Parex reports Colombia reserves uptick, readies production ramp-up

Parex Resources reported a 45% increase in proved plus probable (2P) reserves in 2017 after successful drilling campaigns in Colombia's Llanos and Magdalena basins.

An independent assessment by GLJ Petroleum Consultants showed 2P reserves hit 162Mboe on December 31, up from 112Mboe a year earlier, the Canadian company said in a statement.

Proved (1P) reserves jumped 50% over the period to 96Mboe.

Parex cited positive exploration results on the Cabrestero, Capachos and LLA-34 blocks for the increase.

"With our working capital of approximately US$160mn, no debt and a reserve life index exceeding 11 years, we have multiple opportunities for continued growth," CEO Dave Taylor said.

OPERATIONS

Meanwhile Parex said it suspended drilling on the Capachos block due to security concerns.

"With the support of the local communities and federal authorities, the company does not anticipate a long-term suspension of the project," the statement read. "We continue to advance the engineering and procurement of the gas processing facility that would provide gross oil production capacity of 10,000b/d by Q4 2018."

On the Cabrestero block, the Totoro-1 exploration well is being cased for testing after reaching a target depth while the Bacano-6 well was abandoned, according to Parex

In the Llanos basin, the company said it is delineating the Tigana Norte area with Tigana Norte-6 and has spudded the Chachalaca Sur-1 well.

Parex said its estimate for 2017 production was 35,540boe/d and forecast 2018 output above 40,000boe/d.

The company is scheduled to publish its 2017 full-year results on March 5.