Pacific Rubiales announces 2012 year-end reserves: 27% growth in net 2P reserves and 407% reserve replacement

   Pacific Rubiales announces 2012 year-end reserves: 27% growth in net 2P
                    reserves and 407% reserve replacement

PR Newswire

TORONTO, March 4, 2013

TORONTO, March 4, 2013 /PRNewswire/ - Pacific Rubiales Energy Corp. (TSX: PRE;
BVC: PREC;  BOVESPA:  PREB) announced  today  the results  of  an  independent 
evaluation of the Company's reserves  in reports effective December 31,  2012, 
which show that the  Company's net 2P  reserves grew by  27% when compared  to 
December 31, 2011.

José Francisco Arata, President  of the Company commented:  "We look at  these 
reserves reports for 2012  as a clear demonstration  of the robustness of  our 
exploration and  development portfolio,  and the  Company's business  strategy 
that includes growth  through strategic  and accretive  acquisitions. The  27% 
reserves growth is a strong performance, driven by exploration discoveries and
a number of accretive acquisitions the  Company was able to accomplish  during 
the  year.  Pacific  Rubiales  continues  to  grow  its  reserves  along  with 
production, and the  addition of  reserves in new  areas clearly  demonstrates 
that the Company is diversifying its reserves base beyond the Rubiales field."

Highlights on net after royalty ("net") reserves from the independent  reserve 
evaluation reports include:

  *Total net proved plus probable ("2P") reserves additions of 145 MMboe,
    consisting of 95 MMboe from acquisitions, 40 MMboe from exploration
    activities and 10 MMboe from revisions.
  *Total net 2P reserves grew by 27% to 517 MMboe. Proved reserves ("1P")
    represent 65% of the total net 2P reserves.
  *407% reserve replacement with net 2P reserves additions of 4 boe per boe
    produced.
  *2P Reserve Life Index ("RLI") increased to 14 from a 2011 year-end RLI of
    13.
  *Total net 1P reserves grew by 6% to 337 MMboe. Approximately 77% of net 2P
    and 74% of 1P reserves are oil and natural gas liquids with the majority
    of these being heavy oil.
  *Continued diversification of the reserves base, with the Rubiales field
    now representing less than 19% of total net 2P reserves down from 29% a
    year ago.
  *Significant reserve additions from acquisitions, including first reserve
    bookings and production in Peru in the Block Z-1 shallow water offshore,
    and additional reserves and production from the PetroMagdalena Energy
    Corp. ("PetroMagdalena") and C&C Energia Ltd. ("C&C Energia")
    acquisitions, onshore Colombia.

        2012 2P Reserves Summary
                    
                   Oil Equivalent Net 2P
                     Reserves (MMboe)^2
December 31, 2011^1         407.3
Net Additions               145.4
Production^3               (35.7)
December 31, 2012           517.0

Notes:
^1 Statement of Reserves Data and Other Oil and Gas Information as of December
31, 2011, filed on SEDAR in Form 51-101 F1, on March 14, 2012.
^2 Boe is expressed herein using the Colombian conversion standard of 5.7 Mcf:
1 bbl required by the Colombian Ministry of Mines and Energy. A reconciliation
to the National Instrument  51-101 - Standards of  Disclosure for Oil and  Gas 
Activities ("NI 51-101") conversion  standard of 6 Mcf:  1 bbl is provided  in 
the "Advisories" section of this news release.
^3 Production represents the twelve month  period ended December 31, 2012  and 
includes production from the acquisition of  the 49% interest in Block Z-1  in 
Peru effective as of January 1, 2012.
Note: numbers in table may not add due to rounding differences.

2012 Year-end Reserves

The following  table  summarizes  information  contained  in  the  independent 
reserves reports  prepared by  RPS Energy  Canada Ltd.  ("RPS") and  Petrotech 
Engineering Ltd. ("Petrotech") with  an effective date  of December 31,  2012. 
RPS evaluated the reserves of the Company in the developed Rubiales and  Quifa 
SW heavy oil fields, while Petrotech  evaluated the reserves in the  remaining 
producing oil and  gas fields  in Colombia, the  natural gas  reserves of  the 
Piedra Redonda  in Block  Z-1 Peru,  and  other blocks  that have  active  and 
ongoing exploration programs. These reports  were prepared in accordance  with 
the definitions, standards and  procedures contained in  the Canadian Oil  and 
Gas Evaluation Handbook NI 51-101.

The reserves estimates for the Corvina  and Albacora oil fields in Block  Z-1, 
Peru were prepared  by Netherland  Sewell & Associates  Inc. (the  independent 
reserves auditor for BPZ Energy) with an effective date of December 31,  2012, 
in accordance with the US Security and Exchange Commission ("SEC") standards.
These reserves estimates will be updated  to conform with NI 51-101  standards 
in the Company´s Annual Information Form.

The  Company's  net  reserves  after  royalties  incorporate  all   applicable 
royalties under Colombia and Peru fiscal legislation based on forecast pricing
and production rates, including any additional participation interest  ("PAP") 
related to the  price of  oil applicable to  certain Colombian  blocks, as  at 
year-end 2012. Net  reserves for  the Quifa  block were  calculated using  the 
share formula  of  the  Agencia  Nacional de  Hidrocarburos,  as  agreed  with 
Ecopetrol S.A.,  until the  arbitration process  pertaining to  this block  is 
settled.

The recovery and  reserves estimates  of crude  oil and  natural gas  reserves 
provided in these reports are estimates  only, and there is no guarantee  that 
the estimated reserves  will be recovered.  Actual crude oil  and natural  gas 
reserves may eventually be greater than  or less than the estimates  provided. 
All reserves presented  are based on  RPS and Petrotech  forecast pricing  and 
costs effective December 31, 2012, and Netherland and Sewell & Associates 2012
un-weighted arithmetic average  of the  first-day-of the-month  price for  the 
period January 2012 through December 2012.

All additional  reserves  information as  required  under NI  51-101  will  be 
included in the  Company's Annual  Information Form  which is  expected to  be 
filed on SEDAR by March 13, 2013.

The Company also plans to release its 2012 year-end certified resource  report 
next month, prepared by Petrotech.

                                                                    
                         Reserves at December 31, 2012 (MMboe^1)
                                                               Proved Plus     Hydrocarbon
Country  Field        Total Proved (1P)    Probable (P2)      Probable (2P)    Type
                       100%  Gross  Net  100%  Gross  Net   100%   Gross  Net       
         Rubiales      277.1 117.0  93.6   6.2   2.8   2.2   283.3 119.8  95.8 Heavy Oil
         Quifa SW      115.4  69.2  58.0  29.7  17.8  15.1   145.1  87.0  73.1 Heavy Oil
         Cajua          64.8  38.9  32.9  51.3  30.8  24.4   116.0  69.6  57.3 Heavy Oil
         Quifa North    11.3   6.8   6.0  36.3  21.8  18.1    47.6  28.6  24.1 Heavy Oil
         CPE-6             -     -     - 114.2  57.1  44.5   114.2  57.1  44.5 Heavy Oil
         Sabanero^2     20.0  10.0   9.0     -     -     -    20.0  10.0   9.0 Heavy Oil
         La Creciente   79.1  79.1  73.6     -     -     -    79.1  79.1  73.6 Natural Gas
                                                                               Natural Gas
         Guama                                                                 &
Colombia                16.2  16.2  15.2  20.3  20.3  19.0    36.5  36.5  34.2 Condensate
         Other Minor                                                           Oil &
         Blocks                                                                Associated
                         7.1   3.0   2.7   2.5   1.5   1.2     9.6   4.5   3.9 Natural Gas
         PMD Blocks                                                            Light &
                        19.3  10.9  10.1  12.2   7.1   6.6    31.5  18.1  16.6 Medium Oil
         C&C Blocks                                                            Light &
                        18.0  18.0  15.1   2.0   2.0   1.8    20.0  20.0  16.9 Medium Oil
         Sub-total                                                             Oil &
                       628.4 369.2 316.2 274.4 161.1 132.9   902.9 530.2 449.1 Natural Gas
                                                                               Light &
Peru                                                                           Medium Oil,
         Block Z-1      42.1  20.6  20.4  99.5  48.7  47.5   141.5  69.4  67.9 Natural Gas
         Total at
        Dec. 31,                                                             Oil &
         2012          670.5 389.8 336.6 373.9 209.8 180.4 1,044.4 599.6 517.0 Natural Gas
         Total at
        Dec. 31,
         2011          686.6 383.9 318.8 206.5 110.1  88.5   893.2 493.9 407.3 
        Difference   (16.2)   5.9  17.8 167.4  99.8  91.9   151.2 105.6 109.6 
                2012                       Total Reserves
         Production^3   90.2  43.4  35.7      Incorporated   241.5 149.0 145.4 
        Notes:
         ^1The term ''boe'' is expressed herein using the Colombian conversion standard of
         5.7 Mcf: 1 bbl required by the Colombian Ministry of Mines and Energy. A
        reconciliation to the National Instument 51-101 - Standards of Disclosure for Oil
         and Gas Activity ("NI 51-101") conversion standard of 6 Mcf: 1 bbl is provided in
         the "Advisories" section of this news release.
        ^2The Company indirectly owns 49.999% of Maurel & Prom Colombia B.V., which owns
         the Sabanero block.
        ^3Includes production attributed from the acquisition of the 49% interest in
         Block Z-1, Peru effective as of January 1, 2012.
         In the table above, 100% refers to total 100% field interest; Gross refers to WI
        before royalties; Net refers to WI after royalties; Numbers in table may not add
         due to rounding differences.

Discussion of Reserves

Approximately 94% of the Company's net 1P and 88% of 2P year-end 2012 reserves
are in Colombia, with the remainder in Peru. Over 50% of the 145 MMboe of net
2P 2012 reserve additions came from Colombia.

The Company's exploration capital expenditure in 2012 was approximately US$355
million, drilling 55 gross (33 net) exploration wells (including appraisal and
stratigraphic wells),  resulting in  44 gross  successful wells  (80%  success 
rate) and adding  40 MMboe of  net 2P reserves  through the drill  bit, for  a 
finding cost of  approximately US$8.90/boe.  The Company's  five year  finding 
cost  (2008  -  2012)  is  estimated  at  US$3.44/boe.  The  Company  operates 
approximately 98% of its  production and was responsible  for the majority  of 
Colombia's production growth during 2012.

Colombia

In the Company's Rubiales field, net 2P reserves declined to 96 MMbbl from 118
MMbbl a year ago on production  of approximately 22 MMbbl. The Rubiales  field 
is a mature oil  field that will  see plateau production  in the next  several 
years before natural decline starts in 2015. The Rubiales field, which in 2008
accounted for 60%  of the Company's  2P reserves base,  now accounts for  less 
than 19% of a substantially larger total reserves base.

In the Quifa SW field, net 2P reserves  grew to 73 MMbbl from 65 MMbbl a  year 
ago from successful infill drilling and extensions. Total net proved reserves
grew to 58 MMbbl from 56 MMbbl a  year ago due to reserves movements from  the 
probable category. Net production during 2012 was approximately 8 MMbbl.

In the area known as Quifa North, the Company declared a new commercial  field 
area named Cajua in mid-August 2012. The Cajua field area is currently  under 
development and its production is expected to increase over the next years  to 
a targeted plateau  of 15  to 20  Mbbl/d. The  remainder of  the Quifa  North 
block, is in an active exploration stage which is expected to continue for the
next several years. Total net 2P  reserves in Quifa North (including the  new 
Cajua field) remained largely flat  at 81 MMbbl compared  to a year ago.  Net 
production in 2012 was approximately 0.2 MMbbl, all of which is attributed  to 
Cajua.

On the  Sabanero block,  where the  Company  has a  49.999% interest,  net  2P 
reserves declined  to 9  MMbbl from  15 MMbbl  a year  ago, due  to  technical 
revisions  of  probable  reserves  based  on  a  change  in  future   economic 
assumptions associated with the field's  operations. At the same time,  total 
proved reserves increased  to 9  MMbbl from  5 MMbbl a  year ago,  due to  new 
drilling and extensions and movements from the probable category. The Company
and its  partner  Maurel  et  Prom  Colombia  B.V.  are  actively  looking  at 
facilities  and  equipment  investments  which  could  improve  the  operating 
economics of the Sabanero block. Net production during 2012 was approximately
0.2 MMbbl.

On the CPE-6 E&P block some 70 km southwest of Rubiales/Quifa, net 2P reserves
remain unchanged at the 2011 year-end bookings  of 45 MMbbl, due to delays  in 
permitting. The Company has a working interest  of 50% and is operator of  the 
block. These reserves resulted from the evaluation of the wells drilled in the
northern portion of the block only and are expected to increase  significantly 
in the near future  through exploration and development  drilling. As soon  as 
the environmental permit for the block  is awarded, the Company will start  an 
exploration and  appraisal drilling  campaign to  confirm reservoir  potential 
which it believes will lead to a declaration of commerciality for the northern
portion of the block.

In the La Creciente  block in the Lower  Magdalena basin (northern  Colombia), 
net 2P  reserves declined  to 419  Bcf from  441 Bcf  a year  ago due  to  net 
production of approximately 22 Bcf (4 MMboe) during 2012. All the reserves at
La Creciente are comprised of natural gas.

On the Company's 100%  working interest and  operated Guama exploration  block 
just to the east of  La Creciente, 33 MMboe of  net 2P reserves were added,  a 
result of a number of  significant condensate rich gas discoveries,  including 
the Pedernalito-1X and Cotorra-1X exploration discoveries announced in  2012. 
Approximately 61% of the 2P and 68% of the 1P reserves in the Guama block  are 
natural  gas.  In  February  2013,   the  Company  announced  an   additional 
exploration discovery in the Manamo-1X exploration well, and will be  drilling 
a second exploration well this year and initiating a program of extended  flow 
testing of  wells, to  determine productivity  and resource  potential in  the 
block, which is expected to lead to future commercial development.

On other non-core minor producing blocks in Colombia, net 2P reserves declined
to 4  MMboe  from 6  MMboe  a  year ago  due  to natural  declines  and  small 
revisions.  Net  production   from  these  producing   blocks  in  2012   was 
approximately 0.5  MMboe. Approximately  20% of  the  2P and  25% of  the  1P 
reserves in these non-core minor producing blocks are natural gas.

The Company added  34 MMboe net  2P reserves  as a result  of two  significant 
corporate  acquisitions   in  Colombia   during   2012,  consisting   of   the 
PetroMagdalena acquisition  which  closed on  July  27, and  the  C&C  Energia 
acquisition which closed at year-end.  The majority of the acquired  reserves 
are medium and light oil. Net production during 2012 from these  acquisitions 
was approximately 0.7 MMbbl, all of which is attributed to the  PetroMagdalena 
producing properties.

Peru

In Peru, the  Company acquired  a 49%  participating interest  in the  shallow 
water offshore  Block Z-1.  The deal  closed  in late  December 2012  and  is 
effective to January 1, 2012. In 2012,  the Company added 68 MMboe of net  2P 
reserves from Block Z-1, consisting of  43 MMbbl oil in the producing  Corvina 
and Albacora fields,  and 148 Bcf  (25 MMboe) natural  gas in the  undeveloped 
Piedra Redonda field. Approximately 37% of the 2P oil reserves and 19% of the
natural gas reserves in Block Z-1 are in the 1P category. The Company and its
partner will be engaged in an active development drilling program on the block
over the next two years which is expected to significantly grow oil production
and result  in movements  in  reserves from  probable and  proved  undeveloped 
("PUD") categories to proved developed producing. Net production during  2012 
attributed to  the  Company's 49%  participating  interest in  Block  Z-1  was 
approximately 0.6 MMbbl.

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, 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 
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.

Reserves Replacement

Production  replacement  is  calculated  by  dividing  reserves  additions  by 
production in the same period. Reserves additions over a given period, in this
case 2012, are  calculated by summing  one or more  of revisions and  improved 
recovery, extensions and discoveries,  acquisitions and divestitures.  Reserve 
replacement cost is calculated by dividing total capital invested in  finding, 
development and acquisitions net of  divestitures by reserve additions in  the 
same period.

Finding Costs

The aggregate of the finding costs incurred in the most recent financial  year 
and the change during  that year in estimated  future finding costs  generally 
will not reflect total  finding costs related to  reserves additions for  that 
year.

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.

Boe Conversion

The term  "boe"  is  used  in  this news  release.  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.

All of the Company's natural gas  reserves are contained in the La  Creciente, 
Guama and other bocks in Colombia as  well as in the Piedera Redonda field  in 
Block Z-1, Peru. For  all natural gas reserves  in Colombia, boe's have  been 
expressed using the Colombian conversion standard of 5.7 Mcf: 1 bbl  required 
by the Colombian Ministry of Mines  and Energy. For all natural gas  reserves 
in Peru, boe's have been expressed  using the Canadian conversion standard  of 
6.0 Mcf: 1 bbl. If a conversion standard  of 6.0 Mcf: 1 bbl was used for  all 
of the Company's natural gas reserves, this would result in a reduction in the
Company's  net  1P  and  2P   reserves  of  approximately  4.2  and   4.7MMboe 
respectively.

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.

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
 
Press spacebar to pause and continue. Press esc to stop.