Q4 Guidance Increase With LLA-34 Drilling Success

CALGARY, Alberta, Oct. 11, 2017 (GLOBE NEWSWIRE) -- Parex Resources Inc. (“Parex” or the “Company”) (TSX:PXT), a company headquartered in Calgary, Alberta and focused on Colombian oil exploration and production, provides an operational update.

Production: Q3 2017 production was approximately 36,150 barrels of oil equivalent per day (“boe/d”) (99% crude oil), an increase of 5% from 34,291 boe/d in the prior quarter, and over 16% year-to-date September 30, 2017. We are increasing our Q4 2017 guidance to an average rate of 38,500 boe/d, generating over 23% increase from the Q4 2016 average production rate. We also expect Q1 2018 production to average above 40,000 boe/d. 

Working Capital: Due to our high netbacks and strong capital efficiencies, we estimate our working capital as at September 30, 2017 to be approximately $135 million, an increase of $42 million over December 31, 2016 and we continue to be long-term debt free. 

Llanos-34 (working interest (“WI”) 55%): Parex continues to delineate the Jacana/Tigana trend on LLA-34. Current gross block oil production is above 50,000 bopd.  Recently added wells include Tigana Norte-2 (2,000 bopd) and Jacana-12 (3,100 bopd). The Jacana-13 and Jacana-17 delineation wells have both been drilled and cased with completion operations expected to commence shortly.  The Jacana-17 well was drilled approximately 2.4 kilometers west of the 2016 year-end GLJ Petroleum Consultants Ltd. (“GLJ”) 3P boundary while the Jacana 13 well was drilled approximately 1.7 kilometers north of Jacana 17.  Delineation of the Tigana/Jacana trend will continue for the remainder of the year with one drilling rig delineating the northern extent of the Tigana field and another rig mobilizing to test the region between the Tigana and Jacana fields. 

The Tigana Norte-3 well is currently drilling to delineate downdip of the offsetting Tigana Norte-1 and Tigana Norte-2 wells.  Also, a rig is being mobilized to the Tigana Sur pad to drill the Tigana Sur Oeste-7 well.  The Tigana Sur Oeste-7 well is located midpoint between Jacana 10 and Tigana Sur Oeste-1 wells which are 3.4 kilometers apart. 

The exploration well Curucucu-1 has been producing approximately 1,600 bopd with a water-cut of less than 2% from the Guadalupe Formation since August 30, 2017. 

Cabrestero (WI 100%): There are currently 4 producing Bacano wells, located to the south-west of the Jacana field producing approximately 4,500 bopd.  Prior to year-end 2017, Parex plans to drill two additional appraisal wells.