Pacific Rubiales Energy Corp. provides an update on its continuous appraisal of the crude oil reserves in the Rubiales Field, as well as declared the awarding of a new exploration block in Colombia.

At the Rubiales field in the Llanos Orientales Basin in Colombia, the company has successfully completed an exploratory well identified as RB-51, on which it commenced a production test on January 15. The results indicate a production of 430 barrels of oil per day (bopd), which is an excellent production rate for a vertical well.

This well was drilled 2.5 kilometres to the southwest of the producing well RB-31, which was previously thought to be the outermost well on the western flank of the field. The well is located in the field's safety zone (the 5 kilometre strip surrounding the contractually assigned area), and the results confirm the lateral extension of the field. It is expected that these results, once factored into the reservoir model, will result in the upgrade of the company's already identified resources.

The test results will be finalized in early April, at which time the company will be able to request from Ecopetrol the assignment of an additional commercial area of approximately 35 square kilometres, and will be able to develop additional production facilities for this portion of the field.

The company achieved a new production record for its Rubiales field on February 12, 2008 when the company reached the landmark of 10,655 bopd net (29,050 bopd gross). This steady increase reaffirms the company's push to reach gross production of 126,000 bopd and its commitment to successfully develop the field to its full potential.

The company has been awarded the block identified as JAGUEYES 3433-A, in the Casanare Department, in the furthest north region of Los Llanos Orientales. This block was offered by the Agencia Nacional de Hidrocarburos in a bidding process that culminated in the announcement of the successful bidders on February 8, 2008.

The JAGUEYES 3433-A block, with an area of 21,500 hectares, is surrounded by producing oil fields and provides easy access.

The company's work commitment for this block consists of 112 square kilometers of 3D seismic in the first phase (eight months), at an investment of approximately US$3 million. If exploratory targets are then identified, the proposal calls for the drilling of three exploratory wells in three different phases (10, 12 and 12 months respectively), at an investment of US$5 million for each well.

Tags: Pacific Rubiales Energy Corp.