Parex Resources Expands Operations in Colombia with New Acquisitions
Parex Resources Inc. has acquired a 50 percent stake in four blocks in the Putumayo Basin and the Farallones Block in Colombia through agreements with Ecopetrol S.A. The deals focus on increasing recovery rates and exploration efforts with no upfront costs for the Putumayo blocks. Parex plans to commence drilling activities in 2026 and aims to achieve production targets of 49,000 to 50,000 boepd for FY 2024.
Parex Resources Inc., focused on Colombia, has finalized agreements with Ecopetrol S.A. to secure a 50 percent working interest in four blocks situated in the Putumayo Basin and the Farallones Block of the Llanos Foothills. As per the company’s announcement, these collaborations establish a new core area for Parex, where over 350 million barrels of oil have been extracted through primary recovery techniques with minimal recent drilling activity.
The blocks in question—Orito, Area Sur, Occidente, and Nororiente—are part of the Putumayo Basin agreements and entail an initial work plan commitment without any upfront acquisition costs. The company highlighted the significant potential for advancing recovery rates through low-risk drilling strategies, re-completions, and enhancements to oil recovery processes. Parex’s independent reserve evaluator, GLJ Ltd., has endorsed a proved plus probable reserves (2P) estimate of 18 million barrels.
In terms of operational roles, Parex will oversee future drilling and related activities, while Ecopetrol will manage current and future production. The newly acquired Putumayo blocks afford a low-risk development drilling inventory, projecting around 19 gross 2P future drilling locations, coupled with existing wells and re-completion prospects. Furthermore, these blocks introduce near-field exploration opportunities which enhance Parex’s portfolio significantly.
Moreover, Parex has also acquired a 50 percent working interest along with operatorship of the Farallones Block in the Llanos Foothills, contingent upon the drilling of the Farallones exploration well and an expenditure commitment of approximately $30 million within a broader $60 million capital program. This acquisition expands Parex’s foothold in the region, particularly for the Farallones exploration prospect, which lies approximately 70 kilometers from Cusiana and represents a highly regarded addition to the firm’s exploration endeavors.
Preparatory work for civil engineering initiatives is set to commence soon, with the planned drilling of Farallones expected to begin in 2026. Parex anticipates meeting its fiscal year 2024 production forecasts, which range between 49,000 to 50,000 barrels of oil equivalent per day (boepd).
Imad Mohsen, President and CEO of Parex, remarked that, “The agreements announced today align with Parex’s strategy and add significant, lower-risk development & exploitation inventory, while consolidating our position in the Llanos Foothills trend where world-class exploration potential exists.” He emphasized the strengthened partnership with Ecopetrol, expressing optimism regarding the redevelopment prospects in Putumayo and Parex’s enhanced exploration position in the Llanos Foothills—the most prolific trend in Colombia.
Parex Resources is recognized as one of Colombia’s largest independent oil and gas firms, dedicated to sustainable conventional production. The corporate headquarters is located in Calgary, Canada, while an operational office is maintained in Bogotá, Colombia.
Parex Resources Inc. is a prominent oil and gas company in Colombia, concentrating on sustainable production practices. The recent agreements with Ecopetrol S.A. mark a strategic expansion into new operational areas, particularly focusing on blocks that hold significant oil reserves. The agreement aligns with Parex’s ongoing strategy to enhance its exploration and production capabilities while mitigating risk. Given Colombia’s rich oil market and the established presence of both companies, the collaboration is poised to unlock further growth in the region’s oil sector.
In summary, Parex Resources Inc. has strengthened its position in Colombia’s oil market through strategic agreements with Ecopetrol S.A. By acquiring a 50 percent interest in crucial blocks in the Putumayo Basin and the Farallones Block, Parex anticipates substantial growth and enhanced recovery capabilities. With projected drilling activities set to boost production, the partnership reinforces Parex’s commitment to sustainable practices and operational excellence in the region.
Original Source: www.rigzone.com
