Parex Resources and its strategic partner Ecopetrol, have entered into definitive agreements to consolidate their position along the Llanos Foothills trend in alignment with current Colombian government objectives to secure gas supply and support energy transition initiatives.

Parex and Ecopetrol are now strategically positioned with eight blocks, along with the creation of a mutual area of interest (“AMI”), to capitalize on the approximately 500-kilometer geological trend and explore for new sources of domestic gas and liquids. This trend boasts world-class discoveries at both ends, which cumulatively have produced over 1.4 million barrels of oil(1), and roughly 4 trillion cubic feet of natural gas(1), with the middle of the trend largely unexplored.

The agreements signify progress in Parex’s long-term gas strategy to pursue underexplored liquids-rich plays, which are within an area that has existing infrastructure that can be leveraged to accelerate exploration and development following new regulations that have been approved by the Colombian government.

“After extensive joint efforts, Parex and Ecopetrol are proud to announce the execution of definitive agreements to explore the high-potential Foothills of Colombia and harmonize our respective land positions. On behalf of Parex, I want to express my gratitude to Ecopetrol for their trust in our company, while reaffirming our commitment to the respectful treatment of community and stakeholder rights. This collaboration not only supports Colombia’s energy position and the current administration’s initiatives, but also marks a transformative frontier for Parex as we advance our gas strategy alongside our strategic partner,” commented Imad Mohsen, President & Chief Executive Officer.

“Over the last three years, Parex has strategically strengthened our asset portfolio, such as carrying out the Arauca & LLA-38 farm-in and acquiring 18 new blocks in the 2021 Colombia bid round. This further partnership with Ecopetrol is a continuation of those efforts to expand and high-grade our portfolio as we focus on executing near-field exploration prospects – while concurrently drilling high-impact targets with step-change potential.”

(1) New Parex operatorship