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Pacific Rubiales Dilutes Interest In Two Wells Of Buganviles Block Of Columbia

(RTTNews) - Pacific Rubiales Energy Corp. (PRE.TO) announced Friday the farmout of additional participating interest in two new exploratory wells in Buganviles Block of Columbia to Petrodorado South America S.A. Pacific Rubiales said its exploratory commitments would reduce by US$8.94 million for the next two wells, while retaining operatorship.

The agreement with the wholly owned subsidiary of Petrodorado Energy Ltd (PDQ.V) involves additional participating interest in the Visure and Tuqueque Prospects by covering 100% of the company's costs in exchange for a 29.5% and 25% additional participating interest.

The new agreement increases Petrodorado's participating interest in the two wells to 49.5% and 45% respectively, consequent to the prior farmout by Pacific Rubiales on November 25, 2010.

At Visure, drilling of the Visure-1X exploration well is expected to commence on September 13, 2010. At Tuqueque, drilling of the Tuqueque-1X exploration well is expected to start on September 29, 2010 subject to governmental authorizations.

Ronald Pantin, chief executive officer said,"The additional farming out of our Buganviles exploratory portfolio will permit the Company to focus its investments on its producing assets and low risk exploration. This process strengthens our ability to pursue the growth strategy which the Company has envisioned for 2011 and beyond."

Pacific Rubiales, based in Canada 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.

PRE.TO last traded on the Toronto Stock Exchange at C$24.57. Over the past year, the stock has traded in a range of C$11.62 - C$25.88.

PDQ.V last traded on the TSX Venture Exchange at C$0.36. Over the past year, the stock has traded in a range of C$0.10 - C$0.60.