Pacific Rubiales 2013 outlook and guidance: Targeting 15 to 30% production growth, E&D capital spending of $1.7 billion, and a

  Pacific Rubiales 2013 outlook and guidance: Targeting 15 to 30% production
 growth, E&D capital spending of $1.7 billion, and a significant high impact
                             exploration program

PR Newswire

TORONTO, Jan. 8, 2013

TORONTO, Jan. 8, 2013 /PRNewswire/ - Pacific Rubiales Energy Corp. (TSX:  PRE; 
BVC: PREC;  BOVESPA: PREB)  announced  today its  capital spending  plans  for 
2013. The Company plans  to spend $1.7 billion  this year in exploration  and 
development (E&D) expenditures, an increase over spending in 2012,  reflecting 
a larger  exploration  budget  and increased  development  drilling.  Pacific 
Rubiales expects to  release its year-end  2012 audited results  on March  13, 
2013. All values in this release are in U.S.$ unless otherwise stated.

The Company is targeting 15 to 30% growth in average daily production for 2013
and has scheduled a conference call at 8:00 a.m. ET (Toronto and Bogotá  time) 
/ 11:00 a.m. (Rio de Janeiro time) on Wednesday January 9, 2013 to discuss its
2013 Outlook and Guidance. Analysts  and interested investors are invited  to 
participate using the dial-in instructions available  at the end of this  news 
release.

"Our plans for 2013 are shaped  by our expanded exploration portfolio and  oil 
focused production that continues to grow and enjoy strong netbacks and robust
economics," said Ronald Pantin, Chief  Executive Officer of Pacific  Rubiales. 
"During 2012, we transitioned the Company's portfolio through select strategic
acquisitions, to setup and secure  long-term growth through early stage  large 
resource capture,  and  by  adding  value to  the  existing  business  through 
accretive reserves  and  production  development  and  acquisitions.  Although 
Colombia remains the Company's  core producing area and  the focus of most  of 
its activities and expenditures in 2013,  we are taking our first major  steps 
outside its borders, with a significant  high impact well program planned  for 
Peru, Guatemala, Brazil and Papua New Guinea.

"The Company  estimates that  it  will achieve  average production  net  after 
royalties of approximately 99 Mboe/d in 2012 (including volumes attributed  to 
the Company's acquisition of Block Z-1 in Peru). Despite being at the low end
of our guidance range,  this was a very  strong performance given the  largely 
flat production  through  the  first  eight  months  of  the  year  caused  by 
unexpected permit  delays  in  Colombia.  Exit  production  in  2012  was  an 
estimated 293 Mboe/d  total gross  field (average  last week  in December)  or 
approximately 117 Mboe/d  net after  royalty (excluding volumes  from the  C&C 
Energia Ltd. acquisition which  closed on December 31,  2012), an increase  of 
approximately 17% from 2011's exit production and exceeding our targets of 280
to 285 Mboe/d gross total field (112 to 114 Mboe/d net after royalty).

"It is  likely that  2013 production  growth for  Pacific Rubiales  and  other 
companies  in  Colombia  will  continue  to   be  affected  by  the  pace   of 
environmental permitting approval. However, in  an attempt to take a  prudent 
and realistic  view on  this  issue over  which we  have  no control,  we  are 
starting the year by targeting 15 to 30% overall average production growth  in 
2013. The Company has a  stronger than expected beginning  to 2013 as we  are 
currently producing above Plan at  approximately 310 Mboe/d gross total  field 
or 129  Mboe/d net  after royalty  (including the  acquired C&C  Energia  Ltd. 
volumes), and  we  expect  to  be  able  to  update  the  range  as  the  year 
progresses.

"Production at  the Company's  landmark Rubiales  and Quifa  heavy oil  fields 
(including the Cajua new commercial field area in Quifa North) is expected  to 
continue to grow. First oil production  is expected from Block CPE-6,  during 
the second  half of  the  year, after  receipt  of the  blanket  environmental 
permit. The Block  Z-1 asset and  the blocks acquired  from C&C Energia  Ltd. 
which both closed  at year-end  2012, are expected  to contribute  significant 
light oil production volumes in 2013.

"Our oil price realizations  and operating netbacks  strengthened in 2012  and 
the Company expects  to achieve  an operating  netback on  its oil  production 
exceeding $65/bbl on average  WTI prices of  approximately $94, generating  an 
estimated EBITDA  of $2.1  billion in  2012. In  2013 we  expect to  generate 
EBITDA in the  range of  $2.5 to  $2.8 billion in  an expected  WTI oil  price 
environment of $85 to $90.

"In summary, Pacific Rubiales enters 2013  on a very solid financial standing,
our Balance Sheet remains strong and our growth targets in the medium term are
underpinned by our extensive  low cost and high  return heavy oil  exploration 
and development assets in Colombia. We have stepped beyond Colombia, building
first production  in  Peru  and  layering  in  future  longer-term  production 
potential through the exploration  bit. I am looking  forward to an  exciting 
year in 2013  as we continue  our strategy of  repeatable, profitable  growth, 
building for the long-term  future, the leading E&P  company focused in  Latin 
America."

Highlights of the 2013 capital program include:

In 2013, we expect to have total E&D capital expenditures of $1.7 billion,  an 
increase of approximately 30% over estimated 2012 expenditures, largely driven
by  the  expanded  exploration  activities  outside  Colombia  and   increased 
development drilling in Colombia and Peru. The capital program is expected to
be funded by  internally generated  cash flow, in  an expected  WTI oil  price 
environment of $85 to $90, and consists of the following major expenditures:

  *$495 million in exploration, a significant increase over 2012 reflecting a
    larger number of planned wells in frontier and offshore basins outside of
    Colombia. The Company plans to drill approximately 35 gross exploration
    wells (including appraisal and stratigraphic wells) and acquire 4,682 km
    and 1,040 km^2 of 2D and 3D seismic data respectively. The planned well
    program includes 15 wells in blocks along the Company's core heavy oil
    belt in the southern Llanos basin, Colombia. In total, approximately 19
    wells are targeting high impact prospects, including the Company's first
    exploration wells in Peru, Brazil, Guatemala and Papua New Guinea. A
    table of planned gross and net exploration wells is available at the end
    of this news release.
  *$520 million in development drilling with a total of 283 gross wells
    planned (excluding work-overs and water injector wells),  and with
    activity driven by development of the Cajua field (new commercial field
    area in Quifa North), continued on-going infill drilling in the Quifa SW
    and Rubiales fields, stepped up light oil development in the Cubiro block
    in Colombia, and a significant program of development drilling on Block
    Z-1 in Peru. A table of planned gross and net development wells is
    available at the end of this news release.
  *$555 million in facilities and infrastructure, with approximately 85%
    directed to the Company's core producing Rubiales, Quifa SW, Cajua and
    Sabanero^1 heavy oil fields, and the remainder for the planned development
    of the CPE-6 block, as well as other mostly light oil field developments
    in Colombia.

^1The Company holds a 49.999% participation  in Maurel et Prom Colombia  B.V., 
which indirectly owns a 49.999% working interest in the Sabanero block.

Colombia

Colombia will remain  the predominant  focus of the  Company's activities  and 
capital  expenditures  in  2013  with  $1.2  billion  in  total  E&D   capital 
allocation, including exploration,  development and facilities  expenditures. 
Of that amount,  $300 million will  be directed  to the drilling  of 31  gross 
exploration wells, seismic and other  G&G expenditures. Exploration wells  of 
particular interest include  high impact  wells on the  La Creciente,  SSJN-7, 
Cordillera-15, Muisca, CPE-6 and Tacacho blocks.

Development drilling expenditures will account for another $390 million, which
will be directed to the drilling of 274 gross wells: about 125 planned for the
Rubiales field,  80  at Quifa  SW,  45 at  Cajua,  and the  remainder  on  the 
Company's light oil blocks.

All of the $555  million of planned  facility and infrastructure  expenditures 
will be  spent in  Colombia,  roughly level  with facilities  expenditures  in 
2012. The majority  of the  expenditures will  be directed  to the  Company's 
heavy oil producing  Rubiales, Quifa,  and Cajua  fields including  flowlines, 
power grid  distribution,  oil  dehydration  and  water  treatment  facilities 
required to handle increasing  volumes of water  production in these  fields. 
Funds will also be directed to  early development facilities at CPE-6 and  the 
Company's light oil  fields. The Company  operates the vast  majority of  its 
Colombia blocks and activities.

Peru

Capital expenditures in Peru is expected to range between $190 million to $200
million in  2013,  with approximately  70%  of this  directed  to  development 
activities on Block Z-1, including  the drilling of eight development  wells. 
There will also  be planned  exploration expenditures  of between  $60 to  $70 
million directed to the drilling  of the first well  in the high impact  Block 
138 during the first  quarter 2013, along with  seismic acquisition and  other 
G&G expenditures on blocks  135, 137, 116 and  the exploration areas of  Block 
Z-1, through the year.

Brazil

Capital expenditure in Brazil is expected to range between $85 to $90  million 
in 2013, all directed to the drilling of two high impact exploration wells  on 
the Karoon offshore Santos Basin, expected during the first half of the year.

Other

Capital expenditures of between $15 million to $20 million are expected on the
Company's blocks in Guatemala in 2013, including expenditures directed to  the 
drilling of one exploration well plus seismic and other G&G activities.

Additional capital  spending  of  between  $30  million  to  $35  million  are 
associated with the Company's participation in exploration activities in Papua
New Guinea, including its share of the costs of drilling two planned appraisal
wells on the Triceratops structure.

                   2013 Exploration Well Plan Schedule
    Country             Block        PRE WI % Number of Wells 1Q 2Q 3Q 4Q
                                               Gross    Net
                     Quifa North       60%       6      3.6   1  1  2  2
                    Sabanero^(1)       50%       1      0.5   1      
                      CPE-6 E&P        50%       6      3.0     1  2  3
                       CPO-12          40%       1      0.4         1
                       CPO-17          25%       1      0.3   1      
                    Portofino^(2)      40%       3      1.2   3      
                        Guama          100%      1      1.0       1  
    Colombia          SSJN - 7         50%       1      0.5     1    
                     COR-15^(1)        50%       2      1.0   1    1  
                     Muisca^(1)        50%       1      0.5     1    
                      Topoyaco         100%      1      1.0     1    
                       Tacacho         51%       1      0.5         1
                      Cubiro C         58%       1      0.6   1      
                      Santacruz        71%       1      0.7   1      
                      Arrendajo        68%       2      1.4   2      
      Peru               138           100%      1      1.0   1      
   Guatemala           O-96-4          55%       1      0.6   1      
     Brazil      S-M-1101 & S-M-1165   35%       1      0.4   1      
                 S-M-1102 & S-M-1137   35%       1      0.4     1    
Papua New Guinea     Triceratops       10%       2      0.2       1  1
     Total                                     35     18.6  14 6  7  8

(1)The Company holds a 49.999% participation in Maurel et Prom Colombia B.V.
which holds 100% of the Sabanero and Cor-15 blocks and 50% of the CPO-17 and
SSJN-9 blocks
(2)The Company holds a 40% participating interest in the Portofino block owned
by Canacol Energy Inc.

            2013 Development Well Plan^(1)
Country         Field         PRE WI % Number of Wells
                                        Gross    Net
               Rubiales         45%      122    54.9
Colombia       Quifa SW         60%      80     48.0
                Cajua           60%      45     27.0
         Light Oil Fields^(2)   78%      28     21.8
  Peru    Corvina / Albacora    49%       8      3.9
 Total                                 283    155.6

(1)Excludes existing well bore work-overs and drilling of injector wells
(2)Development wells on various light oil blocks (including: Abanico, Cubiro,
Carbonera, Cravoviejo, Cachicamo, Llanos 19)

Exploration Update

During December 2012, the Company focused  its exploration activity in the  in 
the eastern Llanos and Lower Magdalena  basins in Colombia, and in the  Santos 
basin, offshore Brazil. Four exploration wells were drilled, one each in  the 
Sabanero and SSJN-9 blocks, and two on  the CPO-12 block. Also in the  month 
of December, four exploration wells started  drilling, one each on the  CPO-1, 
CPO-12 and Guama blocks in Colombia and on the Karoon blocks in Brazil, all of
which are expected to reach final depth and their operations during January or
February 2013.

The Chaman-1 exploration well in the northeastern part of the Sabanero  Block, 
resulted in a new oil discovery and is currently under production test.

In the SSJN-9 block,  located in the Lower  Magdalena Valley basin, Maurel  et 
Prom Colombia, the operator of the  block, drilled the Santa Fe-1  exploration 
well. The well was dry and it was plugged and abandoned.

In the  CPO-12  block, two  exploration  wells  were drilled  as  partof  the 
exploration commitments with the ANH: The Espiguero-1X well was drilled in the
southeastern border of  the block,  encountered two feet  of net  pay and  the 
wellbore was plugged and abandoned  as uneconomic. The Escarabajo-1X well  was 
drilled in the northwestern border of  the block. The well showed  hydrocarbon 
traces in the interval  of interest but the  petrophysical evaluation did  not 
show any commercial  discovery, and the  well was plugged  and abandoned.  The 
third commitment  well, the  Hayuelo-1X exploration  well is  currently  being 
drilled, targeting the basal sands of the Carbonera Formation, and is expected
to reach final depth during the second week of January.

In the CPO-1 block,  the Altillo Oeste-1 exploration  well is currently  being 
drilled,  targeting  sands  in  the  Eocene  Mirador  Formation  as  its  main 
exploration objective.

In the Guama block, the Manamo-1X exploration well started drilling during the
second week of December and it is expected to reach final depth during January
2013.

The Kangaroo-1  exploration  well  within  blocks  S-M-1101  and  S-M-1165  in 
offshore Brazil commenced drilling at the end of December 2012. The well  has 
multiple targets in  the late Cretaceous,  Eocene and Miocene  rocks, and  its 
drilling operations are expected to continue into February 2013.

2013 Outlook and Guidance Conference Call

The Company has  scheduled a  conference call  for investors  and analysts  on 
Wednesday January 9, at 8:00 a.m. (Toronto and Bogotá time) / 11:00 a.m.  (Rio 
de Janeiro time), to discuss the Company's 2013 Outlook and Guidance. Analysts
and interested investors are invited to participate using the dial-in  numbers 
as follows  (a  presentation will  be  posted  on the  Company's  website  at: 
www.pacificrubiales.com prior to the call):

Participant Number (International/Local): (647) 427-7450
Participant Number (Toll free Colombia): 01-800-518-0661
Participant Number (Toll free North America): (888) 231-8191
Conference ID (English Participants): 82827621
Conference ID (Spanish Participants): 82848382

The conference  call  will  be  webcast which  can  be  accessed  through  the 
following                                                                link: 
http://www.pacificrubiales.com.co/investor-relations/webcast.html.

A replay of the call will be available until 23:59 pm (Toronto time),  January 
23, 2013, which can be accessed as follows:

Encore Toll Free Dial-in Number:1-855-859-2056
Local Dial-in-Number:(416) 849-0833
Encore ID (English Participants): 82827621
Encore ID (Spanish Participants):82848382

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.

Advisories

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.

Boe Conversion

Boe may be  misleading, particularly if  used in isolation.  A boe  conversion 
ratio of 5.7 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.  The  estimated values  disclosed in  this  news 
release do not  represent fair  market value.  The estimates  of reserves  and 
future net  revenue  for  individual  properties  may  not  reflect  the  same 
confidence level  as estimates  of reserves  and future  net revenue  for  all 
properties, due to the effects of aggregation.

Translation

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.

Definitions

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.
Mbbl  Thousand barrels.
Mboe  Thousand barrels of oil equivalent.
MMbbl Million barrels.
MMboe Million barrels of oil equivalent.
Mcf   Thousand cubic feet.
WTI   West Texas Intermediate Crude Oil.











SOURCE Pacific Rubiales Energy Corp.

Contact:

Christopher (Chris) LeGallais
Sr. Vice President, Investor Relations
+1 (647) 295-3700

Roberto Puente
Sr. Manager, Investor Relations
+57 (1) 511-2298

Javier Rodriguez
Manager, Investor Relations
+57 (1) 511-2319
 
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