TORONTO, March 21, 2014 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE)
(BVC: PREC) (BOVESPA: PREB) announced today that the Company has filed
a revision to its Form 51-101F1 - Statement of Reserves Data and Other Oil and Gas Information as of December 31, 2013, which was originally filed on March 13, 2014
(the "Revised F1 Report").
The reason the Revised F1 Report has been filed by the Company is that
on March 21, 2014 the Company received the following revised reserves
reports from RPS Energy Canada Ltd. ("RPS"): (i) the report dated March 21, 2014, effective December 31, 2013,
entitled "Reserves Certification Report for the Rubiales Field,
Colombia" and (ii) the report dated March 21, 2014, effective December
31, 2013, entitled "Reserves Certification Report, Year End 2013, Quifa
Field, South West Region, Colombia" which indicated that the
corrections described below needed to be made to the Company's Form
51-101F1 - Statement of Reserves Data and Other Oil and Gas Information as of December 31, 2013.
The Revised F1 Report incorporates corrections to the Company's
disclosure of net present value of future net revenue (forecast case),
additional information concerning future net revenue (forecast case)
and future development costs in order to account for an error in
calculating diluent costs associated with the Rubiales and Quifa SW
Fields. The Revised F1 Report also corrects net reserves calculations
at the Quifa SW Field to properly account for diluent costs of the
project and the allocation of diluent costs and volumes in the
calculations of net revenue interest and Additional Participation on
Production ("PAP") due to Ecopetrol, S.A. RPS has recognized that these revisions were
necessary due to a discrepancy in their analysis and has worked with
the Company to put in place these revisions.
The Revised F1 Report discloses, in respect of the net present value of
future net revenue (forecast case), an increase in the undiscounted
present value of future net revenue after deducting future income taxes
of U.S.$1.6 billion, bringing the undiscounted present value of future
net revenue after deducting future income taxes to U.S.$18.5 billion.
The 5%, 10%, 15% and 20% discounted rates for present value of future
net revenue after deducting future income taxes are amended as
follows: 5% increases to U.S.$13.5 billion from U.S.$12.0 billion,
10% increases to U.S.$10.5 billion from U.S.$9.1 billion, 15%
increases to U.S.$8.5 billion from U.S.$7.2 billion and 20% increases
to U.S.$7.1 billion from U.S.$5.8 billion. In addition, the Revised F1
Report includes a decrease of 5.9 MMbbl of Total Proved plus Probable
net after royalties reserves at the Quifa SW Field which has resulted
in the adjustment of the Company's total Total Proved plus Probable net
after royalties reserves to 613.3 MMboe from 619.2 MMboe.
Readers are directed to the full Revised F1 Report which is available at
www.sedar.com and on the Company's website at www.pacificrubiales.com.
Pacific Rubiales, a Canadian company and producer of natural gas and
crude oil, owns 100% of Meta Petroleum Corp., which operates the
Rubiales, Piriri and Quifa heavy oil fields in the Llanos Basin, and
100% of Pacific Stratus Energy Colombia Corp., which operates the La
Creciente natural gas field in the northwestern area of Colombia.
Pacific Rubiales has also acquired 100% of Petrominerales Ltd., which
owns light and heavy oil assets in Colombia and oil and gas assets in
Peru, 100% of PetroMagdalena Energy Corp., which owns light oil assets
in Colombia, and 100% of C&C Energia Ltd., which owns light oil assets
in the Llanos Basin. In addition, the Company has a diversified
portfolio of assets beyond Colombia, which includes producing and
exploration assets in Peru, Guatemala, Brazil, Guyana and Papua New
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, Peru, Guatemala, Brazil, Papua New
Guinea or Guyana; 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; the impact of
environmental, aboriginal or other claims and the delays such claims
may cause in the expected development plans of the Company and the
other risks disclosed under the heading "Risk Factors" and elsewhere in
the Company's annual information form dated March 13, 2014 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.
The recovery and reserves estimates of crude oil and natural gas
reserves provided in this news release taken from the independent
reserve reports are estimates only, and there is no guarantee that the
estimated reserves will be recovered. Actual crude oil and natural gas
reserves may eventually be greater than or less than the estimates
The estimated values disclosed in this news release do not represent
fair market value. The estimates of reserves and future net revenue for
individual properties may not reflect the same confidence level as
estimates of reserves and future net revenue for all properties, due to
the effects of aggregation.
This news release was prepared in the English language and subsequently
translated into Spanish and Portuguese. In the case of any differences
between the English version and its translated counterparts, the
English document should be treated as the governing version.
The term "boe" is used in this news release. Boe may be misleading,
particularly if used in isolation. Aboe conversion ratio of 5.7 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.
The Company's natural gas reserves are contained in the La Creciente,
Guama and other bocks in Colombia as well as in the Piedera Redonda
field in Block Z-1, Peru. For all natural gas reserves in Colombia,
boe's have been expressed using the Colombian conversion standard of
5.7 Mcf: 1 bbl required by the Colombian Ministry of Mines and Energy,
and for all natural gas reserves in Peru, boe's have been expressed
using the Peruvian conversion standard of 5.626 Mcf: 1 bbl required by
Perupetro S.A. If a conversion standard of 6.0 Mcf: 1 bbl was used for
all of the Company's natural gas reserves,this would result in a
reduction in the Company's net P1 and 2P reserves of approximately 4.9
and 6.9 MMboe, respectively.
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.
PDF available at: http://stream1.newswire.ca/media/2014/03/21/20140321_C6609_DOC_EN_38247.pdf
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
+1 (416) 362-7735