Pacific Rubiales delivers record production, sales volumes, EBITDA and funds
flow from operations, in the first quarter
TORONTO, May 8, 2013
TORONTO, May 8, 2013 /PRNewswire/ - Pacific Rubiales Energy Corp. (TSX:PRE;
BVC: PREC; BOVESPA: PREB) announced today the release of its unaudited
consolidated financial results for the quarter ended March 31, 2013, together
with its Management Discussion and Analysis ("MD&A"). These documents will be
posted on the Company's website at www.pacificrubiales.com, SEDAR at
www.sedar.com, the SIMEV website at
www.superfinanciera.gov.co/web_valores/Simev, and the BOVESPA website at
www.bmfbovespa.com.br/. All values in this release and the Company's financial
disclosures are in U.S.$, unless otherwise stated.
The Company scheduled a teleconference for investors and analysts on Thursday,
May 9, 2013 at 9:00 a.m. (Toronto time) to discuss the Company's first quarter
results. Analysts and interested investors are invited to participate using
the dial-in instructions provided at the back of this news release.
First Quarter 2013 Overview and Highlights
*Average net production after royalties was 127,889 boe/d, an 18% increase
compared to the fourth quarter last year, and an increase of 37% over the
same period in 2012. This represents a record for the Company and is at
the high end of the annual production guidance.
*Revenues were $1.3 billion, a 20% increase compared to the fourth quarter
last year, and a 35% increase over the same period in 2012.
*EBITDA was $695 million, a 62% increase compared to the fourth quarter
last year, and a 28% increase over the same period in 2012. Also a record
quarter for the Company, driven by higher volumes of production and sales,
and supported by high price realizations.
*Funds flow from operations (cash flow) was $506 million, a 119% increase
compared to the fourth quarter in 2012, and an increase of 29% over the
same period in 2012, which was a record quarter for the Company.
*Net earnings were $121 million, a substantial increase of $145 million
compared to the loss of $24 million in the fourth quarter last year. Net
earnings in the quarter were down from $258 million in the same period in
2012. Contributing to this decrease was an increase in non-cash DD&A
costs resulting from the higher volumes produced, the C&C and
PetroMagdalena acquisitions completed in 2012, and the continued capex
additions to the Rubiales field related to the 2016 contract life of the
field. Also contributing to this decrease was an increase in total income
taxes, primarily resulting from non-cash foreign exchange effects on
deferred income taxes.
*Operating netbacks on combined crude oil and natural gas production of
$60.88/boe were 31% higher than the $46.44/boe recorded in the fourth
quarter, largely relating to the PAP arbitration decision at Quifa SW.
Operating netbacks in the quarter were down from the same period in 2012,
largely a result of lower commodity prices and slightly higher costs.
*The Company achieved a $4.17/bbl reduction on its oil operating costs in
the first quarter compared to the fourth quarter last year, excluding the
overlift/underlift costs which were due to the financial provision
relating to the PAP arbitration decision at Quifa SW. The Company
continues to implement cost reduction projects and initiatives which are
expected to result in a structural reduction in its future operating costs
by approximately $8/boe on a pro-forma basis through 2013.
*Issuance of $1 billion of senior unsecured notes at a rate of 5.125%
maturing in 2023. The proceeds of the financing are being used to repay
outstanding short-term debt, release the revolving credit facility, while
extending the Company's credit profile and strengthening its overall
*A 55% growth in total certified Prospective Resources to 4.3 Bboe from 2.8
Bboe in 2011. Total Contingent Resources also grew to 168 MMboe from 4
MMboe in 2011.
*Important exploration discoveries, including two new light oil discoveries
in the Company's Cubiro and Arrendajo blocks in Colombia, a significant
natural gas and condensate discovery in the Guama block also in Colombia,
and a light oil discovery in the Kangaroo-1 exploration well drilled in
the Santos Basin offshore Brazil.
*The Company received an important environmental permit for the "Quifa
Hydrocarbon Exploitation Area", allowing for further production ramp-up in
the Quifa SW field and resumption in exploration drilling in the Quifa
*In April, 2013, the Company filed a Notice of Intention with the Toronto
Stock Exchange (the "TSX") to commence a normal course issuer bid to
purchase up to a maximum of 31,075,887 common shares, which represents 10%
of the public float of the Company as of April 26, 2013. Given the
strength of the Company's balance sheet, the Company is currently
evaluating methods by which to return value to shareholders, which
includes repurchasing shares and/or increasing the quarterly dividend.
Senior management is in the process of evaluating these alternatives and
will submit a proposal to the board of directors by the end of the second
"I am very pleased by the Company's strong operational and financial
performance year-to-date", commented Ronald Pantin, Chief Executive Officer of
the Company. "Production and sales volumes are at record levels and on track
to achieve the high end of our annual production guidance. The Company's
financial performance metrics measured by cash generated as EBITDA and funds
flow from operations (cash flow) continue to be robust and are growing. The
Company's balance sheet is strong and we continue to benefit from the market
and trading advantages currently enjoyed by Colombia heavy oil production,
achieving a premium to WTI pricing in the first quarter of almost $8/bbl on
our total crude oil production sales volumes.
"We have an active and exciting year of exploration and development planned,
with over 40 exploration and appraisal wells planned for the year, and with
over a third of these wells being potential high impact wells in Colombia,
Peru, Guatemala, Brazil and Papua New Guinea. Five new exploration
discoveries were made during the first quarter including an oil discovery in
the Kangaroo-1 exploration well in offshore Brazil. In April, we spudded our
first onshore exploration well (Yahuish-1X well) in Block 138 in Peru,
targeting a large structure identified on seismic.
"Environmental permitting in Colombia is slower than anticipated but I am
pleased to see some improvements developing on that front and we appreciate
the efforts that the Autoridad Nacional de Licencias Ambientales ("ANLA") has
made to enhance and streamline the process to speed up licenses for oil
producers in Colombia. During the first quarter, we received an important
comprehensive permit for the further exploration and development of the Quifa
Hydrocarbon Exploitation Area that will allow continued production ramp-up in
the Quifa SW field and resumption of exploration in the Quifa East area north
of the Rubiales field. We also received the necessary permits to increase oil
production in our Copa oil field Block.
¨The Company is in the process of implementing several cost saving initiatives
with respect to production, transportation and diluent costs, which we expect
to materialize throughout the year.
"The Company is building a new power transmission line connecting the Rubiales
and Quifa fields with Colombia's electric grid, supplying less expensive power
to run in-field operations, which is expected to be operational in the third
quarter of this year.
"In order to handle the increasing volumes of water produced in the Rubiales
and Quifa fields, the Company has initiated a project to treat produced
formation water from these fields and use it for an irrigation project
designed for agroforestry activity, starting up in the fourth quarter of
"Our investments in the Bicentenario Pipeline will provide us with
approximately 40,000 bbl/d of additional pipeline egress starting in the
second half of this year, significantly reducing the current higher costs
associated with trucking oil production.
"The Company continues to actively invest in projects and infrastructure in
Colombia designed to support our growing production in the country. These
projects include our investments in Puerto Bahia, where we are developing a
new oil export terminal on the Colombian Caribbean coast, which will improve
our export capability and reduce inventory storage.
"A new diluent mixing station is also being constructed at Cusiana which will
lead to optimization and lower costs on the Company's expanding heavy oil
production, starting in the second quarter of this year. With the acquisition
and development of our own light crude assets, the Company expects to see
further cost reductions as a result of using our own light oil crude
production as diluent, instead of using imported natural gasoline.
"We expect these and other projects and initiatives to result in a significant
structural change in our operating costs, targeting overall reductions of
approximately $8/bbl on a pro-forma basis during the remainder of this year,
consisting of a targeted $3 - $4/bbl reduction in production costs, and a $3 -
$5/bbl reduction in transportation and diluent costs.
"Although it is early days, we are encouraged by the results we are seeing in
our STAR pilot project at Quifa SW. We have achieved sustained ignition in
the reservoir during the first quarter and we will continue to evaluate this
"A small scale LNG project is being built in alliance with Exmar NV, which
will enable the Company to more than double its gas production in northern
Colombia when it comes on stream in late 2014.
"Overall I am looking forward to a year of continued production growth,
improving cost structure and an exciting exploration program, as we build for
the long-term benefit of our shareholders and employees, the leading E&P
company focused in Latin America."
Q1 Q4 Q1
Oil & Gas Sales Revenues ($ millions) 1,258.8 1,046.7 931.9
EBITDA ($ millions)^1 694.7 429.0 542.2
EBITDA per share^1 2.16 1.45 1.85
Funds Flow from Operations ($ millions)^1 506.2 231.5 392.5
Funds Flow from Operations per share^1 1.58 0.78 1.34
Adjusted Net Earnings (Losses) from Operations 146.9 38.2 290.0
Adjusted Net Earnings (Losses) from Operations 0.46 0.13 0.99
Net Earnings (Losses) ($ millions) 121.8 (23.8) 258.4
Net Earnings (Losses) per share 0.38 (0.08) 0.88
Average shares outstanding - basic (millions) 321.3 294.6 292.4
^1 The terms EBITDA, funds flow from operations, adjusted net earnings from
operations, are non-IFRS measures. Please see advisories and
reconciliations in the MD&A.
Q1 Q4 Q1
Oil and Liquids (bbl/d)
Colombia 115,318 95,526 80,955
Peru 1,461 1,457 1,703
Total Oil and Liquids (bbl/d) 116,779 96,983 82,658
Natural Gas (boe/d)^1
Colombia 11,110 11,166 10,915
Peru - - -
Total Natural Gas (boe/d) 11,110 11,166 10,915
Total Equivalent (boe/d) 127,889 108,149 93,573
^1 Colombian standard natural gas conversion ratio of 5.7 Mcf/bbl.
Additional production details are available in the MD&A.
The Company's total production net after royalty of 127,889 boe/d increased
37% in the quarter compared to a year ago, driven by strong growth in oil
production from the Company's Rubiales and Quifa heavy oil fields, and added
volumes and growth in light oil production resulting from the PetroMagdalena
and C&C acquisitions completed in July and December 2012, respectively.
Average net oil production after royalty from the Rubiales field increased to
70,495 bbl/d from 57,555 bbl/d a year ago (up 22%), and from the Quifa SW
field to 25,435 bbl/d from 21,885 bbl/d (up 16%), primarily due to
environmental permits received in August 2012 allowing for increased water
injection. Production in the two fields increased 9% and 10% respectively in
the current quarter compared to the fourth quarter 2012. Additional
production net after royalties of 2,026 bbl/d in the quarter was contributed
from the Cajua field, a new commercial field development just to the north of
Net after royalty, mostly light oil production from the PetroMagdalena assets
has grown to approximately 5.2 Mboe/d from less than 2.5 Mboe/d, more than
doubling through successful exploration and development activity.
Revenues and costs associated with the Company's 49% participating interest in
production from Block Z-1 have been recognized in the Company's financial
results since December 12, 2012 as a result of the approval by the applicable
Peruvian authorities. The acquisition had an effective date of January 1,
Production and Sales Volumes
Production to Total Sales Reconciliation
Q1 Q4 Q1
Net Production (boe/d)
Colombia 126,428 106,692 91,870
Peru 1,461 1,457 1,703
Total Net Production (boe/d) 127,889 108,149 93,573
Net Production Sold (boe/d)
Production Available for Sale (boe/d)^1 127,889 107,071 91,870
Diluent Volumes (bbl/d) 9,607 9,671 8,549
Oil for Trading Volumes (bbl/d) 3,895 1,718 10,221
Inventory Balances and Other (boe/d) 2,259 1,681 (11,732)
Volumes Sold (boe/d) 143,650 120,141 98,908
^1 Production available for sale includes all net production in Colombia and
the Company's 49% of net production from Block Z-1, Peru from December 12,
Additional production and sales volume details are available in the MD&A.
The Company produces and sells crude oil and natural gas. It also purchases
liquids and crude oil from third parties for use as diluents to mix with its
heavy oil production and for trading purposes, which are included in the
reported "volumes sold". Sales volumes are also impacted by the relative
movement in inventories during a reporting period. Both revenues and costs
are recognized on the respective volumes sold during the period.
Production available for sale in the quarter increased to 127,889 boe/d from
91,870 boe/d in the same period in 2012 (an increase of 39%), due to rising
production volumes in producing fields. Despite a 23% rise in the Company's
net heavy oil production from the Rubiales, Quifa SW and Cajua oil fields,
diluent volumes increased a smaller 12% from a year ago, due to more purchases
of natural gasoline rather than light oil. Oil for trading volumes in the
current quarter decreased to 3,895 bbl/d from 10,221 bbl/d, while inventory
balances moved to a 2,259 bbl/d draw from an 11,732 boe/d build, in the same
quarter a year ago.
Total volumes sold composed of production volumes available for sale, diluent
volumes added to heavy oil production, oil for trading volumes and inventory
balance changes, increased to 143,650 boe/d in the current quarter from 98,908
boe/d a year ago (an increase of 45%).
Operating Netbacks and Sales Volumes
Oil and Gas
2013 Q1 2012 Q4 2012 Q4
Oil Natural Combined Oil Natural Combined Oil Natural Combined
Gas Gas Gas
Volumes Sold 128,641 11,114 139,755 107,392 11,031 118,423 77,829 10,858 88,687
Crude Oil and 102.06 40.26 97.14 99.83 43.80 94.61 110.96 41.45 102.45
Gas Sales Price
Production Costs 12.89 4.49 12.22 14.78 6.61 14.02 9.42 2.59 8.58
Transportation 15.66 0.05 14.42 14.57 0.01 13.22 13.47 0.06 11.83
Diluent Costs 9.32 - 8.58 8.52 - 7.72 13.99 - 12.27
Sub-Total Costs 37.87 4.54 35.22 37.87 6.62 34.96 36.88 2.65 32.68
Other Costs 0.68 2.91 0.86 5.14 2.99 4.94 (2.40) 2.28 (1.83)
Overlift/Underlift 0.17 0.29 0.18 9.21 (0.89) 8.27 (2.45) (0.04) (2.16)
Total Costs 38.72 7.74 36.26 52.22 8.72 48.17 32.03 4.89 28.69
Operating Netback 63.34 32.52 60.88 47.61 35.08 46.44 78.93 36.56 73.76
Additional cost and netback details are available in the MD&A.
In a news release dated April 9, 2013, the Company disclosed plans for a
structural reduction in its operating costs on a pro-forma basis starting in
the second quarter of 2013 from a number of initiatives and projects,
including a new electrical transmission line supplying less expensive energy,
increased pipeline transportation replacing more expensive trucking of crude
oil, and efficiencies and optimizations related to its diluent costs and
Oil for Trading Volumes and Netbacks
Q1 Q4 Q1
Volumes Sold (bbl/d) 3,895 1,718 10,221
Sales Price ($/bbl) 105.24 100.66 112.94
Cost of Purchases ($/bbl) 101.55 96.99 109.31
Operating Netback ($/bbl) 3.69 3.67 3.63
Additional oil for trading details are available in the MD&A.
The Company also reports separately its netback on crude oil for trading which
was $3.69/bbl in the first quarter compared to $3.63/bbl in the same period in
The Company drilled eight exploration and appraisal wells during the first
quarter, resulting in five discoveries and three dry holes.
On the Cubiro Block, the Company drilled and completed the Copa D-1
exploration well and the Copa A Norte-1 appraisal well encountering 27 feet
and 25 feet of net pay respectively in Carbonera sand intervals. The wells
flowed 900 bbl/d and 770 bbl/d light 42° API oil, respectively, on test.
The Company drilled the Yaguazo-1 exploration well, encountering 14 feet of
net pay in the C5 basal sand on a previously undrilled structure in the
Arrendajo Block. The well is currently being cased to allow for a production
test and the Company is planning on drilling a follow-up appraisal well on the
On the Guama Block, the Company finished drilling the Manamo-1X exploration
well, encountering 251 feet of net pay which tested at a maximum rate of 4.9
MMcf/d of natural gas with 296 bbl/d 54° API condensate. The Company also
started drilling the Capure-1X well on a separate structure, which at the
current date has intersected approximately 23 feet of indicated natural gas
and condensate pay in a secondary zone.
On the CPO-12 Block, the Hayuelo-1X exploration well was drilled as part of a
three well commitment on the block. The well only encountered minor
hydrocarbon traces and was plugged and abandoned as a dry hole. In the CPO-1
Block, the Altillo Oeste-1 exploration well was also plugged and abandoned as
a dry hole after failing to encounter hydrocarbons.
On the Santa Cruz Block, the Company spudded the Phobos-1 exploration well
during the quarter. This well has multiple targets and is expected to reach
its total drilling depth during the second quarter 2013.
During the quarter, a 366 km^2 3D seismic survey was completed in the northern
portion of the CPE-6 Block, aimed at identifying new well locations in the
Hamaca oil prospect. Also, aeromagnetic and aerogravity surveys were
initiated in the COR-15 and COR-24 Blocks; and processing and interpretation
of recently acquired 2D and 3D seismic data in the Muisca, COR-15 and
Portofino Blocks is ongoing, all aimed at identifying future exploration well
On the offshore Block Z-1, the Company and its partner BPZ Energy completed
the acquisition of 429 km^2 of 3D seismic data, which is currently being
processed and interpreted together with 1,143 km^2 of previously acquired 3D
On Block 138, the Company spudded the Yahuish-1X exploration well on April 16,
2013. The well is expected to take 60 to 80 days to reach total depth.
On Block 135, the Company continued with the acquisition of 789 km of 2D
seismic data, expected to be completed in the second quarter. In Block 116 a
proposed exploration well, Fortuna-1X is expected to start drilling during the
second half of 2013.
On Blocks N-10-96 and O-10-96, a hyperspectral geophysical survey has been
completed and advance planning has been initiated for an exploration well
expected to be drilled in the second half of 2013.
During the quarter, two exploration wells (Kangaroo-1 and Emu-1) were drilled
as part of a farm-in agreement covering five blocks in the offshore Santos
Basin. The Kangaroo-1 well encountered an 82 foot gross (58 foot net pay) oil
reservoir section in a down flank position in an Eocene structure. The
operator of the blocks, Karoon Gas is planning to drill an appraisal well to
the Kangaroo discovery later in the year. The Emu-1 well failed to encounter
pay zones and was plugged and abandoned. The Company is participating in a
third option well (Bilby-1) which has resulted in an oil discovery in a late
Cretaceous reservoir interval as indicated from wireline logs and pressure and
fluid samples. Additional evaluation of the oil zone is ongoing, and the well
is expected to continue drilling to a total depth of approximately 15,050 feet
during May 2013.
First Quarter 2013 Conference call Details
The Company has scheduled a telephone conference call for investors and
analysts on Thursday, May 9, 2013 at 8:00 a.m. (Bogotá time), 9:00 a.m.
(Toronto time) and 10:00 a.m. (Rio de Janeiro time) to discuss the Company's
first quarter results. Participants will include Ronald Pantin, Chief
Executive Officer, José Francisco Arata, President, and selected members of
senior management. Pacific Rubiales expects to release its first quarter
results on Wednesday, May 8, 2013, after market close.
The live conference call will be conducted in English with simultaneous
Spanish translation. The Company will post a presentation on the Company's
website prior to the call, which can be accessed at www.pacificrubiales.com.
Analysts and interested investors are invited to participate using the dial-in
numbers as follows:
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): 40205504
Conference ID (Spanish Participants): 40208313
The conference call will be webcast, which can be accessed through the
A replay of the call will be available until 23:59 pm (Toronto time), May 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): 40205504
Encore ID (Spanish Participants): 40208313
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
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
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 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.
Readers should give attention to the estimates of individual classes of
resources and appreciate the differing probabilities of recovery associated
with each class. Estimates of remaining recoverable resources (unrisked)
include Prospective Resources that have not been adjusted for risk based on
the chance of discovery or the chance of development and Contingent Resources
that have not been adjusted for risk based on the chance of development. It is
not an estimate of volumes that may be recovered. Actual recovery is likely to
be less and may be substantially less or zero.
Prospective Resources are those quantities of oil and gas estimated to be
potentially recoverable from undiscovered accumulations. There is no
certainty that the Prospective Resources will be discovered. If discovered,
there is no certainty that it will be commercially viable to produce any
portion of the Prospective Resources. Application of any geological and
economic chance factor does not equate Prospective Resources to Contingent
Resources or reserves. In addition, the following mutually exclusive
Classification of Resources were used:
*Low Estimate - This is considered to be a conservative estimate of the
quantity that will actually be recovered from the accumulation. This term
reflects a P90 confidence level where there is a 90% chance that a
successful discovery will be equal to more than this resources estimate.
*Best Estimate - This is considered to be the best estimate of the quantity
that will actually be recovered from the accumulation. This term is a
measure of central tendency of the uncertainty distribution and in this
case reflects a 50% confidence level where there is a 50% chance that the
successful discovery will be equal to or more than this resources
*High Estimate - This is considered to be an optimistic estimate of the
quantity that will actually be recovered from the accumulation. This term
reflects a P10 confidence level where there is a 10% chance that the
successful discovery will be equal to or more than this resources
Contingent Resources are those quantities of petroleum estimated, as of a
given date, to be potentially recoverable from known accumulations using
established technology or technology under development, but which are not
currently considered to be commercially recoverable due to one or more
contingencies. Contingent Resources have an associated chance of development
(economic, regulatory, market and facility, corporate commitment or political
risks). The estimates herein have not been risked for the chance of
development. There is no certainty that the Contingent Resources will be
developed and, if they are developed, there is no certainty as to the timing
of such development or that it will be commercially viable to produce any
portion of the Contingent Resources.
In this news release total volumes of resources have been expressed for high
case estimates, low case estimates and best case estimates for both Contingent
and Prospective Resources. These total volumes are arithmetic sums of
multiple estimates of Contingent and Prospective Resources, as the case may
be, which statistical principles indicate may be misleading as to volumes that
may actually be recovered. Readers should give attention to the estimates of
individual classes of resources and appreciate the differing probabilities of
recovery associated with each class as explained in this section.
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.
Christopher (Chris) LeGallais
Sr. Vice President, Investor Relations
+1 (647) 295-3700
Sr. Manager, Investor Relations
+57 (1) 511-2298
Manager, Investor Relations
+57 (1) 511-2319
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