meta Petroleum Limited, a Colombian
oil operator which operates the Rubiales and Piriri oil fields in the Llanos
Basin in association with Ecopetrol S.A. the Colombian, national oil company.
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. Pacific Rubiales has a current net production of approximately
19,050 barrels of oil equivalent per day, with working interests in the
Rubiales, Piriri and Quifa concessions and the Caguan, Dindal, Rio Seco,
Puli B, La Creciente, Moriche, Guama, Arauca, Tacacho and Jagueyes blocks in
Colombia and blocks 135, 137 and 138 in Peru.

    Forward-looking statements: This document contains statements about
expected or anticipated future events and financial results that are
forward-looking in nature and as a result, are subject to certain risks and
uncertainties, such as general economic, market and business conditions, the
regulatory process and actions, technical issues, new legislation, competitive
and general economic factors and conditions, the uncertainties resulting from
potential delays or changes in plans, the occurrence of unexpected events, and
the Company's capability to execute and implement its future plans. Actual
results may differ materially from those projected by management. For such
statements, we claim the safe harbour for forward-looking statements within
the meaning of the Private Securities Legislation Reform Act of 1995.

    %SEDAR: 00007953E




For further information:

For further information: Ronald Pantin, Chief Executive Officer or Jose
Francisco Arata, President, (416) 362-7735

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Pacific Rubiales Energy Corp.

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