TORONTO, Jan. 2, 2013 /PRNewswire/ – Pacific Rubiales Energy Corp. (TSX: PRE;
BVC: PREC; BOVESPA: PREB) is pleased to announce today that it closed
the acquisition of C&C Energia Ltd. (“C&C Energia”) by way of a plan of arrangement (the “Arrangement“). Pursuant to the Arrangement, a new exploration company, Platino
Energy Corp. (TSXV: PZE) (“Platino“) was formed.

With the completion of the Arrangement, Pacific Rubiales has acquired
all of the issued and outstanding shares of C&C Energia and each share
of C&C Energia has been exchanged for 0.3528 of a common share of
Pacific Rubiales (approximately 22.8 million Pacific Rubiales common
shares), Cdn.$0.001 cash and one common share of Platino. Pacific
Rubiales has retained a 5% equity interest in Platino.

Platino acquired C&C Energia’s interests in the Coati, Andaquies, Morpho
and Putumayo-8 blocks in Colombia and has also received cash from C&C
Energia in the amount of approximately U.S.$88.5 million.

Ronald Pantin, Chief Executive Officer of the Company, commented:

“With this acquisition, Pacific Rubiales adds four new development
blocks to its Colombian production portfolio (Cravoviejo, Cachicamo,
Pájaro Pinto, and Llanos-19 blocks), which are all in the prolific
onshore Llanos basin and in close proximity to the Company’s existing
heavy oil production and infrastructure.

“In addition, the Company is pleased to announce that the President of
Peru has signed the Supreme Decree authorizing the ammendment
recognizing Pacific Rubiales’ acquisition of a 49% participating
interest in the offshore Block Z-1 in Peru.

“I am particularly pleased that we were able to close both acquisitions
prior to year-end, which will allow the booking of reserves associated
with these properties in our 2012 year-end reserves report. These
assets add light oil production and reserves at attractive and
accretive metrics and whose value can be increased through accelerated
activity, transportation and marketing synergies in the case of the C&C
assets, and development drilling in the case of Block Z-1.”

“I am also able to report that the Company’s 2012 exit production is
expected to be in the range of 290 to 295 Mboe/d gross total field or
approximately 115 Mboe/d net after royalty (excluding the C&C Energia
volumes), approximately 16% above 2011 exit production, and surpassing
our target of 280 to 285 Mboe/d (about 113 Mboe/d net after royalty).”

Pacific Rubiales’ address is 333 Bay Street, Suite 1100, Toronto,
Ontario, M5H 2R2. To obtain a copy of the report filed with the
Canadian securities regulatory authorities relating to the acquisition
of all of the issued and outstanding shares of C&C Energia, please
contact the Company’s Deputy General Counsel and Secretary, Michael
Galego at (416) 362-7735 x234. Prior to the Arrangement, Pacific
Rubiales did not hold any shares of C&C Energia.

Pacific Rubiales, a Canadian company and producer of natural gas and
crude oil, owns 100% of Meta Petroleum Corp., which operates the
Rubiales, Piriri and Quifa heavy oil fields in the Llanos Basin, and
100% of Pacific Stratus Energy Colombia Corp., which operates the La
Creciente natural gas field. Pacific Rubiales has also acquired 100%
of PetroMagdalena Energy Corp., which owns light oil assets in
Colombia, and 100% of C&C Energia Ltd., which owns light oil assets in
the Llanos Basin. In addition, the Company has a diversified portfolio
of assets beyond Colombia, which includes producing and exploration
assets in Peru, Guatemala, Brazil, Guyana and Papua New Guinea.

The Company’s common shares trade on the Toronto Stock Exchange and La
Bolsa de Valores de Colombia and as Brazilian Depositary Receipts on
Brazil’s Bolsa de Valores Mercadorias e Futuros under the ticker
symbols PRE, PREC, and PREB, respectively.

Advisories

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 Pacific Rubiales believes, expects or
anticipates will or may occur in the future are forward-looking
statements. In particular, this press release contains forward
looking-looking statements in respect to the anticipated benefits of
the Arrangement.

By their nature, forward-looking statements are subject to a number of
risks, uncertainties and assumptions, which could cause actual results
or other expectations to differ materially from those anticipated.
Certain of these risks are set out in more detail in the Company’s
annual information form dated March 14, 2012 which has been filed on
SEDAR and can be accessed at www.sedar.com.

Factors that could cause actual results or events to differ materially
from current expectations include, among other things: financial risk
of marketing reserves at an acceptable price given market conditions;
volatility in market prices for oil and natural gas; delays in business
operations, pipeline restrictions, blowouts; the risk of carrying out
operations with minimal environmental impact; industry conditions
including changes in laws and regulations including the adoption of new
environmental laws and regulations and changes in how they are
interpreted and enforced; uncertainties associated with partner plans
and approvals; operational matters related to non-operated properties;
increased competition for, among other things, capital, acquisitions of
reserves and undeveloped lands; competition for and availability of
qualified personnel or management; incorrect assessments of the value
of acquisitions and exploration and development programs; unexpected
geological, technical, drilling, construction and processing problems;
availability of insurance; fluctuations in foreign exchange and
interest rates; stock market volatility; failure to realize the
anticipated benefits of acquisitions; general economic, market and
business conditions; uncertainties associated with regulatory
approvals; uncertainty of government policy changes; uncertainties
associated with credit facilities and counterparty credit risk; and
changes in income tax laws, tax laws, royalty rates and incentive
programs relating to the oil and gas industry.

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,
Pacific Rubiales 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 Pacific Rubiales
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.

Language

This news release was prepared in the English language and subsequently
translated into Spanish and Portuguese. In the case of any differences
between the English version and its translated counterparts, the
English document should be treated as the governing version.

Boe Conversion

Boe may be misleading, particularly if used in isolation. A boe
conversion ratio of 5.7 Mcf: 1 bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. The estimated values
disclosed in this news release do not represent fair market value. The
estimates of reserves and future net revenue for individual properties
may not reflect the same confidence level as estimates of reserves and
future net revenue for all properties, due to the effects of
aggregation.

Definitions

Bcf	Billion cubic feet.
Bcfe	Billion cubic feet of natural gas equivalent.
bbl	Barrel of oil.
bbl/d	Barrel of oil per day.
boe	Barrel of oil equivalent. Boe’s may be misleading, particularly if used in isolation. The Colombian standard is a boe conversion ratio of 5.7 Mcf:1 bbl and is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
boe/d	Barrel of oil equivalent per day.
Mbbl	Thousand barrels.
Mboe	Thousand barrels of oil equivalent.
MMbbl	Million barrels.
MMboe	Million barrels of oil equivalent.
Mcf	Thousand cubic feet.
WTI	West Texas Intermediate Crude Oil.

SOURCE Pacific Rubiales Energy Corp.