Pacific Rubiales Announces Closing of US$180 Million in Initial Commitments as Part of up to US$250 Million Senior Secured Revolving Credit Facility



    TORONTO, May 5 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE) is
pleased to announce that it has closed on initial commitments totaling US$180
million under a previously announced senior secured revolving credit facility
of up to US$250 million. The facility consists of US$50 million commitments
from each of BNP Paribas, Calyon and Banco Davivienda S.A. and US$30 million
from West LB A.G., each a lead arranger for the facility. The company will
proceed with initial drawdown under the facility in the coming days.
    The facility is a senior secured revolving credit facility maturing on
June 30, 2013, and bears interest at LIBOR plus 5.50%. The company will pay
commitment fees of 1.50% on the unutilized portion of any outstanding
commitments under the facility. Subject to customary acceleration events set
out in the credit agreement executed among the parties, or unless terminated
earlier by the company without penalty, repayment of outstanding principal on
the facility will be made in equal quarterly installments following the second
anniversary of the closing date.
    The facility is subject to a borrowing base and secured by certain assets
of the company's subsidiaries operating in Colombia. The initial borrowing
base was determined by the lenders at US$250 million but will be subject to
re-determination semi-annually on April 1 and October 1 of each year; both the
company and the lenders have discretion to request limited additional
re-determinations. The company and BNP Paribas, the global coordinator for the
facility, are currently involved in advanced discussions with additional local
Colombian and international lenders to obtain further commitments up to the
amount of the current borrowing base.
    The company expects to use the proceeds from the facility for the
development of its oil infrastructure (including costs of drilling, oil
dehydration and water treatment) to increase the production capacity of the
Rubiales and Piriri fields up to 100,000 gross barrels of oil per day by the
end of 2009, as well as for general working capital purposes and the repayment
of short-term debt, subject to certain restrictions set out in the credit
agreement.
    The availability of the facility allows the company to maintain its
originally budgeted capital expenditure plan for 2009, thus paving the way for
further growth in production and in the previously announced exploration
program.
    The company is being advised on the financing by Endeavour Financial
International Corporation.

    Pacific Rubiales is a Canadian-listed producer of oil and natural gas.
The company is the largest independent oil and gas exploration and production
company in Colombia. Pacific Rubiales owns 100 percent of Meta Petroleum
Limited, which operates the Rubiales and Piriri oil fields in Colombia's
Llanos Basin in association with Ecopetrol S.A., the Colombian national oil
company, as well as Pacific Stratus Energy and Kappa Energy Holdings.
    The company is focused on identifying growth opportunities particularly
within the Eastern Llanos Basin as well as in other areas in Colombia and
northern Peru. The company has a robust and growing reserve base, and is
maximizing future production prospects through its exploration activities.
Pacific Rubiales has a current net production of approximately 34,000 barrels
of oil equivalent per day, with working interests in 34 blocks in Colombia and
Peru.
    Boe may be misleading, particularly if used in isolation. A boe
conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.

    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 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 April 1,
2009 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.

    %SEDAR: 00007953E




For further information:

For further information: Mr. Ronald Pantin, Chief Executive Officer and
Director, Mr. Jose Francisco Arata, President and Director, (416) 362-7735;
Ms. Belinda Labatte, (647) 436-2152

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Pacific Rubiales Energy Corp.

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