Parex makes discovery in Colombia, plans 5% production growth in 2024

Jan. 26, 2024
Parex Resources, Calgary, has discovered oil and gas in Arauca in eastern Colombia.

Parex Resources, Calgary, has discovered oil and gas in Arauca in eastern Colombia and plans to continue the program with follow-up wells.

The exploration well, Arauca-8, was drilled to 21,010 ft total depth. Initial tests produced about 9 MMcfd of natural gas and over 1,000 b/d of condensate.

Initial results in the first two wells in Arauca are promising, said Eric Furlan, Parex Resources’ director of operations, in a press release. “Well Arauca-8 has successfully tested the first two zones with discoveries in each, with two more zones to test where logs and pressure measurements show the presence of oil,” he said.

The location, on the banks of the Arauca River near the border with Venezuela, “corresponds to the region of the Colombian Llanos,” said independent consultant, Jorge Albeiro. The Llanos region is known for Occidental Petroleum’s September 1983 Caño Limón oil field discovery. At that time, the discovery had estimated reserves of over 1.1 billion bbl of oil.

Well Arauca-15 “is being deviated to an optimal location after having demonstrated the presence of hydrocarbons in multiple layers in November 2023,” Albeiro noted.

In 2024, Parex Resources said it plans to invest about $410 million for various projects (15% less than in 2023), with 75% of the funds allocated to operated blocks. The investment is expected to fund the drilling of 35 wells, including five exploration wells that the company deems “highly probable” for new discoveries of oil and natural gas. Some $40 million will be allocated to these five wells—to be drilled in Capachos, Fortuna, Llanos-32, and Llanos-74 blocks in 2024.

Three more notable wells to be drilled this year are Arantes (Llanos-122), Hydra (VIM-1), and Berilo Oeste (Llanos-38). For these, the company expects to spend about $50 million. The first two will target natural gas, while the third will target light oil and natural gas.

Parex expects production to average 57,000 boe/d in 2024, a 5% increase compared with 2023. In fourth-quarter 2023, the company produced 57,329 boe/d, 6% increase compared with the same quarter in 2022.