Pacific Rubiales awarded three blocks in Brazil`s 11th bid round

       Pacific Rubiales awarded three blocks in Brazil`s 11th bid round

PR Newswire

TORONTO, May 16, 2013

TORONTO, May 16, 2013 /PRNewswire/ - Pacific Rubiales Energy Corp. (TSX:PRE;
BVC: PREC; BOVESPA: PREB) is pleased to announce today that it has been
awarded three blocks in Brazil's 11th Bid Round (the "Bid Round") organized by
the Agencia Nacional do Petróleo, Gás Natural e Biocombustíveis of Brazil
("ANP"). The Company participated in the Bid Round through its wholly-owned
subsidiary, Pacific Brasil Exploração e Produção de Óleo e Gás Ltda.

The blocks awarded to  the Company are  located in the  Foz do Amazonas  Basin 
(one block) and in the Pará-Maranhão  Basin (two blocks) in the northern  deep 
water of offshore Brazil,  and have a total  area of approximately 2,300  km^2 
gross (1,153  km^2 net)  (See  attached map).  The  blocks were  acquired  in 
consortiums that include as partners the companies Queiroz Galvão Exploração e
Produção S.A. ("QGEP") and Premier Oil  PC ("Premier"). All three blocks  have 
an initial  five  year  exploration  phase  with  the  option  to  extend  the 
exploration phase by an additional three years.

Ronald Pantin, Chief Executive Officer of Pacific Rubiales commented: "We  are 
very pleased with the results  of the Bid Round  and the acquisition of  these 
high potential blocks. This strengthens and consolidates our position in  the 
Equatorial Margin basins of South America, which we started to build with  our 
investment in CGX Energy  Inc. (which has  blocks in Guyana),  as well as  our 
position in  Brazil`s offshore  Santos Basin,  where we  have had  recent  oil 
discoveries. We are also pleased to be  partnered with QGEP, which is one  of 
Brazil`s largest oil companies and with Premier, a global oil producer."

Foz do Amazonas Basin

The Company, in a consortium, was  awarded the Block FZA-M-90, located in  the 
deep water offshore Sector AP1. The  consortium consists of QGEP as  operator 
of  the  block  with  a  35%  participating  interest,  Premier  with  a   35% 
participating interest, and PRE with a 30% participating interest.

The exploration work commitments include a 3D seismic program over the  entire 
block, plus  the drilling  of  one exploration  well.  The award  includes  a 
signature bonus payable to the ANP of R$ 54.1 million (U.S.$27 million).

Pará-Maranhão Basin

The Company participated  in a  consortium with  QGEP and  was awarded  Blocks 
PAMA-M-265 and  PAMA-M-337, both  located in  the deep  water offshore  Sector 
SPAMA-AP1.

In Block PAMA-M-265, the Company will have a 70% participating interest, while
in Block PAMA-M-337 the Company will  have a 50% participating interest,  with 
the remaining interest held by QGEP. The exploration work commitments  include 
3D seismic over each block, plus the drilling of one exploration well on Block
PAMA-M-337. The award includes  a signature bonus  of R$10.1 million  (U.S.$5 
million) for Block PAMA-M-265 and  R$70.4 million (U.S.$35 million) for  Block 
PAMA-M-337, payable to the ANP. Both blocks will be operated by QGEP.

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 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  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 news  release due to, among other  factors, 
difficulties  or   interruptions   encountered  during   the   production   of 
hydrocarbons.

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.

SOURCE Pacific Rubiales Energy Corp.

Image with caption: "Map of award blocks (CNW Group/Pacific Rubiales Energy
Corp.)". Image available at:
http://photos.newswire.ca/images/download/20130516_C7575_PHOTO_EN_26803.jpg

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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