Pacific Rubiales Announces Successful Additional Farmout Agreements

Monday, Sep 06, 2010

Pacific Rubiales Energy
Corp. (TSX: PRE; BVC: PREC) announced today that it has executed an
agreement with Petrodorado South America S.A. (a wholly-owned subsidiary of
Petrodorado Energy Ltd.) for the earn-in of an additional participating
interest in the Buganviles Block.

This new agreement is the result of negotiations regarding the drilling of
two new exploratory wells in the Buganviles Block and complements the
previous farm-out arrangement between the parties previously announced by
the Company on November 25, 2009. Under the new agreement, Petrodorado
Energy will earn an additional participating interest in the Visure and
Tuqueque Prospects by covering 100% of the Company's costs in exchange for a
29.5% and 25% additional participating interest, respectively (for a 49.5%
and 45% total participating interest, respectively). The farm-outs in this
block will result in an approximate reduction in the Company's exploratory
commitments of US$8.94 million for the next two wells. The Company has
retained operatorship of the block.

At the Visure Prospect, drilling of the Visure-1X exploration well is
expected to commence on September 13, 2010. The planned total depth of the
well is 3,600 feet and targets the Lower and Upper Guadalupe and the
Barzalosa formations.

At the Tuqueque Prospect, drilling of the Tuqueque-1X exploration well is
expected to start on September 29, 2010 subject to governmental
authorizations. The planned total depth of Tuqueque-1X is 8,500 feet and
targets the Tetuan and Caballos Cretaceous formations.

The farm-out process will allow the Company to continue concentrating its
investments on core assets without losing the potential upside from
promising exploration activities, while also divesting of some of the risk
of exploration.

Ronald Pantin, Chief Executive Officer, commented: "The additional farming
out of our Buganviles exploratory portfolio will permit the Company to focus
its investments on its producing assets and low risk exploration.
This process strengthens our ability to pursue the growth strategy which the
Company has envisioned for 2011 and beyond."

The assignment by the Company of the working interests is subject to
Colombian governmental and/or regulatory approvals.

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 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 as well as in other areas in
Colombia and northern Peru. Pacific Rubiales has a current net production of
approximately 60,000 barrels of oil equivalent per day, with working
interests in 35 blocks in Colombia and 3 blocks (135, 137 and 138) in Peru.

Source: Canada Wire