a world class exploration & production...

A World Class Exploration & Production Company

Information for MediaMarch 14, 2012

VP of Corporate AffairsCommunications Department

Abbreviationsbpd: kbpd: MMbbl: MMpcd: boe/d:MMboe: Ha(s): E&P: TEA: 2D (km): 3D (km2): Km 2D equiv. : MM USD:

Barrels of oil per dayThousand of barrels per dayMillions of barrelsMillions of cubic feet per dayEquivalent barrels of oil per day (oil + gas)Millions of equivalent barrels of oil (oil + gas)Hectare(s)Exploration & Production ContractTechnical Evaluation AgreementKilmeters of seismic in 2 dimensionsSquare kilometers of seismic in 3 dimensions2D + 3D seismic kilometersMillions of American dollars

VP of Corporate Affairs - Communications Department

16 highlights of the Growing process

Increased production in 2011

The average net production of 2011 was 86,497 barrels/day, representing a growth of 52% from 2010. The total average pro-duction operated by the company was 218,450 barrels/day.

A two-fold increase in the main financial indicatorsThe consolidated net income in 2011 was MM US$ 554, more than the double compared with the net income in 2010. The gross revenue increased to MM US$3,381 compared with MM US$ 1,662 in 2010 (104% more).

A two-fold increase in EBITDA

The EBITDA in 2011 increased to MM US$ 1,947 compared with the MM US$ 924 in 2010. The EBITDA for 2011 represented a margin of 58% compared to the total revenues for the period.

Pacific Rubiales was one of the companies with a major tax contribution to Colombia

The company generated taxes by $ 4,9 billion pesos, making Pacific the second company in the oil & gas sector with a biggest contribution to Colombia with direct and indirect taxes (royalties, income tax, estate tax, Compensation Funds, Pensions, Contribution of Energy and transport by pipeline, among others).

Pacific Rubiales A World Class Company

Record growth in reservesThe proven and probable reserves (2P) of Pacific Rubiales Energy increased 52% during 2011. Net 2P reserves increased to 407 million barrels of oil equivalent (Mboe) in 2011.

High exploration success rateIn 2011 it was achieved a success rate of 84% thanks to the drilling activity in the exploration blocks in Colombia (drilling a total of 69 exploration/appraisal wells, 58 successful).

High replacement ratio and addition of new discoveries

The reserves replacement ratio of Pacific Rubiales Energy was 536% in 2011, which means that for every barrel of oil equivalent produced, 5.36 barrels of oil equivalent were incorporated to the 2P reserves category.

Reserves increase in new oil fieldsPacific Rubiales Energy shows a growth and diversification of its reserves base.

Production from new fields, other than Rubiales and Quifa SW, beganDuring the 4Q of 2011, the company began the production of Quifa North and Sabanero Block, the last one operated by Maurel & Prom.

2011 a year of extraordinary Results for investors and Colombia


Increase oil production and reserves, operational and finance strength

Consolidation of the investments to strengthen the business of the company

Investments during 2011 were around $ 2,04 billion pesos ($ 1,76 billion pesos in 2010). $868,000 million pesos were invested in the expansion and construction of production facilities; $493,000 million pesos in exploration activities in Colombia, Peru and Guatemala; $116,000 million pesos in the acquisition of 49.9% of Maurel & Prom Colombia BV; $382,000 million pesos drilling development wells; and $181,000 million pesos in other projects, including the development of the STAR technology.

Increase and optimization of the transport infrastructureIn December 2011, the ODL pipeline reached a 340,000 barrels/day capacity with the addition of two new pumping stations (Corocora y Jagüeyes). The construction of new blending facilities in Cusiana was initiated in order to optimize the thinners required for transportation, ensuring an increase in the oil transport capacity. The ODL is developed in partnership with Ecopetrol.

The construction of the Bicentennial Pipeline (OBC) initiatedThe construction of the phase 1 of the OBC pipeline initiated in 2011. This phase includes the construction of a gas pipeline of 42 inches diameter and a length of 230 kms, that will allow the transport of 120,000 barrels/day of oil from Pacific. The com-pany has a participation of 32.88% in the OBC.


Listing in the Brazilian Stock ExchangeOn February 1, 2012, the Company received approval from the Securities Commission, the Brazilian regulatory agency responsi-ble for overseeing public issuers, and the Brazilian stock exchange BM & FBOVESPA SA. Pacific Rubiales is the first Canadian company listed on the BDR BOVESPA.

Successful new offer of senior unsecured notesIn December 2011, the Company closed a successful offer of MM US $300 in senior unsecured notes at a rate of 7.25% by 2021. The net revenue will be used by the Company for general corporate purposes, which may include acquisitions and inves-tments in oil and gas assets and in related infrastructure.

Three of the major rating agencies improved the status of Pacific RubialesMoody's Investors Service upgraded the corporate credit rating of Pacific Rubiales Energy from Ba3 to Ba2, with stable outlook. Fitch Ratings upgraded its qualification from 'BB-' to 'BB'. Standard & Poors upgraded the corporate credit rating from BB- to BB.

A significative increase in the dividends was approvedTaking into account the excellent results of Pacific Rubiales, the board approved an 18% increase in the dividend to be paid in 2012 compared with last year.



Our History

2004

2007

2008

2009

2011

2012

Pacific Stratus Energy founded.

Petro Rubiales Energy Corp. acquires MetaPetroleum who operates the Rubiales field.

Merger of Pacific Stratus Energy & Petro Rubiales Energy Corp. Acquisition of Kappa Energy.

Pacific Rubiales Energy operating as a fully integrated company with producing oil and gas assets and significant exploration potential.

CPE-6 received approval from ANH to convert a part of the TEA contract into E&P contract

Pacific Rubiales Energy was listed in Brazil’s Bolsa de Valores Mercadorias e Futuros.

TARGET• Grow production to 500,000 boe/d

• Goal is to double reserves in two years

• Leading E&P independent in Latin America

2010Pacific Rubiales Energy was listed as the 1st foreign company in the Colombian stock exchange (BVC).


Exploración y ProducciónExploration & Production1


CONTRIBUTION TO COLOMBIA’S PRODUCTION PER COMPANY %

PetromineralesOccidentalHocolPerencoGrantierraPetrobrasMansarovarEquion CanacolEcopetrolOther*Pacific Rubiales

-5% 5% 15% 25% 35% 35%

41

* Approximately 40 companiesSource: National Hydrocarbons Agency (ANH), Ministry of Mines and Energy and Pacific Rubiales Energy calculations

The company with the biggest contribution to Colombia’s production growth

1


The production increased 52% in 2011

Source: Ministry of Mines and Energy and Pacific Rubiales Energy calculations

OPERATED PRODUCTION PER COMPANY DEC. 31. 2011 (BPD)

AVERAGE GROSS PRODUCTION PER YEAR BOE/D

218,45072,220

35,20935,079

Ecopetrol

Pacific Rubiales

Occidental

Equion

Mansarovar

Hocol

324,703

32,30731,795Petromine-

rales

2011

2010

2009

2008

2007

218,450144,307

82,88746,764

21,292boe/d

Reserves increased 52% in 2011


NET RESERVES* PER YEAR(MMBOE)

CONTRIBUTION TO NET RESERVES OF PACIFIC PER BLOCK (%)

208 28

0

268

407

188

20112010200920082007

2919

11

Rubiales

La Creciente

36

42

Sabanero*

Otherblocks

CPE-6

Quifa

* 2P reserves (proved + probable) * Operated by Maurel & Prom Colombia BV (49.9%)

Diversified Portfolio of Assets

Pacific Rubiales is the second company with the largest number of area: approximately 7,689,000 hectares.

45 BLOCKS

DISTRIBUTION PER CONTRACT STATUS

Exploration

Exploration & Production

Production

30

6

10

BLOCK DISTRIBUTION PER BASIN

Llanos North

Llanos South

Lower Magdalena Valley

Cordillera

Middle & Upper Magdalena Valleys

Putumayo

Amatique (Guatemala)

Marañón (Perú)

6

9

7

3

9

6

3

2


PANAMÁ

VENEZUELA

COLOMBIA

BRASIL

ECUADOR

CARIBBEAN SEA

PAC

IFIC

OC

EAN

MaracaiboLake

CENTRAL & SOUTH AMERICA

1

2

3

45

6

32

1110

12

8

14

7

935

3736

1342

18

34

15

16

38

3940

3341

43 44

17

20

19

21

23

24

26

22

25

ARAUCA

GUAJIRA

NORTEDE

SANTANDER

CASANARE

SANTANDER

CALDAS

QUINDÍO

RISARALDA

ANTIOQUIA

CÓRDOBA

SUCRE

CESAR

ATLÁNTICO

MAGDALENA

ATLÁNTICO

CHOCÓ

CUNDINAMARCA

AMAZONAS

PUTUMAYO

VAUPÉSCAQUETÁ

HUILA

VALLEDEL

CAUCA

CAUCA

GUAVIARE

GUAINÍA

VICHADA

NARIÑO

META

TOLIMA

BOYACÁ

BOGOTÁ

RIOACHA

SANTA MARTABARRANQUILLA

SAN JOSÉ

MITÚ

FLORENCIA

POPAYÁN

CALI

PASTO

NEIVA

ARMENIA

PEREIRA

PEREIRA

MANIZALES

PUERTO CARREÑO

PUERTO IRINIDA

ARAUCA

CÚCUTA

VALLEDUPAR

MEDELLÍN

TUNJA

IBAGUÉ

BUCARAMANGA

MONTERÍA

YOPAL

MOCOA

Buenaventura

Cobeñas

Cartagena

Barranquilla

Santa Marta

Tumaco

Transport2

Improving the Transport Infrastructure

Los Llanos Pipeline (ODL) • Started operating in 2009.• Connects Rubiales Field with Ocensa pipeline.• In 2011 the capacity of ODL was increased to 340,000 bpd.• The pipeline is operated by the company ‘Oleoducto de Los Llanos’. The shareholders are Pacific Rubiales Energy (35%) and Ecopetrol (65%).• Is the only infrastructure in place in southern Llanos basin.• Key for the heavy oil evacuation.

OCENSA Pipeline• Pacific acquired access to Ocensa pipeline for a 10 year period.

Bicentenario Pipeline (OBC)• Pacific has a participation of 32.9%.• OBC will be the largest pipeline in Colombia. • Construction started on October 2011 and will be developed in 5 phases.• The first portion will start operations in the second semester of 2012.• It will be finished by December 2014 (approx.). • OBC capacity will be 450,000 bpd. 3


Financial Results & Stock Information3

Multiplying the Success

GROSS REVENUE (MM USD)

1,662

3,381

Dec. 2010 Dec. 2011

NET INCOME (MM USD)

218

554

Dec. 2010 Dec. 2011

EBITDA (MM USD)

924

1,947

Dec. 2010 Dec. 2011


Outstanding Performance in 2012


2012 Feb Mar

30.000

35.000

40.000

45.000

50.000

55.000

15:59 - 14 Dec - 2011 - 15:00 13 Mar - 2012

2012 Plan4

Growth and Expansion

Resultados Financieros y Comportamiento de la Acción3 Exploration

Facilities

Developmentdrilling

Projects

340

MM USD

560

285

50

45%

4%

23%

28%

Facilities

Projects

Development drilling

Exploration

Over $1.2 billion net capital program

The 2012 Plan is focused in 4 key points:

Production expansion in Rubiales/Piriri and Quifa SW blocks.

Production increase of the newly producing blocks: Quifa Norte & Sabanero.

Begin the commercial production of oil in CPE-6 block.

Continue drilling and the seismic activities in the whole exploration portfolio in Colombia, Peru & Guatemala.

1.2.3.4.


MEDIA RELATIONS:

Federico RestrepoVP of Corporate Affairs

Ana Eloisa ZúñigaCommunications Manager

Gilma SampayoCommunications Leader

[email protected] 371 9267

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