Pacific Rubiales Energy Corp. reports the launch of a broadening of its comprehensive growth strategy, reinforcing its emphasis on growth in the E&P sector, charting a new path into the broader energy sector, and complementing the mounting importance of the Company's activities in Latin America.

Over the past three years, the Company has pursued a relentless and successful growth strategy in the oil and gas sector in Colombia through acquisitions and organic growth. The technical competency and leadership of the Company, coupled with the opportunities that it has been able to tap into, has allowed it to become, in a short amount of time, the second largest oil and gas operator in Colombia.

The continued growth of the Company, and in particular the projected increase in its production of heavy oil, presents special challenges, not only in upstream operations, but also with respect to the secure and stable access to profitable markets. As the Company grows and strengthens its position as the most actively traded oil and gas stock in Colombia, it has to manage a more complex operating environment and an array of new external challenges and actors. This new competitive landscape calls for downstream market integration and also a more substantive integration into the host countries in which it operates.

The strategic review process announced today has three major components: (i) growth based upon discovering, developing and producing new and existing reserves; (ii) securing market access by participating in key oil and gas transportation and port infrastructure projects; and (iii) integrating downstream assets in the value chain while strengthening the links with stakeholders in the host countries.

Ronald Pantin, Chief Executive Officer of the Company commented, "This new adaptive strategy seeks primarily to mitigate the inherent volatility in the oil and gas commodities market. It will allow us to start exploring a wider spectrum of opportunities in the energy sector, from our present secure base in the upstream market, while opening what we believe are new windows of opportunity, with the right balance between access to markets, capital cost and strategic control. The integration strategy that has been unveiled by the Company responds to clear business objectives, within the framework of minimizing risks and cash outlays but allowing for strategic positioning and control. It also responds to the growing need to establish stronger links with the host countries and their economic development, their government, and the social forces in the areas where we operate."

Oil & Gas Growth The Company continues to strive to create the greatest possible value from its portfolio of assets. The Rubiales Field continues to be the center of the short term strategy and the objective of reaching a gross production of 170,000 bbl/d by year-end is now within sight. The neighbouring Quifa Block has begun to reach its early promise, with a target of 30,000 bbl/d gross for year-end and 60,000 bbl/d gross by the end of 2011 and assures the Company of continued production well into the future. The Company also expects STAR, the Company's secondary recovery project, to add a significant amount of reserves in the Rubiales Field and the rest of our heavy oil blocks as it progresses.

The recent successes in Block CPE-6 have begun to confirm the Company's view that its exploration blocks adjacent to the Rubiales Field hold important promise. A longer term view of the portfolio has Arauca, CPO-1, Guama, Topoyaco and other areas as its main focus. These assets will continue to be the subject of sustained efforts by the Company in the months to come. The recently announced entry into the Republic of Guatemala and the commencement of operations in Peru also falls within this search for growth while diversifying the Company's resource base.

Thus, E&P will remain the main focus of investment and activities for the Company, moving it towards a gross production of 500,000 bbl/d in the next few years.

Tags: Pacific Rubiales Energy Corp.