Pacific Rubiales announces preliminary independent evaluation of the progress of the Star Pilot Project in Quifa SW,

Pacific Rubiales announces preliminary independent evaluation of the progress 
of the Star Pilot Project in Quifa SW, demonstrating a potential doubling of 
the ultimate recovery factor 
TORONTO, Sept. 18, 2013 /CNW/ - Pacific Rubiales Energy Corp. (TSX:PRE; BVC: 
PREC; BOVESPA: PREB) announced today that it has received independent reports 
relating to the progress of its proprietary Synchronized Thermal Additional 
Recovery ("STAR") enhanced oil recovery pilot project in the Quifa SW heavy 
oil field. The reports include estimates of the Original Oil In Place ("OOIP") 
for the project, which combined with the accumulated production from the area 
since the inception of the project, allows the Company to estimate that at 
least a doubling of the recovery factor has been achieved from commencement of 
air injection in February, 2013 to date. 
Ronald Pantin, Chief Executive Officer of the Company, commented: 
"The estimates from the independent engineers of the OOIP and the drainage 
areas that will be affected by the pilot test area, the cumulative oil volumes 
produced to date and the sustained thermal ignition of the reservoir and 
successful synchronization of the producing pilot wells, have led Pacific 
Rubiales to estimate at least a potential doubling the recovery factor can be 
achieved by STAR. These results represent an important inflection point in the 
path to successful commercial application of STAR in one of Colombia's most 
important heavy oil fields. 
"Based on these results, the Company is planning on converting two contiguous 
well clusters in the pilot test area, which are currently producing on primary 
flow, to STAR before the end of 2013. Additionally, the Company has initiated 
planning for full commercial rollout of STAR in the Quifa SW field beginning 
in 2014. 
"We believe that the success of STAR has important implications beyond the 
Quifa SW field because more than 75% of Colombia's total oil production growth 
since 2004 has come from heavy oil, with the majority of that coming from the 
Company operated Rubiales and Quifa fields, producing under primary recovery 
flow methods only. The success of STAR also provides an important launching 
pad for the future of the Rubiales field, currently under evaluation." 
The Quifa SW field is located just southwest of and adjacent to the Company's 
Rubiales field, the largest producing oil field in Colombia today. According 
to the year-end 2012 reserve report from the Company's external engineering 
firm, this field has an estimated OOIP of 1.331 Bbbl which covers a total 
field area of approximately 44 thousand gross acres with net pay thickness 
greater than 10 feet. During the first half of 2013, the field produced oil at 
a rate of 54.4 Mbbl/d gross total field (24.4 Mbbl/d net after royalties). The 
Quifa SW field is currently producing under primary recovery techniques 
resulting in a recovery factor ("RF") of approximately 14%. As of year-end 
2012, the Company had 73.1 MMbbl of net 2P reserves at Quifa SW, representing 
approximately 21% of its total net 2P certified oil and liquids reserves base 
in Colombia. Pacific Rubiales has a 60% working interest and is operator of 
the field, while Ecopetrol, S.A. holds the remaining interest. The Quifa 
contract was signed in December of 2003 and expires in December of 2031. 
The Company has received technical reports analyzing the progress of the STAR 
pilot project from three independent engineering firms: Hot-Tec Energy Inc. 
("Hot-Tec"), RPS Energy Canada Ltd. ("RPS") and GLJ Petroleum Consultants Ltd. 
("GLJ") which have provided professional opinions on the STAR Pilot project 
performance to date. 
The drainage areas and OOIP that will be affected by the STAR Pilot project 
were estimated by these three firms, depending on their particular 
assumptions, as follows: 


    --  Hot-Tec: 1.62 MMbbl, for a drainage area of 50 acres
    --  RPS: 1.86 MMbbl, for a drainage area of 85 acres
    --  GLJ: 1.78 MMbbl, for a drainage area of 80 acres

Given that the cumulative production from the project, as a result of primary 
recovery, steam and nitrogen injection and in-situ combustion, is 
approximately 506 Mbbl to date, it is possible to calculate that the range of 
RF attributable to the Project is 27.1% - 31.2%, which at least doubles the RF 
estimated for the rest of the field, producing under primary recovery.

The Company considers these RF results as preliminary and expects them to 
further increase as the production in the STAR pilot project area continues as 
planned for at least a few more months.

Additional highlights from each of the reports include:

Hot-Tec
    --  The Quifa SW field's In-Situ Combustion Project is an
        unqualified success. With more than 200 in-situ combustion
        field tests, Hot-Tec regards this as the best engineered and
        best planned project with real time monitoring and control
        capabilities as well as the ability to safely handle H(2)S in
        processing facilities.
    --  In-situ combustion is the process of choice in Quifa, which is
        an oil field with a strong water drive.
    --  The incremental oil recovery in Quifa SW would have been higher
        still under normal operational conditions without rate or time
        constraints.
    --  It has been clearly demonstrated that the Quifa SW crude
        responds positively to oxidation (through air injection) and is
        a good candidate for in-situ combustion.
    --  The field performance parameters are in good agreement with
        those derived from laboratory tests.
    --  The principal reason for success in the application of the STAR
        technology is the use of synchronization for identifying and
        correcting the combustion front position.
    --  Massive expansion of the STAR pilot project by drilling new
        injectors and producers, and inclusion of existing wells should
        be done soon to capture the gas and oil leaving the current
        unconfined pattern, and increasing the combustion efficiency.

RPS
    --  The STAR pilot project has established incremental oil mobility
        and recovery by thermal stimulation by in-situ combustion.
    --  Based on the range of OIIP and EUR (Estimated Ultimate
        Recovery) estimates, RPS calculates a range of potential
        incremental recovery factor due to thermal recovery by in-situ
        combustion process of from 26 % to 44 % OIIP.

GLJ
    --  Once injection of gases started, water cuts ceased increasing
        and conversely oil cut ceased decreasing.

Hot-Tec Energy Inc. is a private company affiliated with members of the 
In-Situ Combustion Research Group, Department of Chemical and Petroleum 
Engineering, Schulich School of Engineering, University of Calgary. The In 
Situ Combustion Research Group is recognized as a global leader in the 
application of in-situ combustion recovery processes.

RPS Energy Canada Ltd. is a part of RPS Group Plc, providing advice upon the 
exploration and production of oil & gas and other natural resources. RPS is a 
leading consultancy providing support and advice on the development of natural 
energy resources across the complete asset life cycle, and is the independent 
engineer that has certified the Quifa SW reserves for Pacific Rubiales in the 
past.

GLJ Petroleum Consultants Ltd. is a premier oil and gas resource consulting 
firm located in Calgary, Alberta, Canada, and was engaged by Hot-Tec Energy 
Inc. to analyse the pre-air injection behaviour of the STAR pilot.

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, Peru, Brazil, Papua New Guinea and 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 13, 2013 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.

Boe Conversion

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.

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.

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.|
|_____|_______________________________________________________________|
|Bbbl |                                                Billion barrels|
|_____|_______________________________________________________________|
|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 
Roberto Puente Sr. Manager, Investor Relations +57 (1) 511-2298 
Kate Stark Manager, Investor Relations +1 (416) 362-7735 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/September2013/18/c8573.html 
CO: Pacific Rubiales Energy Corp.
ST: Ontario
NI: OIL FIELD  
-0- Sep/18/2013 23:05 GMT
 
 
Press spacebar to pause and continue. Press esc to stop.