TORONTO, June 15 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC), announced today that Ecopetrol, the company's partner in the development of the Rubiales field, has given its approval to the request to expand the commercial area of the Rubiales field, located in the Llanos Basin in Colombia.
Ronald Pantin, Chief Executive Officer, commented: "We are very pleased with this approval, which gives the company all it requires to grow production and reach our stated production goal at Rubiales of 170,000 barrels per day by the end of 2010."
This approval adds to the commercial area a total of 7,135 hectares (17,631 acres) taking the area to a total of 29,447 hectares (72,839 acres). Ecopetrol has formally agreed to the targets of taking the field, composed of the Rubiales and Piriri blocks, to 170,000 barrels per day. Capacity expansion is underway, and construction of CPF2 at the Rubiales field is on schedule for completion in the fourth quarter, 2010. The field currently produces approximately 122,500 barrels per day. This is an important step in the company's growth strategy and paves the way for future expansion not only in the block, but also in the region.
The Rubiales field is adjacent to the recently declared commercial field of Quifa in which Ecopetrol and Pacific Rubiales (through its affiliate Meta Petroleum) are also partners.
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 at 56,700 barrels of oil equivalent per day, after royalties, with working interests in 32 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.
SOURCE Pacific Rubiales Energy Corp.
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) 428 7035