Parex Resources is resuming full operations at its Capachos Block (50% W.I.). The Company also provides an update on its Arauca Block (50% W.I.).

Resuming Operations at Capachos Block (50% W.I.) and Update on Arauca Block (50% W.I.)

“Parex’s top priority is the safety of its employees and contractors. I want to personally recognize our workforce, community members as well as national and local authorities, for their work in helping us progress the first step of carefully resuming full activities in the Northern Llanos. After continuous dialogue and coordination with various government entities, as well as a robust safety and security assessment in alignment with our workforce, we are confident in safely restarting activity in the area. We are excited to say that we have begun the first steps to resume full operations at our Capachos block, and will continue to proactively work with all stakeholders in order to resume activities at our Arauca block,” commented Daniel Ferreiro, President & Country Manager of Parex Resources Colombia.

In the Northern Llanos, on January 21, 2023, the Company shut-in its Capachos Block (50% W.I.) and halted drilling operations at the Arauca Block (50% W.I.) due to heightened security concerns. Following the successful engagement with stakeholders at all levels, safe conditions have been restored at the Capachos Block (50% W.I.) and initial production has been restarted. Following the positive progress at Capachos, the Company is aiming to resume drilling operations at its Arauca Block (50% W.I.) in Q2 2023.

Corporately, the shut-ins were limited to the Capachos and Arauca Blocks (50% W.I.) and are expected to affect Parex’s Q1 2023 results. Net production was impacted by approximately 6,500 boe/d during the suspension of operations, in addition to slowing the pace of new wells that could be drilled and brought online.

KeyFacts Energy: Parex Resources Colombia country profile