Pacific Rubiales Energy Corp. has declared an expanded capital plan for 2010 that includes a US$853 million capital expenditure program. With this investment program the companies will double its net production, after royalties, from the current estimate for year end 2009 of 46,000 boe per day to 92,000 boe at the end of next year. At Quifa, in Colombia, the company will spend US$162 million for the accelerated development of the block, which includes drilling 20 exploration/appraisal wells and 36 development wells during 2010.

Ronald Pantin, the company's Chief Executive Officer, stated: "Given the stellar performance we have had ramping up production at the Rubiales/Piriri fields to date, the exploration success at the Quifa block, and the successful opening of the ODL pipeline, we believe there is a compelling rationale to accelerate the development of both these fields, with a particular focus on the Quifa block. This will allow us to significantly increase our production, expected to reach 225,000 boe per day of gross production by the end of next year, equivalent to 92,000 boe per day net to the company after royalties. The expanded production targets reinforce our company's strategy to remain as the fastest growing and most dynamic low-cost producer in the region."

Capital Expenditure Program The US$853 million capital program for 2010 includes US$165.5 million for development drilling, US$190.8 million for exploration, US$471.8 million for production facilities and US$25 million to advance the STAR pilot project. This is an increase of US$471 million over the 2009 capital expenditures and US$394 million over the previously projected 2010 budget.

The company is financing its 2010 capital plan from current operating cash flow and from the early exercise of its warrants which, if exercised in full, would result in net proceeds to the company of approximately US$275 million, after payment of incentive fees.

Highlights of the capital budget: Development Drilling: US$97 million is allocated to drill 113 producing wells at the Rubiales/Piriri Field (41 vertical, 62 horizontal and 10 injector wells); US$53.2 million is designated to drill 36 producing wells at Quifa (1 vertical and 35 horizontal); and US$15.3 million will go to increase production in the medium-light oil fields to 11,000 bopd by year end.

Exploration: US$94.7 million will go to acquire 6,000 kilometers of seismic work and US$96.1 million to drill 36 exploration/appraisal wells, of which US$43.4 million will be dedicated to drill 20 new wells at Quifa. The 2010 exploration campaign is targeting 405 million boe of mean un-risked resources.

Production Facilities: US$342.3 million will be spent to increase the Rubiales field capacity up to 170,000 bopd; and most importantly, US$65.5 million will go to begin building a new production facility at Quifa that will allow for an initial 30,000 bopd capacity; US$21.5 million is dedicated to upgrade facilities in the medium-light oil and natural gas fields; and US$42.5 million is assigned to the Llanomulsion project, transportation optimization and Information Technology Projects.

Tags: Pacific Rubiales Energy Corp.