WHERE TALENTAND KNOWLEDGE

MEET OPPORTUNITY

TSX: PREBVC: PRECBOVESPA: PREB

LNG Supply for Central America and the Caribbean

Durable Energy.WTC. Willemstad. March 2012

Strategic Intent

MAKING OF COLOMBIA THE NEW LNG SUPPLIER IN THE CARIBBEAN

CONTENT

• Pacific Rubiales Energy Corp – The Resource• Colombian Natural Gas• Colombian Natural Gas Regulations• EXMAR– The Transporter• “Small Scale” LNG• Export TM

• Supply Strategies• Conclusions

Pacific Rubiales EnergyThe Resource

PACIFIC RUBIALES ENERGY: LARGEST PRIVATE SECTOROIL AND GAS PRODUCER IN COLOMBIA

Significant asset portfolio with large exploration potential

46 exploration and production blocks in Colombia, Perú and Guatemala

11 fold production increase since 2007

3 fold increase in 2P reserves since 2006: current 350 mmboe (June 2011)

90% crude and 10% gas

14 Producing blocks in Colombia

Gross Production in excess of 251,000 boepd (exit 2011)

Access, through equity, participation to main pipeline systems in Colombia

Listed in the Toronto Stock Exchange (TSX:PRE) and La Bolsa de Valores de Colombia (BCV:PREC)

Mkt. Value: CN$ 6.5BN (@Jan 20, 2012)

Background

EXPLORATION & PRODUCTION ASSETS Properties

7

Significant production potential

2P gross reserves of 489 bcf (Dec 2010)

Exit production of 63.3 mmcf/d (estimated)

5 wells drilled (2006-2009) with potential to produce over 120 mmcf/d

New gas discovery in Apamate-1X well, drilled Dec´10 – Feb´11 incorporates additional 29.3 bcf net proved (undeveloped), totaling 50.2 bcf 2P @ Feb 28, 2011

Production restricted by current gas domestic market constraints

Expand production with small scale LNG export to Caribbean markets

Substantial resource upside

8 new prospects identified

Additional resource upside of over 1 tcf of OGIP, including 178 bcf of resources associated to the Apamate (1) discovery

(1) Mean Success Volume (company estimate)

LA CRECIENTEGas in place to support substantial development

One of the largest Colombia natural gas discoveries in recent years. (100% WI for PRE)

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Colombian Natural Gas

Increasing Reserves in Colombia (TCF)

9

4.74

5.41

2.90

1.16

0,00

1,00

2,00

3,00

4,00

5,00

6,00

2009 2010

Res

erve

s (T

CF)

Colombia Natural Gas 2P Reserves

Probadas

Probables

Source: Presentation of Ministry of Energy and Mines, Colombia, October 18, 2011

Proved

Probable

Supply Index

10

IA = Supply Index (years) = reserves/demand

Source: Presentation of Ministry of Energy and Mines, Colombia, October 18, 2011

N.B. Definitive Supply Index for 2011 was determined to be of 15 years by the Ministry of Mines and Energy

11

Colombian Gas Export Regulation

Colombian Natural Gas Regulation

Natural gas production, transport and commercialization are government regulated

• Gas Export ProjectsGas producers in Colombia have the right to export gas withoutprevious Government approval.

To enter into new gas export contracts, overall reserves of the countryhave to be above a minimum limit set by the Ministry of Mines andEnergy which is 8 years. After a contract is signed, this limit is nolonger applicable to that commitment.

• Bilateral negotiationsParties to gas export contracts may negotiate prices and other supplyterms without restrictions.

EXMARThe Transporter

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EXMAR Group

LPG / NH3 Offshore

Design & Engineering

BelgiboInsurance

Travel Plus

LNG Services

Shipping Shipmanagement

Design & Engineering

Floating Storage

Design & Engineering

Floating Production & Storage

Design & Engineering

ShipmanagementShipmanagement Operations & Maintenance

Shipping

Floating Storage, Liquefaction & Regas

Accommodation / Work Barge

Exmar Group

EXMAR developed in house LNG STS transfer using proven technology and is widely accepted in the industry

2005 April – May Conceptual layout and selection of suppliers

2005 November First trials run ("dry-run")

2006 August First physical transfer

2007 February First commercial, full cargo transfer

2008 June First STS with 3rd party vessel

2011 June First 3rd party LNGC outfitted with STS kit and ship staff trained

2011 December +100 Successful operations with 12.5 million m³ LNG transferred

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Ship-To-Ship Transfer

“Small Scale” LNG

“Small Scale” Value Chain

Liquefaction RegasificationMarine Transport

EXPORT TM

(Colombia)Shuttle LNG carrier FSRU (Customer)

SMALL SCALE LNG IS TAILORED ACCORDING TO END CUSTOMER NEEDS

LNG Integrated Supply Concept

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Floating liquefaction plant - 72 MMSCFD / Barge Storage:14,000 m3

Dedicated LNG carrier - 10,000 -30,000 m3

Regas Plant - 50-100 MMSCFD supply capacity / Storage 14,000 m3

Client 14,000 m3

Colombia14,000 m3

Transit10,000 m3

Storage

Dedicated 10k-30k m3 LNG Carrier

Shallow draft (5.7 m)Redundant Electric PropulsionTwo fully independent engine roomsEnvironmentally friendly (LNG regas fuel)High Maneuverability (no tugs required)Proven Technology

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Simple and fast installation scheme based on spud piles (no new built jetty construction required)

Floating Storage Regasification Unit

• Barge mounted FSRU. Deck supported / easily accessible regasificationequipment

• Regasification nominal capacity: 50 MMSCFD (2 fully redundant trains x 100%)

• Storage: 14,000 m3 (3 tanks x 4,700 m3 c/u) Length: 115 m; Breadth: 32 m; Draft: 4 m

Advantages of “Small Scale” LNG

• Smaller storages as a function of distance from production toconsumption– Lower Investment cost– Smaller safety radius– Lesser enviromental effect

• Smaller supply vessels– Lower Investment cost– Smaller safety radius– Smaller draft and lower tonnage– Jetty infrastructure cost reduced

• Conclusion– Total Cost of Ownership substantially reduced– Quicker time to market– Lower permitting risk

US$/mmbtuInternal calculations

Export TM

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500,000 tpa of LNG production14,000 m³ of LNG storage

Length overall 124 mBreadth 32 mDepth 18 mDraught 4.5 m

• Liquefaction plant– 72 MMSCFD LNG production– CO2 removal– Dehydration – Black & Veatch Prico Technology– Single Mixed Refrigerant– Gas Turbine driven Compressor

• Cargo tanks– 14,000 m³ LNG storage– Cargo tanks IMO Type C (cylindrical tanks)

• Electrical power generation– Dual fuel engines

Technical description

Export TM: technical outline

• Fully classified according to BV offshore rules

• Fatigue life of 25 years for onsite conditions. Designed for continuous operation without dry-dock

• Complement of 20 people

• Power generation by three (3) dual fuel diesel engines

• Complete EXPORTTM operated from a central control room

• Integrated automation system covering topsides, cargo plant, ballast system and machinery systems

• Development EXPORTTM based on various safety & risk studies

Supply Strategies

1. FOB sales Colombia – Sale of spot cargoes – FSU ~120,000 – 130,000 m³ + 14,000 m³ storage EXPORT

Early Start-Up

2. Small scale LNG chain – Targeting Caribbean region– Dedicated trade for customer– 14,000 m³ EXPORT + 10,000 m³ LNGC + 14,000 m³ FSRU

• Minimizing investments in LNG storage

– One stop shop for infrastructure: delivery of regasified LNG

Supply to the Caribbean markets

Conclusions

• Tailor-made solution with competitive pricing

• Low project execution risk– Experienced global team– All skills within the team– Financial strengths– Proven and existing

technologies– Proven Track-record

• One-stop shop for Natural Gas supply to the Caribbean

QUESTIONS & WRAP UP

Thank you!