LLA-34 Drilling Success at Jacana-13, Jacana-17 & Tigana Suroeste-7 - Seite 2

Jacana-17: Tested 1,506 bopd.  The Jacana-17 well was drilled to a total depth of 11,129 feet, approximately 1.3 kilometers west of the Jacana-12 well to evaluate the southwestern extent of the Jacana field.  The well encountered potential oil bearing sands in the Guadalupe reservoir and was completed and placed on production with the use of an ESP.  Over a 21 day test period the well recovered a total of 20,007 barrels of 14.8 API oil and 8,281 barrels of water for an average oil production rate of 952 bopd.  The maximum oil production rate during the test was approximately 1,700 bopd and the average production rate during the final week of the test was 1,506 bopd.  The production test was extended to assess the water production associated with the well.  After initial cleanup of the completion load fluid, the producing watercut was 70% but steadily declined over the test period to 34% at the end of the test.  This declining water production also coincided with declining bottom hole pressure which is not typical of water coming from an active aquifer.   Parex interprets the water production in Jacana-17 to be locally derived and associated with low resistivity reservoir sands present directly above the main oil producing interval.  The Jacana-17 well was drilled outside the GLJ 2016 Report 3P boundary. 

Management is very pleased with the appraisal results in 2017, as year to date 19 wells have been drilled in the Bacano-Jacana-Tigana trend with 17 wells currently producing oil.  Of the 17 oil wells, 9 wells were successfully drilled outside the GLJ 2016 Report 2P boundary. 

Cabrestero (WI 100%): The appraisal well Bacano-6 was spud on November 17, 2017 to evaluate the south-west area of the block. We expect to reach the target depth late December 2017. Bacano-6 is located 1,350 meters south of Jacana-17 and west of Bacano-5.

Capachos (WI 50%): The Capachos Sur-2 well was spud on November 12, 2017 and is expected to reach its target depth in early 2018.  The Capachos-2 well has been placed on production at a restricted rate and construction of permanent production facilities has begun. 

VMM-11 (WI 100%): We expect Iguazu-1 exploration well to be spud early December 2017 and to be evaluated prior to year-end 2017.  

Production: As previously disclosed, we expect Q4 2017 production to average 38,500 boe/d and Q1 2018 production to exceed 40,000 boe/d.