Parex Resources Inc. ("Parex" or the "Company") (TSX: PXT), a company focused on Colombian oil and gas exploration and production, is pleased to announce unaudited financial and operating results for the three months ("First Quarter" or "Q1") ended March 31, 2017. All amounts herein are in United States dollars ("USD") unless otherwise stated.
Please note Parex will not hold a conference call to discuss First Quarter results. In lieu, the Company invites stakeholders to attend the Annual General Meeting ("AGM") on Thursday, May 11, 2017 beginning at 9:30 am Mountain Time.
Q1 2017 Financial and Operational Highlights
Parex continues to maintain a strong financial position; the Company held no debt, an undrawn bank credit facility and $185 million of cash as at March 31, 2017.
As previously released, assuming a Brent oil price of $50/bbl, we expect our 2017 capital expenditures budget and funds flow from operations to be approximately $200-$225 million and production of 34,000-36,000 boe/d.
Our 2017 drilling program is more heavily weighted to the second half of 2017 as we commence our appraisal and exploration drilling programs in the Capachos Block and the Middle Magdalena Basin. Overall, we expect to drill over 40 wells in 2017 and we are not dependent on further exploration success to achieve our annual production target.
Production: We expect Q2 2017 production to average 34,000 boe/d for an overall increase of approximately 10% for the first half of the year. Prior to the end of Q2 2017, we expect to complete testing the Jacana-7, Jacana-8, Jacana Sur-1 and Jacana Sur-2 wells.
Cabrestero (working interest ("WI") 100%):
Based on the exploration success of the Bacano-2 well drilled in Q4 2016, Parex has continued to evaluate the Bacano field during 2017. Note that the Bacano field is located directly south of the LLA-34 Jacana field and north of the Akira field, also on the Cabrestero Block.
Parex has drilled the Bacano-4 appraisal well with a bottom-hole location approximately 300 meters southeast of the Bacano-2 location. The Bacano-4 well was cored and testing is anticipated before the end of Q2 2017. The well will be used to appraise the Guadalupe reservoir distribution and quality on the Cabrestero Block.
We are currently drilling the Bacano-5 development well and plan to drill an additional Bacano exploration well this year.
Capachos (WI 50%):
Parex is currently finalizing the civil works required to spud its first of two farm-in development wells on the Capachos Block. We expect to spud the first well in June 2017, with each well scheduled to drill for approximately 60 days.
Aguas Blancas (WI 50%):
Parex continues to advance its assessment of the Aguas Blancas field. To date in 2017, we have drilled 6 wells of the planned 2017 10-15 well drilling program. We expect to complete, by the end of June 2017, the testing of approximately 9-11 wells which will then be followed with a water-flood pilot.
Llanos 34 (WI 55%):
Parex continues to delineate the Jacana/Tigana trend. The appraisal wells Jacana-7, Jacana-8, Jacana Sur-1 and Jacana Sur-2 have been drilled and are being tested with a service rig. In addition, a development well Tigana Sur-5 is currently drilling.
The Jacamar-1 exploration prospect has spud and will evaluate a fault trend that is parallel to the east of Tigana/Jacana trend. The Sinsonte-1 exploration well was drilled on a fault trend approximately 7.7 kilometers from the Jacana fault. Although the Guadalupe sands were encountered, the logs indicated that the reservoir was wet. The well was subsequently plugged and abandoned.
Annual General Meeting - May 11, 2017
Parex invites stakeholders to attend its AGM on Thursday, May 11, 2017 beginning at 9:30 am Mountain Time at the Conference Centre on the 4th floor of Eighth Avenue Place East Tower, 525 - 8th Avenue S.W., Calgary, Alberta T2P 1G1. A live audio webcast of the AGM will be also available via the following link:
The audio recording of the AGM as well as the presentation will be made available for playback at www.parexresources.com within hours of the event concluding.
SOURCE: Parex Resources Inc.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.