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Press release from CNW Group

Pacific Rubiales announces credit agency upgrades

Monday, November 28, 2011

Pacific Rubiales announces credit agency upgrades07:00 EST Monday, November 28, 2011TORONTO, Nov. 28, 2011 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC) is pleased to announce that two credit rating agencies have recently upgraded the Company's credit rating.On November 21, 2011, Moody's Investors Service upgraded Pacific Rubiales Energy Corp.'s (PRE) Corporate Family Rating to Ba2 from Ba3. The rating outlook is stable. In summarizing, Moody's noted: "The upgrade reflects the company's progress in growing production from its core heavy oil concessions in the Rubiales/Piriri and Quifa fields and prospects for continued strong cash margins and cash flows from its predominantly heavy oil production base. In addition, PRE will realize modest de-leveraging benefit from its pending subordinated debenture conversion."On November 3, 2011, Fitch Ratings upgraded Pacific Rubiales Energy Corp.'s foreign and local currency Issuer Default Ratings (IDRs) to 'BB' from 'BB-'. The rating action affects USD450 million of senior unsecured notes with final maturity in 2016. The Rating Outlook is Stable. In summarizing, Fitch noted: "The rating action reflects the company's proven track record of increasing production while maintaining adequate reserve replacement ratios. The rating action also takes into consideration the company's lower business risk as a result of the completion of key infrastructure projects. The company has also made significant advances to increase its production diversification and extend its production life-horizon. Pacific Rubiales' ratings are supported by the company's leadership position as the largest independent oil and gas player in Colombia and its strong management with recognized expertise in heavy oil exploration and production."Ronald Pantin, Chief Executive Officer of the Company, commented: "This recent upgrade by two of the Company's credit rating agencies provides a strong endorsement of the Company's increasing financial strength and its future as a leading diversified Latin American oil and gas producer."In an earlier announcement on July 5, 2011, the Company's other rating agency, Standard & Poors upgraded the Company's credit rating to "BB" from "BB-", citing: "On improved financial profile, the stable outlook reflects our view that Pacific Rubiales will continue to post a strong financial performance and that the Company's good positioning will allow it to continue executing its growth strategies."All three rating agency reports can be viewed in full on the Company's website at: www.pacificrubiales.com.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, and 100 percent of Pacific Stratus Energy Corp. which operates the La Creciente natural gas field. 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 StatementsThis 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 10, 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. Christopher (Chris) LeGallais SR VP Investor Relations (647) 295-3700 Ms. Carolina Escobar V Manager Investor Relations + (57 1) 628-3970 Ms. Belinda Labatte (647) 428-7035