CALGARY, ALBERTA--(Marketwire - Feb. 25, 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 operational update on the Company's exploration activities in Colombia and Trinidad.
The Company has continued to progress its Colombian exploration program and consistent with previous disclosure, Parex expects to begin its eight well 2010 Colombian drilling program during the second half of April 2010.
Parex has completed the acquisition and processing of 270 square kilometres of three dimensional ("3D") seismic coverage for Block LLA-16 and of 216 square kilometres of 3D seismic on Block LLA-20. The seismic program was completed prior to year-end at a net cost of approximately USD $7 million. The Company expects to acquire an additional approximately 100 square kilometres and 40 square kilometres of 3D seismic coverage for Blocks LLA-16 and LLA-20 respectively during 2010.
From the prospects and leads identified, the Company has identified six locations on Block LLA-16 and two locations on Block LLA-20 for drilling in 2010. Surface lease negotiations are underway to allow lease preparation during the dry season and construction of the first location commenced mid-February.
A six well rig contract has been signed with Petrex S.A, a Saipem company. The Company also has an option to extend the rig contract for another six months. The new hydraulic rig is currently being shipped to Colombia where it will be rigged up and tested prior to field mobilization. The rig will be used to drill the first of six 3D seismic defined locations on Blocks LLA-16 and LLA-20. Drilling depths range from 10,000 to 14,000 feet with the average time to drill, complete, test and rig release estimated to be 45 days.
Parex, through its joint venture partner is currently acquiring 180 square kilometres of 3D seismic coverage in Block LLA-30. The Company's joint venture partner is operating a second drilling rig that is expected drill two wells on Blocks LLA-29 and LLA-30 during the fourth quarter of 2010.
A Trinidad based rig has been contracted to drill two wells on Cory Moruga Block 'E' ("Cory Moruga") and one well in the Central Range Block during 2010. Firecrown, the first Cory Moruga prospect, will be drilled to the earning depth of 10,500 feet. The average time to drill, complete, test and rig release is estimated to be 90 days. Currently, the rig is being contracted by Parex's Cory Moruga partner for two shallow wells on an unrelated block that commenced in mid-February 2010. At the end of those operations the rig will be mobilized to the Firecrown location. Surface lease construction is now underway at Firecrown, and is expected to be completed in approximately four to six weeks. Drilling is expected to begin immediately following lease construction.
Under the terms of the previously announced farm-in agreement, Petro Andina (Trinidad) Ltd. ("PATL"), an indirect subsidiary of Parex, was to have commenced the drilling of the first of two exploration wells on the Cory Moruga by February 28, 2010. An extension of this date has been requested from the Republic of Trinidad & Tobago Ministry of Energy and Energy Industries to allow for completion of the Firecrown surface lease. The Company expects to receive extension approval shortly.
2009 Year-End Results
Parex is planning to announce its 2009 year-end financial and operating results at the close of business on Monday, March 29, 2010. Parex will host a conference call and live webcast to discuss these results on Tuesday March 30, 2010 beginning at 10:30 am Mountain Standard Time (12:30 pm Eastern Standard Time). Media, analysts or any other interested parties wishing to participate in the call can access it by calling 403-537-9608 or 1-866-696-5910 (toll free in North America). No access codes are required. The live audio webcast of the conference call will be available through Windows Media Player by following the link posted under the Investor Relations, Events section of the Company's website at www.parexresources.com. Following the conclusion of the call, a link to a replay of the webcast will also be posted on the Company's website.
Parex unaudited working capital as of December 31, 2009 was approximately USD $95 million, with no debt. Parex currently has approximately 63.9 million common shares outstanding (67.6 million fully diluted).
First Energy Conference and Updated Corporate Presentation
Mr. Wayne Foo, President & CEO, will present at the FirstEnergy/Societe Generale Canadian Energy Conference in New York City, March 12, 2010. Parex has posted an updated corporate presentation on its website at www.parexresources.com.
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 218,500 acre (109,250 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.
Certain statements regarding Parex, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Parex's control. Specifically, and without limitation, all statements included in this press release that address activities, events or developments that either Parex expects or anticipates will or may occur in the future, including management's assessment of future plans, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Parex's control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements. Although Parex believe that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Although the forward-looking statements contained in this Press Release are based upon assumptions which management believes to be reasonable, Parex cannot assure shareholders that actual results will be consistent with these forward-looking statements. Accordingly, Parex cannot give any assurance or make any representations or warranty that the expectations conveyed by the forward-looking statements will prove to be correct and actual results may differ materially from those anticipated in the forward-looking statements. Parex cannot undertake any obligation to publicly update or revise any forward-looking statements other than required by applicable securities law.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.