Pacific Rubiales Awarded Two Blocks in Colombian Heavy Oil Bidding Round



    TORONTO, July 17 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PEG)
announced today that it has been awarded Blocks CP-1 and CP-6 in the Heavy Oil
Round for the Llanos Basin of Colombia, organized by the Agencia Nacional de
Hidrocarburos de Colombia (ANH).
    A 100% interest in Block CP-1 has been awarded to Pacific Rubiales. This
block has an area of 989,963 hectares and is located in the northern part of
the basin on the border with Venezuela, east of the giant Canon Limon Oil
Field. Block CP-1 is also located at the eastern limit of the Arauca Technical
Evaluation Area, where the company is already performing exploration
activities. The total investment for this block will be US$31.1 million, which
will be spent on the acquisition of 410 kilometres of 2D seismic and the
drilling of one stratigraphic and three exploratory wells, to be performed
within 24 months from the signature of the contract.
    Block CP-6 was awarded to a consortium formed by Pacific Rubiales and
Talisman Energy Colombia, in which each company will have a 50% working
interest, with Pacific Rubiales acting as the operator. This block has an area
of 608,247 hectares and is located to the southwest of the Rubiales Oil Field
and the Quifa Association Contract. The total investment for this block will
be US$49.4 million, to be spent on acquiring 636 kilometres of 2D seismic and
the drilling of one stratigraphic and five exploratory wells. These activities
must be completed by the company within 24 months from the signature of the
contract.
    The company has already executed the bidding round minute and the company
expects that the ANH wil sign the definitive contracts by mid-August, 2008.
    Commenting on the outcome of this bidding process, Ronald Pantin, Chief
Executive Officer of the company, stated "We are very pleased with the results
of the bidding round because it validates our strategy and confirms our
commitment to develop heavy oil in Colombia. These properties fit well into
our portfolio and our area of expertise."

    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.

    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 28, 2008 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; Mr. Manfred
Kruger, Vice President, Investor Relations, (416) 362-7735

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Pacific Rubiales Energy Corp.

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