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UPSTREAM Block): advance initial works for 2021 drill- with approximately 23,000 km of 2D data. A
ing; Boranda: one appraisal well; Fortuna: drill time-processed dataset is now available.
Parex plans to increase exploration well; Parex’s proposed capital pro- Depth processing is ongoing using a seis-
gramme to increase near-term production and mic-horizon-constrained velocity model
production and re-start evaluate exploration prospects for long-term through five different basins, from the prolific
Talara basin in the north to the frontier basins in
sustainability.
capex programmes repurchased for cancellation 4.7mn common Time data are now available in our data
Share Buy-Back: To date, the Company has the extreme south.
Parex Resources, a company headquartered in shares under the normal course issuer bid that library. Depth results are expected in Q1-2021.
Calgary, Alberta and focused on Colombian oil commenced on December 23, 2019. As of June Well control data will be incorporated using
exploration and production, provides an opera- 19, 2020, Parex has 138.9mn basic shares out- rockAVO for forward modeling and QI
tional update. standing compared to 149.4mn basic shares modeling.
Business Update: With greater visibility to outstanding as at March 31, 2019. MegaSurveys are very large, merged, post-
stabilising netbacks and community safety, Parex Financial Strength: Parex is well-posi- stack datasets consisting of multiple surveys
is developing action plans to return shut-in pro- tioned for the challenges of the current busi- that have been rebinned to a common grid and
duction, resume capital activity and generate ness environment. The Company is debt-free, then matched to produce a phase-balanced and
free cash flow. However, the Company’s priority has an approximate June 1, 2020, cash position uniformly scaled contiguous regional volume.
remains the health and safety of its employees, of $360mn and an undrawn credit facility of Their regional nature permits fuller explora-
partners and the communities where we operate. $200mn. As at March 31, 2020, the Company’s tion of tectonic and basin developments, leading
Production: As part of its response to the working capital was $330mn. to a greater understanding of existing and poten-
COVID-19 pandemic and in order to minimise Parex Resources, June 24 2020 tial petroleum systems.
the social interactions in its operating commu- The PGS Peru MegaSurvey covers both exist-
nities and maximise shareholder value during ing discoveries and licensing opportunities in
periods of low oil pricing, Parex voluntarily cur- SERVICES open blocks, revealing analogs of existing inter-
tailed Q2-2020 production volumes. ests. It can be used to pick prospects or to eval-
The Company’s Q2-2020 average sales First seismic data from uate the successes and failures so far across the
volumes are estimated at 42,700 barrels of oil entire region. Field-scale geological understand-
equivalent per day (boepd). The following sets PGS Peru MegaSurvey ing can now be placed in a basin-wide context.
forth Q2-2020 operational estimates: produc- The Peruvian continental margin is char-
tion (average), 41,200 boepd; sales (average), now available acterised by the Peru-Chile trench, where the
42,700 boepd; Brent Oil (average posted price), Nazca Plate converges obliquely and subducts
$33 per barrel; Parex price differential and trans- First data is now available on PGS’ Peru MegaS- beneath the South American Plate. This mar-
portation expense, $17.25-17.50 per boe; capital urvey. This large-scale merged and matched seis- gin is a classic accretionary prism, comprising a
expenditures, $10-12mn. mic dataset, including 2D and 3D data, provides series of Mesozoic-Cenozoic fore-arc basins that
We expect to gradually increase production E&P companies interested in South America form the continental slope.
into Q4-2020 with a targeted range of 44,000- with an excellent opportunity to evaluate pro- These basins are separated by rotated base-
48,000 boepd. Production is currently above spectivity on a regional basis. ment highs, generated by strike-slip faulting.
40,000 boepd and Parex estimates Q3-2020 Targeting the extensive coastline of Peru, this Intermittent reactivation of these basement
production to average 42,000-44,000 boepd. To PGS MegaSurvey comprises 21,000 square km faults caused the extension and inversion of sev-
date the June 2020 Vasconia differential to Brent of 3D seismic matched and merged together eral offshore basins during the Cenozoic.
oil price has averaged approximately $3.50 per
barrel.
2020 Capital Expenditures: The Company
is preparing to re-activate its development and
exploration programme. We estimated H1-2020
invested capital to be $80-85mn and a potential
H2-2020 capital programme of $65-70mn for a
total full-year 2020 capital of $145-155mn.
Depending on market conditions and com-
munity safety, over the next quarter Parex is pre-
paring to approve investment in the following
development projects: LLA-34 and Cabrestero:
Completions and work-overs (four to six wells)
plus development drilling (four to six wells);
Capachos: Andina field flowline completion;
Aguas Blancas: Completion of two drilled explo-
ration wells.
The Company will be building contingent
plans to add a diverse exploration programme
for Q4-2020. A further capital update will be
provided as part of the Q2-2020 financial results
for the following projects: La Belleza (VIM-1

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