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Parex to spend up to $230M next year for development, appraisal, exploration

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Parex to spend up to $230M next year for development, appraisal, exploration

Canada-based Parex Resources Inc. announced Dec. 19 it will allocate up to $230 million for its capital expenditures next year.

The spending will be split between development, appraisal and exploration programs, including a maintenance capital program of $75 million.

The plan also targets a production of 52,000 barrels of oil equivalent per day to 54,000 boe/d, an increase of 20% from 44,250 boe/d in 2018.

Parex also expects funds from operations will amount to $450 million to $500 million with Brent crude oil at a price of $60 per barrel.

The company is currently testing the Andina-2 appraisal well, which will be a contributor to 2019 production growth. The Andina Norte exploration well is also planned to spud before the end of this year, while the CPO-11 block Anacaona exploration well was abandoned.

Parex also announced it will purchase up to 15 million, or 10%, of its common shares for cancellation as the company sees the shares do not reflect its estimated value.