Colombia

By OGJ editors
HOUSTON, June 15 – Parex Resources Inc., Calgary, will test four zones at the Kona-1 exploratory well on the LLA-16 block in the central Llanos basin in Colombia.

The well, at 13,004 ft June 14 enroute to 13,250 ft, encountered hydrocarbon shows in the upper C7, Mirador, Gacheta, and Une formations at 11,700-13,000 ft. Wireline logs run to the base of Mirador indicate potential net oil pay of 82 ft true vertical depth consisting of 35 ft in upper C7 and 47 ft in Mirador.

Wireline logging has been completed to 11,970 ft, the maximum depth possible given the deviation of the well bore. The Gacheta and the Une formations are below 11,970 ft and cannot be logged using wireline tools, therefore a full logging-while-drilling tool suite will be used to log from 11,970 ft to final total depth.

A comprehensive evaluation program including flow tests is being designed and is expected to be implemented for all four of the prospective zones. Well test results should be available by the end of July 2010. Parex operates the block with 50% interest.

Meanwhile, Parex has qualified as a Type 1 block operator for the Open Round Colombia 2010. Type 1 blocks are located in the currently producing basins. Parex is assessing open Llanos basin blocks for potential bids.