Pacific Rubiales confirms oil discovery on the Karoon blocks, offshore Brazil

Pacific Rubiales confirms oil discovery on the Karoon blocks, offshore Brazil

PR Newswire

TORONTO, Jan. 24, 2013

TORONTO, Jan. 24, 2013 /PRNewswire/ - Pacific Rubiales Energy Corp. (TSX:PRE;
BVC: PREC; BOVESPA: PREB) confirmed today the discovery of light oil at the
Kangaroo-1 exploration well drilling on block S-M-1101, in the Santos basin,
offshore Brazil. The well was drilled as part of an agreement announced by
the Company on September 18, 2012, as a minimum work commitment for both the
S-M-1101 and S-M-1165 blocks, where the Company holds a 35% participating
interest (subject to approval by Brazil's Agência Nacional do Petróleo, Gás
Natural e Biocombustíveis (ANP)).

As announced by the  operator of the blocks,  Karoon Gas Australia Ltd.  (ASX: 
KAR), (see Karoon website:, the Kangaroo-1 well has been
drilled to a depth of 3,049 meters and the presence of a light oil column  has 
been confirmed  by mudlog,  wireline petrophysical  and MDT  pressure data  in 
Eocene aged rocks. A gross column of 25 meters and an oil / water contact  is 
established from pressure data interpretation.

The well intersected the Eocene reservoir section 300 metres down dip from the
trap crest as  interpreted on seismic  mapping by Karoon.  A potential  gross 
hydrocarbon column of approximately 350 metres is estimated by Karoon for  the 
entire trip.

As this was not the  primary target at the  Kangaroo-1 well, the discovery  of 
oil in  the  Eocene  reservoir  at the  Kangaroo-1  well  provides  additional 
information with  respect  to  other potential  prospects  within  the  Karoon 
blocks. Also, the well exhibited  good oil shows at  the base of the  Miocene 
aged carbonate  layers, but  these  are still  under  a detail  evaluation  to 
determine their potential.

A wireline program  is currently underway  with full results  expected in  the 
coming days. A drill stem test program will be assessed on completion of  the 
wireline evaluation. The full evaluation program for the well is expected  to 
continue through February.  Pacific Rubiales expects  to issue an  additional 
news release  providing  further technical  details  relating to  these  drill 

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,


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 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 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 


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.


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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