TORONTO, Oct. 28 /CNW/ -- Pacific Rubiales Energy Corp. (TSX: PRE) is pleased to announce its proposal in connection with its publicly-traded common share purchase warrants (the "Warrants") to offer a cash payment of C$1.50 per Warrant as an incentive for holders of the Warrants to exercise their Warrants during a 30-day early exercise period (the "Early Exercise Period") expected to commence on or about December 14, 2009 and end on or about January 13, 2010.

If all Warrants are exercised during the Early Exercise Period:

-   Pacific Rubiales will receive gross proceeds of approximately
C$345.6 million on or before January 13, 2010 (the "Early Exercise
Expiry Date");
-   Pacific Rubiales will issue approximately 44.3 million common shares;
and
-   Pacific Rubiales will pay an aggregate cash incentive of
approximately C$66.5 million as an incentive for the early exercise
of the Warrants.

The proceeds of the early exercise of the Warrants will assist the company with its planned capital needs and simplify the company's capital structure. The proceeds of the early exercise of the Warrants are intended to be used by Pacific Rubiales to fund a portion of its 2010 capital expenditure budget, and for general corporate purposes, including future growth opportunities and for potential repayment of outstanding debt.

The details of the Warrants are set out in the table below.