Parex Resources to increase Colombian basin activity

Parex Resources Inc. is increasing drilling and gas reinjection in Llanos and Magdalena basins, Colombia, to support a revised 52,000-53,000 boe/d production guidance for 2022.

In Llanos basin, Parex has working interests in Capachos, Arauca, Cabrestero, LLA-40, and LLA-26 blocks. In Magdalena basin, Parex has working interests in VIM-1, Fortuna, and Boranda blocks.

In Capachos block, Parex is bringing online multizone wells and drilled the first new well in the block since 2019. The well encountered a new deeper zone resulting in a crude oil discovery. Work is currently being completed on the well to commingle production across the different zones, and it is expected to be online in fourth-quarter 2022.

Parex also recompleted an existing well that is now producing out of a new shallower zone with comingled production and is currently drilling a follow-up well. The company has identified three proven zones on the block for multiple recompletion and commingling opportunities for both existing and planned new wells.

At Arauca block, civil works is completed for the first well and the rig is expected to arrive in first-quarter 2023 because of delays from testing at Capachos block.

In Cabrestero block, the company discovered a new play that is now producing about 1,800 b/d heavy oil and is evaluating potential follow-up locations, including a horizontal development well, and is planning to construct a new well pad in fourth-quarter 2022 to further delineate the potential.

Acceleration of infill drilling and waterflood optimization is proceeding as planned and has resulted in production gains, Parex said. Production has increased over 45% year-over-year from the block, with third-quarter 2022 production of about 11,000 b/d heavy crude oil and current production over 12,100 b/d.

In Block LLA-40, Parex performed a recompletion in a new zone that resulted in a follow-up drilling campaign. The first follow-up well was drilled near end third-quarter 2022, which has produced crude oil and is expected to be on full production early fourth-quarter 2022 following infrastructure upgrades, it said. A second appraisal well is planned for fourth-quarter 2022 to further define the zone size as well as increase short-term production.

Block LLA-40 and Block LLA-26 drilling campaigns have experienced weather-related setbacks, specifically a landslide that destroyed the main road to the blocks, affected rig moves and delayed spud timing. The rig for the Block LLA-26 campaign was diverted to drill an exploration well on Block LLA-94. The Block LLA-26 drilling campaign will now begin in late fourth-quarter 2022 and is expected to add production beginning in first-quarter 2023.

In Magdalena basin, VIM-1 block, a horizontal development well has been drilled to its total depth with encouraging results and the well is expected to be completed early fourth-quarter 2022. The existing vertical well on the block produced about 1,400 b/d of light and medium crude oil, and 5.9 MMcfd natural gas during third-quarter 2022. Once the horizontal well is completed, the two wells will be used for gas reinjection.

Parex will grow long-term liquids recovery by reinjecting gas for EOR and expects to double the liquids recovery factor at VIM-1, it said.

Also in Magdalena basin, Parex completed the assessment of four prospective formations at Fortuna block, which indicated non-economic results and ended the campaign. 

Parex drilled the first ever horizontal well on Boranda block, which is currently producing about 500 b/d heavy oil on jet pump. Based on this, the company is evaluating similar horizontal drilling techniques in the field and estimates there are 10-15 potential follow-up locations on the block.

Current production is about 55,000 boe/d and fourth-quarter 2022 production is expected to average 54,000-58,000 boe/d, with incremental volume to come from already drilled wells at Capachos, continued drilling at Block LLA-40 for short-cycle opportunistic adds, and VIM-1 block gas reinjection once online.

Revised production guidance for fiscal year (FY) 2022 will average 52,000-53,000 boe/d, with exit rate to exceed 60,000 boe/d. By comparison, FY 2021 average production was 46,998 boe/d.

Parex is operator at Llanos with 50% working interest in Capachos, VIM-1, and Fortuna blocks. Parex is also operator at Magdalena with 100% working interest in Cabrestero, Block LLA-40, Block LLA-26, and Boranda blocks.