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Parex Resources reports positive results from LLA-34 drilling

Canada-based Parex Resources which is focused on Colombian oil exploration and production has reported positive results from its LLA-34 drilling program.

Dave Taylor, Parex President and CEO commented, “We are very pleased with the latest LLA-34 drilling successes.  These new results continue to push out the limits of the Jacana/Tigana oil fields.”

Llanos-34 (working interest (“WI”) 55%): Parex continues to delineate the Jacana/Tigana trend on LLA-34.

Tigana Suroeste-7: Producing 730 bopd.  The Tigana Suroeste-7 well was drilled to a total depth of 11,730 feet approximately 1.7 kilometers southwest of the Tigana Suroeste-1 well and 1.7 km northeast of the Jacana-10 well to appraise the Guadalupe formation between the Tigana and Jacana pools.  The well was tested and placed on production with an Electric Submersible Pump (“ESP”) at a rate of 730 barrels of oil per day (“bopd”) with a 4% watercut and an estimated drawdown of 50%.  The Tigana Suroeste-7 well was drilled outside the GLJ 2016 Report 2P boundary.  After Tigana Suroeste-7, Tigana Suroeste-3 was drilled and cased.

Jacana-13: Testing 750 bopd.  The Jacana-13 well was drilled to a total depth of 11,889 feet at approximately 1.7 kilometers north of the Jacana-17 well and 4.5 kilometers southwest of the Jacana-1 discovery well.  Jacana-13 encountered a 65 foot section of Guadalupe reservoir.  The lower sands in the section were tested separately, recovering water and were abandoned.  The upper sands in the well were completed and tested with an ESP.  Over a 4 day test period the well produced a total of 2,036 barrels of 15 API oil and 683 barrels of completion load fluid.  The watercut has been declining throughout the test and the most recent production test rate was 750 bopd with a 5% watercut comprised of completion load fluid.  Bottom hole pressure recorders from the last test indicate a producing drawdown of approximately 50%.  Additional production history from the Jacana-13 well will be required to determine whether there is connectivity of the upper oil bearing zone with the lower water bearing zone. The Jacana-13 well was drilled outside the GLJ 2016 Report 3P boundary. 

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.