Parex Resources Inc. has secured a 50 percent working interest in four blocks in the Putumayo Basin and the Farallones Block, significantly enhancing its operational area and oil production potential. The collaboration with Ecopetrol S.A. includes both near-term developments and longer-term exploration prospects. Parex aims for substantial production growth while focusing on efficient recovery methods and sustainable practices in Colombia’s oil sector.
Colombia-focused Parex Resources Inc. has finalized agreements with Ecopetrol S.A. to acquire a 50 percent working interest in four blocks in the Putumayo Basin and the Farallones Block in the Llanos Foothills of Colombia. According to the company, this collaboration establishes a new core area, with over 350 million barrels of oil having been historically recovered, primarily through basic recovery techniques with minimal recent drilling activity. The collaboration agreements include the Orito, Area Sur, Occidente, and Nororiente Blocks, which Parex considers to have substantial potential for increased recovery through various methods such as low-risk infill drilling and enhanced oil recovery (EOR).
Parex’s independent qualified reserve evaluator has identified proved plus probable reserves (2P) of 18 million barrels. While Parex will take over all future drilling operations and capital projects, Ecopetrol will continue to manage current and future production. The current proven reserves (1P) stand at 10 million barrels. The acquired Putumayo blocks offer a low-risk environment for development drilling, with approximately 19 future locations and opportunities for re-completion. Additionally, these blocks enhance Parex’s portfolio by providing near-field exploration prospects.
Furthermore, Parex has secured a 50 percent working interest and operatorship in the Farallones Block, committing to drill the Farallones exploration well and cover carry capital of approximately $30 million as part of a total gross capital expenditure program of about $60 million. This acquisition fortifies Parex’s position in the Llanos Foothills and includes a high-value exploration prospect located 70 kilometers from Cusiana. Preparations for initial civil works activities and the anticipated commencement of drilling in 2026 are already underway.
The company anticipates achieving an average production target of 49,000 to 50,000 barrels of oil equivalent per day in fiscal year 2024. “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,” stated Parex President and CEO Imad Mohsen. He expressed enthusiasm about the redevelopment opportunities in the Putumayo and enhanced exploration position in the Llanos Foothills, which is recognized for its prolific output in Colombia.
Based in Calgary, Canada, with an operational office in Bogotá, Colombia, Parex Resources is known as one of the largest independent oil and gas entities in Colombia, focusing on sustainable conventional production.
The recent agreements between Parex Resources and Ecopetrol S.A. signify a strategic expansion for Parex in Colombia’s lucrative oil sector. The Putumayo Basin and the Llanos Foothills are known regions for oil production, with existing infrastructure and significant recovered reserves. By acquiring stakes in these blocks, Parex can leverage its operational capabilities to enhance production and explore further exploration opportunities, demonstrating the company’s commitment to sustainable and profitable growth in the energy market. This partnership not only affirms Paraex’s strategic objectives but also strengthens its position in competitive oil exploration and production landscapes.
In conclusion, Parex Resources Inc.’s acquisition of a 50 percent working interest in critical oil blocks from Ecopetrol S.A. marks a significant advance in the company’s portfolio strategy in Colombia. With substantial proven reserves and low-risk developmental opportunities, these agreements promise to bolster Parex’s operational capabilities and production targets. Furthermore, Parex’s ongoing commitment to exploring new potential in the Llanos Foothills reinforces its position as a major player in Colombia’s oil industry, showcasing its dedication to growth and sustainability.
Original Source: www.rigzone.com
