Parex Resources has secured a 50% working interest in four blocks in Colombia’s Putumayo Basin and in the Farallones Block in the Llanos Foothills by collaborating with Ecopetrol. This strategic acquisition allows Parex to enhance oil recovery through infill drilling and facility upgrades, aiming for significant production targets in the coming years. Parex’s President, Imad Mohsen, emphasized the partnership’s role in increasing development opportunities and solidifying the company’s market position.
Parex Resources Inc., focusing on Colombian oil assets, has finalized agreements with Ecopetrol S.A. to acquire a 50 percent working interest in four strategic blocks in the Putumayo Basin and an additional interest in the Farallones Block located in the Llanos Foothills. The company aims to develop these blocks, enhancing its operational footprint and utilizing drilling technology to improve oil recovery. Under the arrangements, Parex will lead future capital activities while Ecopetrol will maintain control over existing production operations.
The four blocks in the Putumayo, namely Orito, Area Sur, Occidente, and Nororiente, signify a new core area for Parex, which has retrieved over 350 million barrels of oil through initial recovery techniques with minimal recent drilling activity. The company believes these blocks hold significant potential, stating they offer excellent opportunities for low-risk infill drilling, facility upgrades, and enhanced oil recovery (EOR). Notably, incumbent reserves of 18 million barrels have been recognized, with 10 million of these being proven reserves.
Additionally, Parex acquired a 50 percent working interest and operatorship in the Farallones Block and has committed to drilling an exploration well. This acquisition is significant as it marks Parex’s expansion into a high-potential exploration prospect, located approximately 70 kilometers from the successful Cusiana field. Planning for civil works and the anticipated drilling of the Farallones site is set to commence by 2026.
In light of these agreements, Parex aims to achieve an average production target for fiscal year 2024 of between 49,000 to 50,000 barrels of oil equivalent per day (boepd). The President and CEO of Parex, Imad Mohsen, emphasized that these agreements align with the company’s strategic focus, enhancing its development capabilities and solidifying its position in highly productive regions of Colombia.
Parex Resources Inc. operates extensively within Colombia’s oil and gas sector and has established itself as a leading independent company in the region. The recent agreements to acquire interests in both the Putumayo Basin and the Llanos Foothills underscore the company’s strategy to capitalize on proven reserves and enhance production capacities through advanced recovery techniques. The collaboration with Ecopetrol S.A. illustrates a mutually beneficial partnership aimed at optimizing oil extraction in a competitive market.
The acquisition of stakes in Putumayo and Farallones Blocks by Parex Resources represents a strategic move to bolster its presence in Colombia’s oil sector. By assuming operatorship and committing to further drilling and development, Parex aims to enhance its production capabilities and leverage the tangible potential of the acquired assets. These developments reinforce the company’s long-term growth strategy in a region rich in exploration opportunities.
Original Source: www.rigzone.com
