PACIFIC RUBIALES ANNOUNCES THE START UP OF OPERATIONS OF CPF-2 AND CPF QUIFA
November 19, 2010 at 09:22 AM EST
TORONTO, Nov. 19 /PRNewswire/ - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC) and Ecopetrol (BVC: ECOPETROL; NYSE: EC; BVL: EC; TSX: ECP) announced today the beginning of operations of the CPF-2 crude treatment facility at the Rubiales field, and of the CPF treatment facility at the Quifa field, allowing for a substantial increase in crude processing at these two fields.
The start-up of operations at the Rubiales CPF-2 facility will result in an increase in crude treatment capacity of 70,000 barrels, allowing the field to reach a gross production of 170,000 barrels per day by the end of the year, and with enough flexibility to allow for further growth from the field in 2011.
The opening of the new CPF plant at Quifa will allow for the processing of 30,000 barrels per day of crude oil. The Quifa facility is the first step in a development plan that calls for production of 60,000 barrels per day by year-end 2011.
The production potential necessary to reach the targeted levels for the year 2010 has already been developed at the well head, and will start being progressively brought on line.
The opening of the two facilities is important as it will help increase the country's crude extraction by some 100,000 barrels a day, or more than 12% of national production, confirming that the Meta province of Colombia has one of the highest levels of growth today.
The increased crude production at the Rubiales and Quifa fields will be transported through the Los Llanos oil pipeline (ODL), which went into operation last year and which will raise its capacity from 160,000 barrels per day to 220,000 barrels per day by the end of 2010, and to 340,000 barrels per day in the first quarter of 2011, in synchrony with the growth in production.
Ronald Pantin, Chief Executive Officer of the Company commented: "These installations are important milestones in the ongoing development of the Rubiales and Quifa fields, paving the road towards reaching our aggressive mid-term goal of 500,000 barrels a day of gross production."
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 a current net production of approximately at 70,000 barrels of oil equivalent per day, after royalties, with working interests in 40 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.
Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 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.
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 12, 2010 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.
SOURCE Pacific Rubiales Energy Corp.