Parex signs agreements with Ecopetrol to earn stake in Colombia’s De Mares and Playon blocks

Parex Resources has signed two agreements with Ecopetrol to operate and earn a 50% working interest in Colombia’s De Mares and Playon blocks in the Middle Magdalena Basin.

The company agreed to complete a work-over of the Coyote-1 well for $3m to earn a 50% working interest in the De Mares block.

Based on interpretation of 200km of 2D seismic, the exploration well was drilled in 2012 and encountered oil bearing sands in the Esmeraldas / La Paz formation at about 6,700ft to 7,200ft water depth.

There is currently no oil production from the block.

The Playon block is located in the Middle Magdalena basin north of the La Cira-Infantas, as well as Aguas Blancas oil fields.

Parex plans to fund 100% of the estimated drilling costs of $7m for the Boranda-1 exploration well, in order to earn a 50% working interest and operatorship of this block.

The well is set to explore the continuity of a stratigraphic play that was identified by offsetting discoveries drilled to the north, as well as south of the Playon block.

Ecopetrol built the Boranda-1 drilling pad on the basis of interpretation of 3-D seismic.

During the first quarter of 2016, Parex expects production to average about 28,900 barrels of oil equivalent per day.

The drilling programme for 2016 is planned to commence in May 2016 on the Llanos Basin blocks Cabrestero and LLA-34.