Parex Resources Inc. has secured a 50 percent working interest in four oil blocks in Colombia’s Putumayo Basin and the Farallones Block, partnering with Ecopetrol S.A. This acquisition, involving no upfront costs and significant future potential, positions Parex to enhance oil recovery through targeted drilling and technological upgrades, while planning new developments starting in 2026.
Parex Resources Inc., which focuses on operations in Colombia, has reached agreements with Ecopetrol S.A. to acquire a 50 percent working interest in four blocks situated in the Putumayo Basin and the Farallones Block in the Llanos Foothills. This strategic collaboration is intended to develop a new core area for Parex, which has already seen the recovery of over 350 million barrels of oil through initial recovery methods in these regions.
The agreements include the Orito, Area Sur, Occidente, and Nororiente Blocks in the Putumayo Basin, with no upfront acquisition costs, alongside an initial work commitment. Parex emphasizes the potential for substantial upside and enhanced recovery rates through low-risk drilling and facility upgrades in these fields. The independent evaluation by GLJ Ltd. cites potential proved plus probable reserves of 18 million barrels for Parex.
As part of this deal, Parex will take over operations for all future drilling activities, while Ecopetrol will maintain operational control over existing production. The Putumayo Blocks are believed to offer a low-risk development inventory, which includes around 19 future drilling locations. Furthermore, these acquisitions will bring about additional exploration opportunities that are significant for Parex’s portfolio.
In addition, Parex acquired a 50 percent working interest and operatorship in the Farallones Block, with a commitment to drill an exploration well as part of a $30 million investment in a $60 million gross capital program. The acquisition strengthens Parex’s position in the Llanos Foothills and highlights the Farallones Block as one of their most promising exploration prospects.
Preparatory work for civil operations is anticipated to start for the eventual drilling of Farallones in 2026. Additionally, Parex aims to meet its production target for fiscal year 2024, forecasting an output of 49,000 to 50,000 barrels of oil equivalent per day.
Imad Mohsen, President and CEO of Parex, remarked on the strategic nature of these agreements and the longstanding partnership with Ecopetrol, expressing excitement about the redevelopment potential in Putumayo and the exploration advancements in the Llanos Foothills. Parex, recognized as one of Colombia’s largest independent oil and gas companies, operates with a focus on sustainable development and production practices, with headquarters in Calgary, Canada and an operational base in Bogotá, Colombia.
Parex Resources Inc. is a leading independent oil and gas entity in Colombia, actively engaged in the exploration and production of hydrocarbons. Colombia’s oil-rich regions, particularly the Putumayo Basin and Llanos Foothills, hold significant untapped reserves and are gradually being developed for sustainable production. The partnership between Parex and Ecopetrol, Colombia’s state-owned oil company, underlines a strategic alliance aimed at enhancing oil recovery and development in these regions, which is expected to yield substantial economic benefits. The acquisition of these blocks marks an important expansion for Parex, enhancing their portfolio with lower-risk exploration and development prospects, thus contributing to the overall stability and profitability of their operations in Colombia.
In summary, Parex Resources Inc. has strategically acquired a 50 percent interest in multiple oil blocks in Colombia, signaling a commitment to expanding its operations and enhancing its oil recovery capabilities. The combination of established production fields in Putumayo and the promising potential of the Farallones exploration block positions Parex favorably within a competitive landscape. This move not only strengthens their collaboration with Ecopetrol but also reflects a proactive approach towards sustainable development and efficient resource management in Colombia’s oil sector.
Original Source: www.rigzone.com
