TORONTO, June 3, 2013 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE;
BVC: PREC; BOVESPA: PREB) announced today an increase of 50% to its
quarterly cash dividend. The Board of Directors approved an increase
in the dividend to U.S.$0.165 per common share from the previous U.S.
$0.110 per common share, payable on June 28, 2013 to shareholders of
record as of June 20, 2013 and to holders of Brazilian Depositary
Receipts (the "BDRs") of record as of June 17, 2013. The ex-dividend
date for shareholders trading on the Toronto Stock Exchange and the La
Bolsa de Valores de Colombia (or the Colombia Stock Exchange) as well
as for those trading BDRs on the Bolsa de Valores Mercadorias e Futuros
(or the Brazilian Stock Exchange) is June 18, 2013.
"Pacific Rubiales is committed to delivering a dividend that is
reliable, sustainable and competitive," commented Ronald Pantin, Chief
Executive Officer of the Company. "Today's 50% increase to our
dividend is a clear demonstration of our aim to balance long-term
growth with returns and our confidence in the sustainability of future
earnings and cash flow, under-pinned by our expectation of continued
growth in production.
"Our confidence is supported by a number of developments announced over
the past 12 months. These include the Company's strong reserves growth
and a large increase in Prospective Resources reported for year-end
2012, a continued diversification of the reserves base with the
Rubiales field now representing less than 19% of total net 2P reserves,
the development of a large and diversified exploration and development
portfolio, and a number of structural operating cost reduction
initiatives that are expected to materialize through the remainder of
The Company expects to continue paying a dividend on a quarterly basis
at this level. A formal dividend policy is not currently in place,
however, the Board of Directors of the Company is in the process of
developing such a policy.
The Company intends to designate all dividends as "eligible dividends"
for purposes of the Income Tax Act (Canada) unless a notification of change is otherwise posted on the
Company's website at www.pacificrubiales.com and on SEDAR at www.sedar.com. Provided designation is made, the dividend will be considered an
"eligible dividend" for tax purposes. An eligible dividend received by
a Canadian resident individual shareholder is entitled to the enhanced
dividend tax credit.
For shareholders trading on the Colombian Stock Exchange, the Colombia
peso equivalency shall be calculated based on the exchange rate as
certified by the "Central Bank" on the date of monetization and will be
published on the SIMEV website at the proper time.
With respect to the BDRs traded on the Brazilian Stock Exchange, the
Depositary Institution in Brazil will execute the exchange agreement as
of the date of the payment of the dividend to the holders of BDRs, on
or about June 18, 2013, for conversion purposes. Also, the holders of
BDRs registered on June 17, 2013 shall be entitled to receive the
dividends from the Depositary Institution on or about July 5, 2013.
The information in this release is not intended to be an exhaustive
discussion of all possible income tax consequences and considerations,
but a general guideline. It is not intended to be legal or tax advice
to any particular investor or potential investor. Investors or
potential investors are encouraged to seek advice from a qualified tax
advisor in their country of residence to obtain guidance with respect
to appropriate tax treatment of their distributions, their particular
tax consequences, and their individual reporting obligations.
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 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 Guinea.
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 news 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, Guatemala, Peru, Brazil, Papua New
Guinea and 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; and the other
risks disclosed under the heading "Risk Factors" and elsewhere in the
Company's annual information form dated March 13, 2013 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 news release due
to, among other factors, difficulties or interruptions encountered
during the production of hydrocarbons.
Prospective Resources are those quantities of oil and gas estimated to
be potentially recoverable from undiscovered accumulations. There is
no certainty that the Prospective Resources will be discovered. If
discovered, there is no certainty that it will be commercially viable
to produce any portion of the Prospective Resources. Application of
any geological and economic chance factor does not equate Prospective
Resources to Contingent Resources or reserves.
Readers should give attention to the estimates of individual classes of
resources and appreciate the differing probabilities of recovery
associated with each class. Estimates of remaining recoverable
resources (unrisked) include Prospective Resources that have not been
adjusted for risk based on the chance of discovery or the chance of
development and Contingent Resources that have not been adjusted for
risk based on the chance of development. It is not an estimate of
volumes that may be recovered. Actual recovery is likely to be less and
may be substantially less or zero.
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.
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
+57 (1) 511-2319