Pacific Rubiales Announces Financial Results for the Quarter Ended March 31, 2009



    TORONTO, May 15 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE)
announced today the release of its unaudited consolidated financial results
for the three month period ended March 31, 2009, together with its
Management's Discussion and Analysis. These documents are posted on the
company's website and SEDAR: www.sedar.com.
    Ronald Pantin, Chief Executive Officer, commented: "I am pleased with our
first quarterresults that show increases in both revenue and EBITDA. This is
largely due to our over 60% increase in production from the same prior period
last year, an achievement that demonstrates our leadership among the Colombian
E&Ps. We remain focused on executing on our internal growth strategy as the
ODL pipeline construction moves steadily toward completion, on time and on
budget."
    The company's senior management will discuss the company's financial
results at the annual shareholders meeting on Thursday, May 21, 2009 at 10:00
am Bogota time (11:00am EDT). The meeting will take place in the Monserrate
Room of the Club Nogal, located in Bogota, Colombia.
    Management will have a live webcast of the AGM beginning at 10:00 am
Bogota time (11:00 am EDT). Analysts and interested investors are invited to
participate as follows:

    
    Webcast link:
    www.pacificrubiales.com.co/webcast or www.simplexsa.com/pre

    Conference call:

    Canada: 416-644-3419
    U.S.:  1-800-594-3615
    In addition, please note the following corporate reporting filing dates
for the remainder of 2009:

    August 14, 2009 - Q2/09 Financial Results
    November 14, 2009 - Q3/09 Financial Results

    First Quarter 2009 Results Summary (Figures in US$ unless otherwise
    stated)

    -   In the first quarter of 2009, revenues increased to $110.0 million
        from $94.9 million in the first quarter of 2008, primarily due to
        increased production despite lower realized crude oil prices in the
        first quarter of 2009.

    -   EBITDA amounted to $56.7 million, which represented a 43% increase to
        the first quarter 2008 figure of $39.7 million. EBITDA from
        international sales represented 71% of this amount, while EBITDA from
        gas and domestic sales contributed 19% and 10%, respectively.

    -   During the first quarter of 2009, the Company continued to be among
        the most dynamic E&P companies operating in Colombia, totalling an
        increase of 11,397 boe/d over the prior period of 2008 or 61% from
        all the fields it operates, both oil and gas. This growth in operated
        production came as a result of increases in the Rubiales field (8,316
        bbl/d) and development of other producing assets (3,081boe/d).

    -   On March 3 2009, the Company announced the independently certified
        Statement of Reserves Data and Other Oil and Gas Information for all
        of the Company's assets, which estimated gross working interest
        proved plus probable (2P) reserves to be 247 mmboe. Proven reserves
        increased 50%, from 136 mmboe at the end of 2007, to 204 mmboe at the
        end of 2008. These reserves represent almost one barrel of net proven
        reserves (P1) per outstanding share.

    -   In the period ended March 31, 2009 the Company drilled the
        exploratory well Mirla Negra 1 which reached a measured depth of
        6,237 feet and was completed and tested successfully during April
        2009. As well, the Company acquired 180 km(2) of 3D seismic in the
        Alicante Block and is completing the acquisition of 50 km of 2D
        seismic for the Alhucema Block, for a total expenditure of $8.7
        million.

    -   The Company concluded negotiations with Ecopetrol which resulted in
        the signature of a binding Memorandum of Understanding ("MOU") on
        April 7, 2009, to pursue the evaluation of Synchronized Thermal
        Additional Recovery ("STAR") technology at the Rubiales Field. The
        MOU not only outlines the mechanism by which both companies will
        ascertain the success of the tests and pilot project, but also
        establishes a path forward to the structuring of an eventual contract
        between the two parties for the commercial application of the
        technology for the economic life of the Rubiales field.

    -   During the first quarter 2009 the Company handled an average of
        30,000 bbl/d (a 23% increase from 2008 average) through the new PF2
        facility in Guaduas, generating revenues of $4.7 million.

    -   In January 2009, the Company reached a record daily delivery of 65
        mmscfd from La Creciente natural gas field, which is the current
        capacity of the transport system. The Company consolidated its
        position as an important player in the commercialization of natural
        gas in the Colombian domestic market, achieving average sales of
        approximately 48.5 mmbtu/day during the first quarter of 2009 at a
        price of $4.40/mmbtu, which represents an estimated premium of $0.66
        above the average market price, or 13%.

    -   On March 12, 2009 the Colombian Branch of Oleoductos de los Llanos
        Orientales, S.A. ("ODL") signed a debt facility denominated in
        Colombian Pesos in the amount of approximately $200 million with
        AVAL, a syndicate of local banks led by Banco de Bogota.

    -   On May 5, 2009 the Company announced that it has closed on initial
        commitments totaling $180 million under a previously announced senior
        secured revolving credit facility of up to $250 million. The facility
        consists of $50 million commitments from each of BNP Paribas, Calyon
        and Banco Davivienda S.A. and $30 million from West LB A.G., each a
        lead arranger for the facility. 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) which will increase the production capacity of the
        Rubiales field up to 100,000 gross bbl/d by the end of 2009, as well
        as for general working capital purposes and the repayment of short-
        term debt.

    -   The capital expenditures during the first quarter of 2009 were $77.6
        million which is net of the 40% taxable benefit of $11.4 million that
        the Company is eligible to receive on qualified capital expenditures
        in Colombia. $13.7 million went into exploration activities,
        including social and environmental studies, seismic acquisition and
        processing airborne geophysics, and drilling ($13 million to seismic
        and $0.7 million to drilling of wells); $46.4 million was invested in
        the expansion and construction of infrastructure and $17.5 million in
        production drilling activities. The remaining balance of $23.2
        million corresponds to the net capital expenditures capitalized in
        the first quarter of 2009 and pending payment as of March 31, 2009.
        Total cash capital expenditures were $100.8 million compared to $26.0
        million in the previous year. The company has budgeted $379 million
        in 2009 for capital expenditures.

    -   The Company's interest in ODL is 35% with the balance of 65% owned by
        Ecopetrol S.A. ODL entered into an EPC contract to build the 235 km,
        24 inch pipeline by September 30, 2009. The budgeted cost of the
        project is estimated at $530 million. As of today, the pipeline
        construction is 70% completed and on time for completion in
        August, 2009. Total expenditures amounted to $266 million.
        Construction disbursements during the first quarter of 2009 were $67
        million.
    

    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 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 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 March
31, 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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