Petro Rubiales Achieves Record Oil Production in Colombia

Petro Rubiales Energy Corporation has increased the production of the Rubiales Field to a new record level of 25,046 bbl/d.

This record production is a result of the continuous operational improvement that Petro Rubiales wholly owned subsidiary, Meta Petroleum Ltd. (MPL), has carried out since new senior management took control of the Rubiales Field, located in the Llanos basin in the Republic of Colombia.

Since taking control of the Rubiales Field in July, gross production has increased from 18,300 bbl/d (4,739 net) to approximately 25,046 (9,095 net) bbl/d (12.5 degrees API). This performance reaffirms Petro Rubiales strategic goal of achieving its projected net production of approximately 15,000 bbl/d in 2008 and approximately 45,000 bbl/d in 2009.

Petro Rubiales has also completed 30 percent of its appraisal drilling program at the Rubiales field, completing three of the 10 appraisal wells planned; the fourth appraisal well is currently being drilled. Preliminary results have confirmed the geological model upon which Petro Rubiales is basing its production expansion plans.

The evaluation of the three completed wells indicates that the reservoir extends further toward the southeast than originally thought. The extension allows the operator to be optimistic about the results that the reserves certification study, which is now under way in coordination with Houston-based RPS Scotia, formerly known as Scotia Group Inc., may yield.

It is anticipated that the results from these three wells will enable 85 million barrels of oil to be reclassified as proven reserves. The appraisal drilling program will be completed at the end of February 2008.

In November, Petro Rubiales also implemented a new transport and commercial scheme that has allowed it to increase its realized netback from US$23.40 per barrel to US$47.25 per barrel for a volume of approximately 3,000 barrels per day of Rubiales crude. Petro Rubiales expects that when the infrastructure at the Guaduas tank farm in central Colombia is completed, the facilities could handle up to 20,000 barrels per day of diluted crude (completion of the facility is expected in the first quarter of 2008).

The combination of doubling the net production and doubling the netback since inception has placed Petro Rubiales in a strong financial position for further growth and development within Colombia.

Petro Rubiales now owns 100 percent of Meta Petroleum Limited, a Colombian oil and gas company that operates the Rubiales and Piriri oil fields in the Llanos basin in association with Ecopetrol, the Colombian national oil company. Petro Rubiales is focused on identifying opportunities primarily within the eastern Llanos basin of Colombia.