Pacific Rubiales has announced the release of its audited consolidated financial results for the year ended December 31, 2008, together with its Management's Discussion and Analysis, Annual Information Form and its 2008 Statement of Reserves, Form 51-101F1.
2008 Results Summary (Figures in US$ unless otherwise stated)
The company completed the acquisitions of Pacific Stratus Energy Corp. and Kappa Energy Holdings Ltd.
On March 3 2009, the company announced the independently certified Statement of Reserves Data and Other Oil and Gas Information for all of the Company's assets. The gross working interest proved plus probable (2P) reserves are estimated to be 247 mmbbl of oil
During 2008, the company was the most dynamic E&P operating in Colombia as it demonstrated the highest growth in operated production of any company in the region, totaling an increase of 36,571 boe/d from January to December from all the fields it operates, both oil and gas. This growth in operated production came as a result of acquisitions (8,673 boe/d) and development of assets (27,898 boe/d).
In the course of the year the company drilled 12 exploratory wells and acquired 355 km of 2D seismic and 290 km(2) of 3D seismic work
On January 2, 2008, the company announced that it had signed a memorandum of understanding with Ecopetrol S.A. for the construction and operation of the Rubiales-Monterrey Pipeline, through a special purpose vehicle, Oleoducto de los Llanos Orientales ("ODL"), owned 65% by Ecopetrol and 35% by Pacific Rubiales. On completion, the 235 km pipeline will have a capacity of 170.000 bbl/d and will connect the Rubiales oil field to Covenas, the export terminal for the Colombian pipeline system. On March 12, 2009, the company
In April 2008 a new blending facility at Guaduas (PF2) was put into operation, allowing the company to export 100% of its share of the
The company consolidated its position as an important player in the commercialization of natural gas in the Colombian domestic market,
On August 28, 2008 the company issued $224.9 million (C$240 million) of convertible secured subordinated debentures due August 29, 2013 and convertible into common shares of the company at C$13.00 per share. The debentures bear interest at 8% annually and are payable on June 30 and December 31. The company used a portion of the net proceeds to pay for the acquisition of Kappa.
Revenues increased over the previous year to $579.1 million from $80.4 million in 2007 primarily due to increased production, higher
EBITDA amounted to $300.8 million, which represented a seven-fold increase to the 2007 figure of $45.4 million. EBITDA from
Capital expenditures in 2008 totaled $296.3 million of which $71.7 million went into exploration activities; $134 million was invested in the expansion and construction of infrastructure and $90.6 million in production drilling activities.
On May 9, 2008, the company consolidated its common shares on a 1:6 basis by issuing one common share for every six common shares outstanding.
During 2008, the company reinforced the internal audit function pursuant to National Instrument 52-109. As a result of the evaluation
In completing the 2008 consolidated financial statements and as part of the internal audit function identified above, the company determined that net income was overstated in the previous year, as a result of accounting for a special tax deduction associated with certain development expenditures incurred in Colombia. The accounting for this matter affected the Company's annual 2007 audited consolidated financial statements and each of the 2008 interim consolidated financial statements previously reported and affects only non-cash items. As a result, the Company's 2007 annual consolidated financial statements for the year ended December 31, 2007, and each of the 2008 interim financial statements have been restated to correct for this accounting matter.
On March 31, 2009, the company announced it received credit approvals for commitments totaling US $100 million under a previously announced senior secured revolving credit facility of up to US $250 million, consisting of US $50 million commitments from each of BNP Paribas and Davivienda Financial Group, lead arrangers for the facility. This commitment ensures that the capital expenditure program for the company is fully funded at an average WTI price of 45 US$ per barrel.
Ronald Pantin, Chief Executive Officer, commented, "I am pleased that we have recorded outstanding financial results in the first year that Pacific Rubiales is operating as a fully integrated company, with a strong and growing diversified portfolio of oil and gas assets. In one year, we increased revenues from $80 million to $579 million, largely driven from a rapidly growing production profile. The company has clearly shown its ability to leverage the talents of its combined workforce toward clear and focused objectives."
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