Parex Resources Inc. provides an operational update.
•Grew Q2 (April 1-June 30, 2015) average oil production to 27,025 barrels of oil per day compared to production guidance of 26,500 bopd and an increase from the prior period production of 26,729 bopd;
•Commenced production at the Rumba exploration discovery from the Mirador Formation on June 20, 2015 (Block LLA-26, 100% WI). The Rumba-1 well is producing at an initial restricted rate of approximately 1,000 bopd of 19 API oil with a water cut of less than 1%;
•Drilled Rumba-2, an appraisal follow-up to Rumba-1 on June 19, 2015. Rumba-2 was programmed to evaluate the Mirador formation approximately 1 kilometer north-east of Rumba-1. Initial interpretation suggests that the primary objective Mirador formation appears to be connected and higher to Rumba-1. The drilling rig has initiated completion operations on Rumba-2 and we plan to use the current drilling rig to drill at least one additional well on the existing pad;
•Abandoned drilling of the exploration Bazar-1 (Block LLA-26, 100% WI) due to mechanical problems in the Leon/C1 formations. Using the same drilling pad as Rumba-1, Bazar-1 targeted the Une Formation with a planned horizontal departure of 2.2 kilometers and a wellbore deviation in excess of 60 degrees. Parex has applied to have Bazar-1 classified as the second and final current phase commitment well on Block LLA-26. The Company has re-designed a new drilling program to target the deeper Une Formation and expects to drill the Bazar-2 exploration well prior to year-end 2015;