Parex Resources Inc. has acquired a 50 percent working interest in several oil blocks in Colombia from Ecopetrol S.A., enhancing its presence in the Putumayo Basin and the Llanos Foothills. The agreements present significant opportunities for increased production and oil recovery through strategic development efforts. Parex plans to initiate work for exploration and drilling in the upcoming years while expecting to meet its production targets for 2024.
Parex Resources Inc., with its focus on the Colombian area, has reached agreements with Ecopetrol S.A. to acquire a 50 percent working interest in four blocks situated in the Putumayo Basin and one block in the Llanos Foothills. These strategic collaborations underpin the establishment of a new core operational area for Parex, highlighting the significant potential of the Putumayo region, which has already yielded over 350 million barrels of oil through primary recovery while underlining limited recent drilling activities.
Under the agreements covering the Orito, Area Sur, Occidente, and Nororiente Blocks of the Putumayo Basin, Parex commits to an initial work plan without any upfront acquisition costs. The company acknowledges that these blocks not only hold substantial upside potential but also afford opportunities to enhance recovery factors through low-risk infill drilling, facility upgrades, and the implementation of enhanced oil recovery (EOR) strategies. Current estimates by GLJ Ltd., Parex’s independent qualified reserve evaluator, recognize the company’s proved plus probable reserves (2P) at 18 million barrels with proven reserves (1P) at 10 million barrels.
Furthermore, Parex will take over operational control of all future drilling and investment activities, while Ecopetrol will continue to oversee existing and future production. The newly acquired blocks provide a low-risk development drilling inventory, including approximately 19 gross future locations, and present re-completion opportunities. Additionally, they bring near-field exploration potential to Parex’s portfolio.
In addition to the Putumayo Basin acquisitions, Parex has also secured a 50 percent working interest and operatorship of the Farallones Block located in the Llanos Foothills. This was accomplished through the drilling of the Farallones exploration well and committing an approximate investment of $30 million toward a $60 million gross capital program. This development extends Parex’s foothills presence and includes the highly rated Farallones exploration prospect, which is situated about 70 kilometers from Cusiana.
With plans to initiate preparatory work for civil activities and the anticipated spudding of Farallones in 2026, Parex asserts that it aims to achieve its fiscal year 2024 production targets, estimating an average output of 49,000 to 50,000 barrels of oil equivalent per day (boepd).
The article discusses recent strategic acquisitions by Parex Resources Inc. in Colombia, emphasizing their partnership with Ecopetrol S.A. The focus is on enhancing recovery and operational capacity in the Putumayo Basin and Llanos Foothills, significant oil-producing areas known for their resource potential. The collaboration aims to solidify Parex’s market position while increasing its operational efficiency through targeted drilling and exploration activities.
Parex Resources Inc. has made significant strides in enhancing its operational footprint in Colombia by acquiring a 50 percent working interest in multiple productive blocks in the Putumayo Basin and the Farallones Block in the Llanos Foothills. These agreements, characterized by low up-front costs and substantial exploration upside, align seamlessly with Parex’s strategic objectives of increasing oil production and recovery efficiency. The company’s commitment to ongoing development activities aims to reinforce its role as a major player in Colombia’s oil sector.
Original Source: www.rigzone.com
