Petro Rubiales shareholder update

    Successful 2007 is foundation for exciting growth in 2008

    VANCOUVER, Jan. 8 /CNW/ - Petro Rubiales Energy Corp. (the "Company" or
"Petro Rubiales") is pleased to provide shareholders with an update on its
first calendar year of operations in the Republic of Colombia. During 2007,
the Company transformed itself into a leading independent oil production
company in Colombia and created a robust base to continue building the Company
during 2008. In summary, Petro Rubiales completed the following key milestones
in 2007:

    -   Transformed itself through the acquisition of 100% interest in Meta
        Petroleum Limited
    -   94% increase in net oil production
    -   More than doubled netbacks
    -   Upgraded 85 million barrels of possible and probable reserves to
        proven reserves
    -   Remained focussed on safety
    -   Positioned Company for successful participation in upcoming bid
        rounds in Colombia
    -   Announced merger with Pacific Stratus Energy Ltd.
    -   Signed MOU with ECOPETROL S.A. for 230km pipeline connecting Rubiales
        to export market
    -   Awarded supplier contract to Brazilian manufacturer TENARIS

    On July 16, 2007 and December 4, 2007 the Company closed two transactions
to acquire 100% interest of Rubiales Holdings which holds a 100% interest in
Meta Petroleum Limited. Petro Rubiales, through the injection of new capital
and experienced management, has managed to reinvigorate the company as
demonstrated through its technical and economic performance.
    The arrival of the new management team in July, 2007 has resulted in a
number of milestones having been reached. Net oil production has almost
doubled from 4,700 barrels per day to 9,100 barrels per day. Implementation of
a new transport and marketing procedure has enabled Petro Rubiales to export
3,000 barrels per day at more than double the previous netback - an increase
in netback from US$23.40 per barrel to US$47.25 per barrel.
    Through an aggressive drilling plan of delineation wells, which is still
ongoing, the Company has successfully re-classified 85 million barrels of
reserves from possible and probable to proven, giving an indication of the
economic value that is still to be tapped from the reservoir.
    On the operational side, Meta Petroleum had an outstanding year,
reporting only two minor workplace injuries; in spite of clocking almost twice
the man-hours of 2006 as the operations continue to ramp-up in scale.
    During the year, the Company successfully participated in the "Mini
Ronda" concession bidding round and anticipates being awarded the E&P
"Jagueyes" block by the end of January. The Company was also invited by the
Colombian regulatory agency (ANH) to participate in the Heavy Oil Project
(DCP) that stands to be the next frontier for the Colombian oil industry.
    In mid November, the Company announced a merger with Pacific Stratus
Energy Ltd., through a court approved plan of arrangement. The combined entity
is expected to have a fully diluted market capitalization of approximately
C$2.5 billion and will result in the formation of Colombia's largest
independent E&P Company.
    In the last few days of December, the Company announced the signing of a
Memorandum Of Understanding (MOU) with ECOPETROL S.A. for the construction of
a 230 km oil pipeline that will allow for the transportation of the crude oil
produced out of the Rubiales and Piriri fields, located in the Meta Department
in the Republic of Colombia, to the export market once it is completed in the
second half of 2009. The preliminary estimate for the pipeline project calls
for an investment in excess of US$300 million, of which, approximately 70%
will be financed by debt, with Petro Rubiales to provide 35% of the remaining
30% equity requirement.
    The Company has also announced that as a result of a worldwide bidding
process, with the participation of 9 suppliers, and after close consultation
with its partner ECOPETROL S.A., it has decided to award the contract for
supplying the material for the pipeline to TENARIS, one of the foremost
manufacturers and suppliers of tubular products for the oil industry. The
material supply contract will amount to US$100 million and delivery from the
TENARIS manufacturing plant in Brazil will commence in May 2008.
    During 2008 the Company expects to build on these early successes and
consolidate its position as the premier independent oil company in Colombia.

    Petro Rubiales, a Canadian-based company and producer of heavy crude oil,
owns 100 percent of Meta Petroleum Limited, a Colombian oil and gas 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.

    Forward-looking statements: 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.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this news release.

For further information:

For further information: Mr. Ronald Pantin, Chief Executive Officer and
Director, Tel: (604) 688-9180; Dr. Sally Eyre, Senior Vice President,
Corporate Development, (604) 688-9180; Or visit: or

Organization Profile

Pacific Rubiales Energy Corp.

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