en.Wedoany.com Reported - Canadian oil and gas company Parex Resources has reached an agreement with Colombia's state-owned oil company Ecopetrol to acquire a 50% participating interest in the Casabe and Llanito blocks in the Magdalena Basin. Parex has committed to a US$250 million investment plan over five years, of which US$125 million is carried capital. The agreement involves no upfront acquisition costs, and Parex will receive a 50% share of production based on the execution of the capital development plan.
The Casabe and Llanito blocks currently produce approximately 14,900 barrels of medium crude oil per day, with original oil in place estimated at over 3 billion barrels, but the average recovery factor is below 15%. Utilizing reprocessed 3D seismic data and adopting technologies such as horizontal drilling, well pattern optimization, and waterflood optimization, production is expected to increase. Enhanced oil recovery techniques such as polymer flooding and CO₂ flooding also offer additional potential. Existing infrastructure, including processing facilities and pipelines to Ecopetrol's Barrancabermeja refinery, supports further development.
The agreement enhances near-field exploration opportunities and helps optimize unit operating costs. Parex has a proven track record in enhanced oil recovery, demonstrated in projects such as Cabrestero and LLA-34. Upon satisfaction of conditions including regulatory approvals, Parex will begin participating in base and incremental production, with the first well expected to be drilled in the second half of 2026. Parex will manage drilling and capital projects, while Ecopetrol continues to oversee production operations. Previously, in March 2026, Frontera signed a definitive agreement with Parex to sell its Colombian exploration and production assets for US$750 million, with completion expected in the second quarter of 2026.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
