Parex Resources Inc. Confirms Production Forecast for Fiscal Year 2024 Despite Operational Disruptions
**Parex Resources Inc.**, one of Colombia’s top independent oil and gas companies, has faced disruptions to its operations in the Northern Llanos region due to ongoing social protests since January 22, 2024. Despite these challenges, the company has decided to maintain its production forecast for fiscal year 2024, expecting an average output of **54,000 to 60,000 barrels of oil equivalent per day (boe/d)**.
The protests have forced Parex to temporarily halt its operations at the Capachos and Arauca blocks. As of February 11, the company’s average production stood at approximately **53,200 boe/d**, with current levels estimated at around **50,000 boe/d**. This production includes light and medium crude oil, heavy crude oil, and conventional resources.
To address the situation and resume operations, Parex is actively engaging with stakeholders and the Colombian national government. The company has implemented stringent security protocols in response to the ongoing protests and is working through established engagement processes to find a mutually beneficial resolution.
In addition, Parex plans to release its financial and operating results for the fourth quarter of 2023 and the full fiscal year 2023. It will also provide an independent assessment of its reserves as of December 31, 2023, after markets close on February 29, 2024. A conference call and video webcast to discuss these results are scheduled for March 1, 2024.
Headquartered in Calgary, Canada, with operations in Bogotá, Colombia, Parex is part of the prestigious S&P/TSX Composite ESG Index and is committed to sustainable, conventional production practices. The company’s decision to maintain its production guidance amidst the operational challenges caused by the social unrest highlights Parex’s dedication to contingency planning and its resilience in dealing with these disruptions.
Analyst comment
Neutral news.
As an analyst, the market may experience some short-term volatility due to the disruptions to Parex Resources’ operations caused by ongoing social protests in Colombia. However, the company’s decision to maintain its production forecast and its efforts to engage with stakeholders and the government indicate its resilience and commitment to finding a resolution. Investors should closely monitor the situation and the company’s upcoming financial and operating results for potential market impacts.
