Pacific instructed to suspend operations at Quifa Block in Colombia

TORONTO -- Pacific Exploration & Production Corp. has announced that the company was formally notified of the Colombian Constitutional Court's decision instructing the company to suspend operations within two km of the border of an indigenous community known as "Vencedor Piriri," encompassing a portion of Quifa Block. The community is located in the north-west corner of the Quifa Block, in the Meta Department of Colombia. Operations in this area are to be suspended until a prior consultation process is conducted with the indigenous community.

Pacific is in the process of an orderly suspension of operations within this two km border area, which impacts water injection at the Pad-3 location. The company has implemented contingency plans so as to not materially affect the production from the Quifa Block. The company does not expect a material decline in aggregate production during the suspension period, which will last for approximately 10 weeks.

In the past, the company has demonstrated that it had effectively met consultation process requirements in locations identified by the Ministry of Interior, pursuant to Colombian law. However, the Constitutional Court ruled that it should conduct a prior consultation process in an area that to the best of the Company's knowledge does not have the presence of indigenous community, alleging indirect damages in the two-km border area.

The company has developed a plan that will be filed with the applicable Colombia authorities within the next few days, and will proceed to fulfill the mandate of prior consultation in the area in question. The company has also contacted the Ministry of Interior to immediately start the prior consultation process.