Pacific Rubiales Announces Investment in Guyana

TORONTO, Oct. 13, 2011 /PRNewswire/ -- Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC) is pleased to announce that it has agreed to purchase 58,720,000 common shares in the capital of CGX Energy Inc. (TSX-V: OYL) ("CGX") at a price of C$0.70 per common share for an aggregate investment of C$41,104,000. CGX is a Canadian-based oil and gas exploration company focused on the exploration for oil in the Guyana/Suriname Basin, an area that is ranked second in the world for oil and gas prospectively by the United States Geological Service. For more information, please see CGX's website at www.cgxenergy.ca.

Ronald Pantin, Chief Executive Officer, commented "We are excited about this investment as it represents a step forward into offshore opportunities in one of the most prospective areas in the world."

This investment is being made pursuant to CGX's recently announced bought deal financing through a syndicate of underwriters led by Cormark Securities Inc. and including GMP Securities L.P., Canaccord Genuity Corp., Macquarie Capital Markets Canada Ltd., Jennings Capital Inc. and Toll Cross Securities Inc. whereby CGX has agreed to issue 114,300,000 common shares at a price of $0.70 per Common Share.

The Company does not currently hold any common shares or other securities of CGX. Following completion of the offering, Pacific Rubiales will hold approximately 19% of the outstanding common shares (18% if an over-allotment option is exercised in full). In addition, the Company has agreed not to make any offers to purchase outstanding common shares or other securities of CGX for a period of 12 months without the prior consent of the board of directors of CGX.

Pacific Rubiales, a Canadian-based company and producer of natural gas and heavy crude oil, owns 100 percent of Meta Petroleum Corp., a Colombian oil operator which operates the Rubiales and Piriri oil fields in the Llanos Basin in association with Ecopetrol, S.A., the Colombian national oil company. The Company is focused on identifying opportunities primarily within the eastern Llanos Basin of Colombia as well as in other areas in Colombia and northern Peru. Pacific Rubiales has working interests in 46 blocks in Colombia, Peru and Guatemala.

The Company's common shares trade on the Toronto Stock Exchange and La Bolsa de Valores de Colombia under the ticker symbols PRE and PREC, respectively.

Cautionary Note Concerning Forward-Looking Statements

This press 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 11, 2011 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.

For further information:
Mr. Ronald Pantin
Chief Executive Officer and Director

Mr. José Francisco Arata
President and Director

Christopher LeGallais
Sr. Vice President, Investor Relations
+1 (647) 295-3700

Ms. Carolina Escobar V
Investor Relations, Colombia
+57 (1) 628-3970

SOURCE Pacific Rubiales Energy Corp.