TORONTO, Sept. 16 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE) announced today that it has received a new Statement of Reserves Data for the Rubiales-Piriri field. This reserves update complements the update announced on September 3, 2009.
RPS, located in Houston, Texas has provided an independent reserve evaluation of the Rubiales/Piriri field, with an effective date of June 30, 2009. For this midyear update, RPS has relied upon the updated geologic static model, prepared by Meta Petroleum, which incorporates the results of the new wells drilled this year.
According to the RPS Statement of Reserves Data, the Rubiales/Piriri field had proved reserves (P1) of 354.8 MMbbl at June 30, 2009 compared with 270.6 MMbbl at December 31, 2008; and proved plus probable reserves (P1+P2) of 429.7 MMbbl at June 30, 2009 compared with 372.8 at December 31, 2008. An additional 55.1 MMbbl may be classified as possible reserves (P3) at June 30, 2009 compared with 30.5 at December 31, 2008.
The reserves are forecasted to the end of the concessions' terms, i.e. through June 2016. No reserves in any category have been attributed to potential production beyond the term of the concession.
Total net after royalty proved reserves (calculated in accordance with National Instrument 51-101 "Standards of Disclosure for Oil and Gas Activities" (NI 51-101)) were 119.5 MMbbl at June 30, 2009 compared with 92.6 MMbbl at year-end 2008, an increase of 29.05 %. Total net after royalty proved plus probable reserves (calculated in accordance with NI 51-101) were 144.7 MMbbl at June 30, 2009 compared with 126.8 MMbbl at year-end 2008, an increase of 14.12 %.
RPS Reserve Statement
Total Field Meta Petroleum
Gross Working Interests,
Reserves Category Reserves MMbl MMbl
Proved Gross Net
Developed Producing 59.9 25.5 20.3
Developed Non Producing 15.0 6.3 5.0
Undeveloped 279.9 118 94.2
Total Proved (P1) 354.8 149.8 119.5
Probable (P2) 74.9 31.6 25.2
Total Proved + Probable (P1+P2) 429.7 181.4 144.7
Possible (P3) 55.1 22.5 17.9
55.1 22.5 17.9
Total P1+P2+P3 484.8 203.9 162.6
The reserve data in 2008 and 2009 have been determined in accordance with NI 51-101 and the Canadian Oil and Gas (COGE) Handbook by RPS, an independent qualified reserve evaluator. The reserve estimates in this release are based on forecast prices and costs and are estimates only. Actual reserves on the company's properties may be greater or less than those calculated. Under the National Instrument 51-101 guidelines, proved reserves are reserves that have a 90% chance of being recovered at the reported level. Proved reserves, by definition, are conservative. Nine times out of ten actual reserves will be greater than the proved estimate. Proved plus probable reserves are defined as those reserves that have a 50% probability of being recovered at the reported level. They are the best estimate, or the most realistic case. Proved plus probable plus possible reserves are at least a 10% probability that the quantities actually recovered will reach the reported level.
The RPS Statement of Reserves Data will be filed by the company on SEDAR by September 25, 2009.
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 Quifa block 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 38,000 barrels of oil equivalent per day, 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