Reserve update - Net proved reserves up 445%, net proved and probable reserves up 84%



    TSX.V: PEG

    VANCOUVER, Jan. 9 /CNW/ - Petro Rubiales Energy Corp. (the "Company" or
"Petro Rubiales") is pleased to announce a significant increase in proved oil
reserves ("1P") and proved plus probable oil reserves ("2P"). The Company has
received a revised independent engineering and economic evaluation of its
assets from Petrotech Engineering Ltd. ("Petrotech") dated as of November 30,
2007 (the "Petrotech Report"). The Petrotech Report reflects the Company's
recent acquisition of the remaining 25% interest of Rubiales Holdings Limited
("RHL") as well as results from the ongoing drilling of its delineation wells.
    Highlights from the Petrotech Report, compared to the Company's May 2007
resource update, include:

    
    -   Total proved ("1P") reserves increased by 266% to 89.5 million
        barrels
    -   Net 1P reserves increased by 445% to 32.2 million barrels
    -   Total proved plus probable ("2P") reserves increased by 26% to
        230.8 million barrels
    -   Net 2P reserves increased by 84% to 87.1 million barrels
    -   Total proved plus probable plus possible reserves ("3P") of
        320.3 million barrels
    -   Net 3P reserves increased by 40% to 119.2 million barrels
    -   Total 3P NPV(10%) before income tax increased by 118% to
        US$2.9 billion

    The following table sets out the changes in 1P, 2P and 3P reserves as
calculated by Petrotech as of both May 31, 2007 and November 30, 2007.

    Summary of Reserves

    -------------------------------------------------------------------------
                          100% Working Int.  Net Heavy Oil    Net Heavy Oil
                                             (pre royalty)    (post royalty)
    Reserve Category           (MMbbl)          (MMbbl)          (MMbbl)
                           May '07 Nov '07  May '07 Nov '07  May '07 Nov '07
                         ----------------------------------------------------
    Proved (1P)               24.5    89.5      7.5    40.3      5.9    32.2
    Proved plus
     Probable (2P)           183.5   230.8     60.1   108.8     47.3    87.1
    Proved + Probable +
     Possible (3P)           328.4   320.3    107.6   149.0     85.0   119.2
    -------------------------------------------------------------------------
    

    In compiling its reserve reports, Petrotech used the definition of
reserves category and follows the guidelines from the Canadian Oil and Gas
Evaluation (COGE) Handbook. Petro Rubiales will be preparing a fiscal year-end
(December 31, 2007) reserve report for filing in accordance with Form 51-101
F1 of National Instrument 51-101 (Disclosure of Oil and Gas Activities) and
will file that year-end reserve update within 120 days of December 31, 2007.
    The Petrotech Report also includes an updated pre-tax cash flow model,
based on constant prices and costs. This model illustrates the significant
increase in net present value of the Rubiales field to US$2.9 billion, using a
10% discount rate and the P3 reserve basis. This current NPV (10%) of
US$2.9 billion is up 118% from the May 31, 2007 NPV (10%) of US$1.3 billion.
The table below provides further details for 1P, 2P and 3P reserves at a 0%
and 10% discount rates.

    
    Summary of Cash Flow Values

    -------------------------------------------------------------------------
                                           NPV Before Income Tax (in MMUS$)
                                         ------------------------------------
    Reserve Category                             0%               10%
                                          May '07  Nov '07  May '07  Nov '07
                                         ------------------------------------
    Proved (1P)                               102    1,369       82      853
    Proved plus Probable (2P)               1,187    3,647      725    2,101
    Proved + Probable + Possible (3P)       2,190    5,074    1,329    2,901
    -------------------------------------------------------------------------
    

    The constant prices used in the foregoing table were $80.84 per barrel
for 38 degree API blend, $85.15 per barrel for Naphtha, $41.14 per barrel for
12.5 degree API, and $73.59 per barrel for 18.5 degree API. All cash flow data
is in U.S. dollars and do not represent a fair market value.
    Commenting on the report, Ronald Pantin, CEO of Petro Rubiales, said: "I
am delighted that the Petro Rubiales team has been able to significantly
upgrade the Company's reserves in such a short period of time. Our upgraded
reserves, combined with the recently announced increase in both production
levels and netbacks, provide the Company with an excellent foundation for
further growth."

    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: www.sedar.com or
www.petrorubiales.com

Organization Profile

Pacific Rubiales Energy Corp.

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