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Parex reports oil discovery, acquires 3 blocks in Colombia

Parex Resources Inc. on Dec. 17 said that an exploration well in Block LLA-32 in Colombia has discovered oil.

The Azogue-1 exploration well was drilled to a total depth of 12,125 feet and was tested over a 76-hour period. The well had an average production rate of 1,500 barrels of oil per day and a rate of 1,800 bbl/d during the last 24 hours of the test. Parex said it will tie the discovery to a facility that it operates nearby. Parex holds a 75% working interest in the Azogue-1 well along with an 87.5% stake in the LLA-32 block.

The company also said it acquired three blocks following the December ANH Permanent Process for the Assignment of Areas bid round. Parex acquired a 50% interest in the LLA-122 block in the Llanos Basin as well as 100% stakes in the VSM-36 block in the Upper Magdalena Basin and the VMM-46 block in the Middle Magdalena Basin.

The company is projecting its average fourth-quarter production to surpass 54,000 barrels of oil equivalent per day. The company had an average production of 53,045 boe/d in the third quarter.

In addition, Parex plans to renew its normal course issuer bid on Dec. 23, subject to approval from the Toronto Stock Exchange. The company plans to repurchase another 10%, or approximately 14 million shares, of its public float. Parex had 143 million basic outstanding shares as of Dec. 9.

Headquartered in Canada, Parex Resources focuses on exploring, developing, producing and marketing oil and natural gas in Colombia.