Pacific Rubiales Announces Investment in Colombian Utility



    TORONTO, June 30 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PEG)
announced today that it has acquired a 21.7%, indirect interest in Promotora
de Energia Electrica de Cartagena & Cia, S.C.A. E.S.P. (Proelectrica), a
private, Cartagena, Colombia-based 90 megawatt electrical utility.
Proelectrica is a peak demand supplier to the local Cartagena utility and
therefore is paid a premium for its energy when supplied.
    Proelectrica is a reliable back-up generator for the Cartagena area and
provides critical transmission system balance support to the area.
Proelectrica is well-positioned to benefit from the local, demand-driven
electricity market. In addition, it is an environmentally friendly gas-fired
peak demand power plant and one of the most efficient thermal plants in the
Colombian Atlantic Region.
    Pacific Rubiales acquired its interest in Proelectrica through a US$9.0
million equity investment in Ronter Inc., a private Panamanian company which
holds all of the shares of Proelectrica and its related companies.
    Ronald Pantin, Chief Executive Officer of Pacific Rubiales, said "the
acquisition of an interest in Proelectrica makes strategic sense for Pacific
Rubiales. It has a gas-fired plant and aggressive expansion plans for the
Cartagena area, into which we supply our gas from La Creciente. Additionally,
Proelectrica is paid a premium as a peak demand energy supplier to the
fast-growing Cartagena area, making it an attractive investment in its own
right."
    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
21,000 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.

    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: Mr. Ronald Pantin, Chief Executive Officer and
Director, (604) 688-9180 or Mr. Jose Francisco Arata, President and Director,
(416) 362-7735

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Pacific Rubiales Energy Corp.

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