Pacific Rubiales announces agreement to invest $35 million to acquire control of CGX Energy

Pacific Rubiales announces agreement to invest $35 million to acquire control
                                of CGX Energy

PR Newswire

TORONTO, Feb. 27, 2013

TORONTO, Feb. 27, 2013 /PRNewswire/ - Pacific Rubiales Energy Corp. (TSX: PRE;
BVC: PREC; BOVESPA: PREB) announced today that it has entered into a binding
term sheet with CGX Energy Inc. (TSX-V - OYL), pursuant to which Pacific
Rubiales has agreed to invest Cdn$35,000,000 in CGX at a price of Cdn$0.14 per
unit for an aggregate of 250 million units. Each unit will consist of one
common share and one common share purchase warrant of CGX, with each warrant
being exercisable to acquire one CGX common share at an exercise price of
Cdn$0.20 per share for a period of five years following the date of issuance
of the units.

Ronald Pantin, Chief Executive Officer of  the Company, commented: "This is  a 
great opportunity for the Company to  expand and deepen its investment in  the 
highly prospective offshore Guyana oil  play. We consider CGX's large  acreage 
position in  Guyana to  be a  premier,  world class  exploration asset  in  an 
offshore basin with analogous  geology to West  Africa, Brazil and  Venezuela. 
This investment  is  well  aligned with  the  Company's  technical  strengths, 
strategy of early  stage large  resource capture  and objective  of being  the 
leading Latin American independent explorer and producer of hydrocarbons."

The private  placement is  subject to  approval of  the TSX  Venture  Exchange 
("TSXV") and other customary closing  conditions. CGX engaged GMP  Securities 
L.P. as its financial advisor for  the private placement, the net proceeds  of 
which will  enable  CGX  to  discharge its  immediate  obligations  under  its 
Georgetown PA Joint Operating Agreement and to continue to fund its other near
term obligations. Upon closing of the  investment, the board of directors  of 
CGX will  be reconstituted  to ensure  that a  majority of  the directors  are 
nominees of Pacific Rubiales.

The parties contemplate  closing the  private placement as  soon as  possible; 
however, not  later than  March 11,  2013 unless  otherwise agreed  to by  the 
Company, GMP and CGX.

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 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, Peru,  Guatemala, Brazil,  Papua New  Guinea or  Guyana; 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 press 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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