Parex announces Colombia oil discovery

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Monday, September 10, 2018

Parex Resources has discovered crude oil at its Andina-1 well in eastern Colombia, the Canadian company said on Monday.

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A primary Guadalupe formation reservoir was encountered at a depth of 16,700ft (5,090m), as drilling reached a total depth of 17,500ft, according to a Parex operations update.

"Logging results from the Andina-1 exploration well indicate potential hydrocarbon bearing zones in the Mirador, Guadalupe and Une formations," the company said.

Andina-1 forms part of the Llanos basin's Capachos block, which Parex operates with a 50% stake alongside Colombia's state-run Ecopetrol.

Parex said that logs showed the presence of a "high-quality reservoir" similar to a light oil discovery at the Capachos-2 well.

Meanwhile Parex said it is in the process of commissioning a facility that will convert up to 10Mf3/d of rich gas from the Capachos operations into liquids and lean gas.

"The lean gas will be sold to a third party to generate power on site for sales into the local power grid," Parex said, adding that the plant will also be used to process associated gas from multiple Capachos wells.

In addition, the company is preparing initial operational plans for the Andina Norte-1 exploration well, which will appraise an adjacent undrilled prospect on the same trend as Andina-1.

Parex said its third-quarter production has averaged 44,200boe/d to date, up from last year's Q3 mean of 36,195boe/d. It expects Q4 output "to exceed 48,000boe/d".

In related news, Colombia-focused Interoil reported August production of 1,562boe/d, down from 1,667boe/d in July.