TORONTO, Sept. 18, 2012 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC; BOVESPA: PREB) is pleased to provide an update on certain environmental permits it has in process or pending with the Autoridad Nacional de Licencias Ambientales ("ANLA"), on exploration and development properties in Colombia.
Pacific Rubiales currently has 12 major licensing processes that are in front of the ANLA. All of these are in full compliance with regulations and processes governing environmental licenses in Colombia. Five of the licenses have been granted and seven are pending or in progress. Regarding these different licensing processes, the Company highlights the following:
- In the CPE-6 exploration block, the ANLA requested additional information on August 13, 2012 in support of the environmental permit application. This information is currently being collected by the Company within an established time period and the permit is expected to be granted by the end of October 2012. The expected timing will be sufficient to allow the Company to complete its planned drilling program of six exploration and appraisal wells and conduct extended production testing of wells drilled on the block, before year-end.
- In the CPO-12 exploration block, the ANLA granted a provisional environmental license on July 7, 2012. The Company is expecting final approval according to established procedure before the end of September 2012. Three exploration wells are planned for the block prior to year-end 2012.
- In the Quifa North exploration block, the ANLA rejected a modification of the environmental license for a part of the northwestern portion of the block on June 4, 2012. The Company presented an appeal for reversal on June 25, 2012 and is waiting for a final response from the ANLA. This modification does not impact or affect the Company's ongoing development of the Quifa SW field or the new commercial development of the portion of Quifa North called Cajua, which was announced on August 16, 2012.
- In the Rubiales Field, on August 8, 2012, the ANLA granted authorization to expand the water injection capacity by 400 Mbbl/d, reaching a total water injection capacity of approximately 2 MMbbl/d for the field. This will allow the Company to increase total oil production in the field to a target level of 190 Mbbl/d by the end of this year. The Company also has additional water injection permits pending which will allow further production increases in 2013 and which it expects to receive by year-end 2012.
Ronald Pantin, Chief Executive Officer of the Company, commented: "These licensing processes correspond to the regular procedures that all oil & gas operators in Colombia must follow through with the ANLA, and they do not compromise the future plans and production projections of the Company whatsoever. We recognize the efforts the ANLA has made to enhance and streamline the process to speed up licenses for oil producers in Colombia and we look forward to working with them in the future."
These permits were discussed in a Bloomberg news article written by reporter Heather Walsh yesterday afternoon. Pacific Rubiales can confirm that it was not contacted by Bloomberg for comment or confirmation by the Company as to the accuracy of the contents of the subject article, prior to its publication. The Company regrets that, as a result of not being given the opportunity to comment on the article, Bloomberg gave the wrong and negative impression that various permit applications had been delayed or denied, the result of which was significant damage to the Company's market capitalization.
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, Piriri and Quifa oil fields in the Llanos Basin in association with Ecopetrol, S.A., the Colombian national oil company, and 100 percent of Pacific Stratus Energy Corp. which operates the La Creciente natural gas field. 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.
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 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, Guatemala 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 March 14, 2012 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 press release due to, among other factors, difficulties or interruptions encountered during the production of hydrocarbons.
|Bcf||Billion cubic feet.|
|Bcfe||Billion cubic feet of natural gas equivalent.|
|bbl||Barrel of oil.|
|bbl/d||Barrel of oil per day.|
|boe||Barrel of oil equivalent. Boe's may be misleading, particularly if used in isolation. The Colombian standard is a boe conversion ratio of 5.7 Mcf:1 bbl and is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.|
|boe/d||Barrel of oil equivalent per day.|
|Mboe||Thousand barrels of oil equivalent.|
|MMboe||Million barrels of oil equivalent.|
|Mcf||Thousand cubic feet.|
|WTI||West Texas Intermediate Crude Oil.|
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