Parex Resources Expands Colombian Presence with Key Asset Acquisitions

Parex Resources Inc. has acquired a 50 percent working interest in four blocks in the Putumayo Basin and the Farallones Block in Colombia from Ecopetrol S.A. These agreements allow Parex to expand its operations in regions with significant oil recovery potential, while the company plans to meet its FY 2024 production targets of 49,000 to 50,000 boepd. President and CEO Imad Mohsen reaffirmed the importance of these acquisitions for Parex’s growth and partnership with Ecopetrol.

Parex Resources Inc., a prominent entity in the Colombian oil and gas sector, has formalized agreements with Ecopetrol S.A. to acquire a 50 percent working interest in four blocks within the Putumayo Basin and the Farallones Block in the Llanos Foothills. The collaborations in the Putumayo area signify a new core operational zone for Parex, which reported that over 350 million barrels of oil have been recovered through primary recovery techniques, albeit with limited recent drilling initiatives. The agreements pertain to the Orito, Area Sur, Occidente, and Nororiente Blocks, accompanied by an initial work commitment but without any upfront acquisition costs.

Further highlighting the potential of the Putumayo Blocks, Parex noted a significant opportunity for improved recovery factors through low-risk infill drilling and enhanced oil recovery strategies. The company’s independent reserve evaluator, GLJ Ltd., has ascribed proved plus probable reserves (2P) of 18 million barrels, with proven reserves (1P) recorded at 10 million barrels. Parex will undertake control over all future drilling and capital expenditures, although Ecopetrol will maintain operatorship for current production.

Additionally, Parex has secured a 50 percent working interest and operatorship in the Farallones Block by committing to drill an exploration well and agree to a capital carry for approximately $30 million, under a gross capital program estimated at $60 million. This acquisition will bolster Parex’s footholds in the region and includes one of its highest-ranking exploration prospects, facilitating initial civil preparation works expected to begin leading up to the well spud in 2026. Parex aims to meet its fiscal year 2024 production target, estimating an average output of 49,000 to 50,000 barrels of oil equivalent per day (boepd).

Parex President and CEO Imad Mohsen stated that these agreements are strategically aligned with Parex’s objectives while taking advantage of low-risk development and enhancement opportunities in Colombia’s most prolific oil trend. He expressed his enthusiasm for the re-development prospects in the Putumayo region and underscored the continued strengthening of the partnership between Parex and Ecopetrol.

With its headquarters in Calgary, Canada, and operating offices in Bogotá, Parex Resources is poised to expand its influence as one of Colombia’s leading independent oil producers known for its commitment to sustainable conventional production.

The acquisition of stakes in Colombian oil blocks is a strategic move for Parex Resources, aiming to enhance its operational capabilities and resource portfolio. The Putumayo Basin and Llanos Foothills are recognized for significant oil reserves and production potential, making them critical areas for exploration and development in Colombia. By strengthening its partnership with Ecopetrol through these agreements, Parex aims to leverage existing infrastructure while increasing its production capacity and recovery strategies.

In summary, Parex Resources Inc. is expanding its operational footprint in Colombia through strategic agreements with Ecopetrol S.A., securing a 50 percent working interest in significant oil blocks. These actions not only enhance Parex’s production capabilities but also solidify its position in two of Colombia’s key oil-producing regions. With plans for future development and exploration, the company’s growth trajectory appears promising, aligning with its commitment to sustainable production practices.

Original Source: www.rigzone.com