Parex Resources Inc.
TSX VENTURE : PXT

Parex Resources Inc.

April 29, 2010 16:56 ET

Parex Resources Provides Operational Update for Colombia and Trinidad

CALGARY, ALBERTA--(Marketwire - April 29, 2010) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Parex Resources Inc. ("Parex" or the "Company") (TSX VENTURE:PXT) is pleased to provide 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.

Corporate Overview

Parex, through its direct and indirect subsidiaries, is engaged in oil and natural gas exploration, development and production in South America and the Caribbean region. Parex is conducting exploration activities on its 489,000 acre (244,500 net acre) holdings in the Llanos Basin of Colombia and 223,500 acre (111,750 net acre) holdings onshore Trinidad & Tobago. Parex is headquartered in Calgary, Canada.

This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction.

Advisory on Forward Looking Statements

Certain information regarding Parex set forth in this document contains forward-looking statements that involve substantial known and unknown risks and uncertainties. The use of any of the words "plan", "expect", "project", "intend", "believe", "should", "anticipate", "estimate" or other similar words, or statements that certain events or conditions "may" or "will" occur are intended to identify forward-looking statements. Such statements represent Parex's internal projections, estimates or beliefs concerning, among other things, future growth, results of operations, production, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, plans for and results of drilling activity, environmental matters, business prospects and opportunities. These statements are only predictions and actual events or results may differ materially. Although Management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Parex's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Parex.

In particular, forward-looking statements included in this document include, but are not limited to, statements with respect to the performance characteristics of the Company's oil properties; supply and demand for oil; financial and business prospects and financial outlook; results of operations; drilling plans; activities to be undertaken in various areas; timing of drilling and completion; and planned capital expenditures, the timing thereof; the method of funding.
These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to, the impact of general economic conditions in Canada, Colombia and Trinidad & Tobago; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced, in Canada, Colombia and Trinidad & Tobago; competition; lack of availability of qualified personnel; the results of exploration and development drilling and related activities; obtaining required approvals of regulatory authorities, in Canada, Colombia and Trinidad & Tobago; risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities; volatility in market prices for oil; fluctuations in foreign exchange or interest rates; environmental risks; changes in income tax laws or changes in tax laws and incentive programs relating to the oil industry; ability to access sufficient capital from internal and external sources and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect Parex's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).

Although the forward-looking statements contained in this document are based upon assumptions which Management believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this document, Parex has made assumptions regarding: current commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the price of oil; the impact of increasing competition; conditions in general economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; royalty rates, future operating costs, and other matters. Management has included the above summary of assumptions and risks related to forward-looking information provided in this document in order to provide shareholders with a more complete perspective on Parex's current and future operations and such information may not be appropriate for other purposes. Parex's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Parex will derive there from. These forward-looking statements are made as of the date of this document and Parex disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Parex Resources Inc.
    Michael Kruchten
    Manager, Investor Relations
    (403) 517-1733
    (403) 265-8216 (FAX)
    or
    Parex Resources Inc.
    Kenneth G. Pinsky
    Vice President, Finance and Chief Financial Officer
    (403) 517-1729
    (403) 265-8216 (FAX)