OilVoice - Parex Resources Provides Operational Update for Colombia and Trinidad

Parex Resources Provides Operational Update for Colombia and Trinidad

Sunday, May 02, 2010

Parex Resources Inc. provides an update on its 11 well 2010 exploration program.

Colombia Exploration
Parex expects to drill eight wells in Colombia in 2010. Lease construction for Kona (Parex 50% working interest), the first location on Block LLA-16 has been completed. A Parex contracted rig is currently being mobilized to the Kona location, with approximately 50% of rig truck loads on site. Drilling is expected to commence in early May. Parex estimates that drilling will be completed in 25 days with completion and testing to follow. Kona will evaluate the Carbonera (C7), Mirador and Une formations with a targeted drilling depth of 13,250 feet.

Immediately after drilling Kona, drilling operations are expected to begin at the second location on Block LLA-16, named Goroka (Parex 50% working interest). Lease construction for Goroka is nearing completion and has all-season access. Goroka will evaluate the Carbonera (C7), Mirador and Une formations with a targeted drilling depth of 12,000 feet. Subsequent drilling on the Colombian exploration blocks is expected to be conducted on a continuous basis.

The Company has begun acquiring an additional 50 square kilometres and 40 square kilometres of 3D seismic coverage for Blocks LLA-16 and LLA-20 respectively. Parex, through its joint venture partner, has acquired 180 square kilometres of 3D seismic coverage in Block LLA-30, which is currently being processed and evaluated.

Trinidad Exploration
On April 16, 2010, drilling operations began on the Firecrown well on the Moruga Block. This is the first exploration well of Parex's three well 2010 Trinidad exploration program. To date, surface casing has been set and the rig is drilling the intermediate hole. The Firecrown well is expected to reach a total depth of 10,500 feet by the end of May 2010. Immediately after drilling Firecrown, the rig will remain on the Moruga Block and begin drilling the next exploration well, Snowcap, to a maximum depth of 8,600 feet. Lease construction for Snowcap is nearing completion. Both wells are designed to test the Herrera formation. Parex will earn a 50% working interest on the Moruga Block by paying 95% of drilling costs to a maximum of $13.3 million.