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Last updated on April 24, 2014 at 17:35 EDT

Pacific Rubiales confirms oil discovery on the Karoon blocks, offshore Brazil

January 24, 2013

TORONTO, Jan. 24, 2013 /PRNewswire/ – Pacific Rubiales Energy Corp. (TSX: PRE;
BVC: PREC; BOVESPA: PREB) confirmed today the discovery of light oil at
the Kangaroo-1 exploration well drilling on block S-M-1101, in the
Santos basin, offshore Brazil.  The well was drilled as part of an
agreement announced by the Company on September 18, 2012, as a minimum
work commitment for both the S-M-1101 and S-M-1165 blocks, where the
Company holds a 35% participating interest (subject to approval by
Brazil’s Agência Nacional do Petróleo, Gás Natural e Biocombustíveis
(ANP)).

As announced by the operator of the blocks, Karoon Gas Australia Ltd.
(ASX: KAR), (see Karoon website: www.karoongas.com.au), the Kangaroo-1 well has been drilled to a depth of 3,049 meters and
the presence of a light oil column has been confirmed by mudlog,
wireline petrophysical and MDT pressure data in Eocene aged rocks.  A
gross column of 25 meters and an oil / water contact is established
from pressure data interpretation.

The well intersected the Eocene reservoir section 300 metres down dip
from the trap crest as interpreted on seismic mapping by Karoon.  A
potential gross hydrocarbon column of approximately 350 metres is
estimated by Karoon for the entire trip.

As this was not the primary target at the Kangaroo-1 well, the discovery
of oil in the Eocene reservoir at the Kangaroo-1 well provides
additional information with respect to other potential prospects within
the Karoon blocks.  Also, the well exhibited good oil shows at the base
of the Miocene aged carbonate layers, but these are still under a
detail evaluation to determine their potential.

A wireline program is currently underway with full results expected in
the coming days.  A drill stem test program will be assessed on
completion of the wireline evaluation.  The full evaluation program for
the well is expected to continue through February.  Pacific Rubiales
expects to issue an additional news release providing further technical
details relating to these drill results.

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.


Source: PR Newswire