Pacific Rubiales Energy (PRE), acting through its wholly owned subsidiary Pacific Stratus Energy Colombia Corp. (PSE), has signed a natural gas/ LNG Liquefaction, Regasification, Storage and Loading Services Agreement with Belgium based EXMAR NV. As per the agreement, EXMAR will build, operate and maintain a Floating Liquefaction Regasification & Storage Unit (FLRSU) to be located on the Colombian Caribbean coast. The Agreement grants PSE exclusive guaranteed rights to supply and liquefy up to 69.5 MMscf/d (+/- 0.5 million tns of LNG per annum) over a 15 year period, under a tolling structure. The FLRSU will have a storage capacity of 14,000m3 of LNG and will be able to accommodate alongside a 140,000m3 LNG Floating Storage Unit (FSU). Commercial Operations of the FLRSU are estimated to start in the fourth quarter of 2014. As part of the project, PSE will construct an 88km, 18in diameter pipeline from its producing La Creciente Field to the Caribbean coast with an initial design transportation capacity of 100 MMscf/d. Gas for the project will be sourced from La Creciente Field. With this project the Company will be initially targeting markets of Central America and the Caribbean, aiming to replace fuel oil and diesel currently used for power generation. The project will also open potential industrial and residential market opportunities for natural gas in these countries, while putting in place new incentives to explore and develop the large undiscovered natural gas resources in Colombia.