{"id":4858,"date":"2018-02-06T03:00:00","date_gmt":"2018-02-06T11:00:00","guid":{"rendered":"https:\/\/parexresource2.wpenginepowered.com\/press-releases\/parex-resources-increases-2p-reserves-by-45-to-162-mmboe\/"},"modified":"2026-02-23T02:52:16","modified_gmt":"2026-02-23T10:52:16","slug":"parex-resources-increases-2p-reserves-by-45-to-162-mmboe","status":"publish","type":"press-releases","link":"https:\/\/www.parexresources.com\/es\/comunicados-de-prensa\/parex-resources-increases-2p-reserves-by-45-to-162-mmboe\/","title":{"rendered":"Parex Resources Increases 2P Reserves by 45% to 162 MMboe"},"content":{"rendered":"CALGARY, Alberta, Feb. 06, 2018 (GLOBE NEWSWIRE) — Parex Resources Inc. (\u201cParex\u201d or the \u00abCompany\u00bb) (TSX:PXT) is pleased to announce the results of its annual independent reserves assessment as at December 31, 2017.<\/p>\n
The financial and operational information contained below is based on the Company\u2019s unaudited expected results for the year ended December 31, 2017.\u00a0 All currency amounts are in United States dollars (\u201cUSD\u201d) unless otherwise stated.<\/p>\n
2017 Year-End Corporate Reserves Report<\/strong><\/p>\n\u201cWe continue to create shareholder value \u2013 more cash flow generated than we spend, increasing the value per share.\u00a0\u00a0 In 2017, our production per share on debt adjusted basis, grew 21% and our 2P reserves per share grew 47%.\u00a0 With our working capital of approximately USD$160 million, no debt and a reserve life index exceeding 11 years, we have multiple opportunities for continued growth\u201d stated Dave Taylor, Parex President & CEO. <\/p>\n
For the year ended December 31, 2017, Parex: \u00a0\u00a0 <\/p>\n
\n- Increased proved plus probable (\u201c2P\u201d) reserves by 45 percent year-over-year; 2P reserves grew from 112 million barrels of oil equivalent (\u00abMMboe\u00bb) at December 31, 2016 to 162 MMboe at December 31, 2017. 99% of 2P reserves are crude oil;\n<\/li>\n
- Achieved 2P finding & development costs (\u201cF&D\u201d) and 2P finding, development & acquisition costs (\u201cFD&A\u201d) of USD$4.73\/boe.\u00a0 The 2017 2P FD&A cash netback recycle ratio was 5.5 times using the unaudited fourth quarter 2017 funds flow from operations on a per barrel of oil equivalent (\u201cboe\u201d) basis of USD$26.25\/boe;\n<\/li>\n
- Realized 2P reserve replacement of 488% with total 2017 gross reserve additions of 63.3 MMboe;\n<\/li>\n
- Achieved proved developed producing (\u00abPDP\u00bb) FD&A of USD$7.50\/boe resulting in the proved producing FD&A recycle ratio of 3.5 times. Replaced 224% of production (13 MMboe) with PDP reserve additions of 29.1 MMboe;\n<\/li>\n
- Increased 2P reserve life index (\u00abRLI\u00bb) to 11.4 years, up from 9.9 years at year-end 2016, based on annualized estimated fourth quarter 2017 production of 39,007 boe per day (\u201cboe\/d\u201d);\n<\/li>\n
- Increased 2P after tax net present value discounted at 10 percent to USD$2.5 billion (CAD$3.1 billion) compared to USD$1.6 billion (CAD$2.1 billion) at December 31, 2016;\n<\/li>\n
- Expanded gross undeveloped drilling locations to 115, 158 and 191 wells in the proved (\u201c1P\u201d), 2P and proved plus probable plus possible (\u201c3P\u201d) cases, respectively; and\n<\/li>\n
- Increased 2017 annual average production to approximately 35,540 boe\/d, a 20% increase from 2016. Production for Q4 2017 averaged 39,007 boe\/d compared to 36,195 boe\/d in Q3 2017.\n<\/li>\n<\/ul>\n
2017 Year-End Reserves Report: Discussion of Reserves<\/strong><\/p>\nThe following tables summarize information contained in the independent reserves report prepared by GLJ dated February 2, 2018 with an effective date of December 31, 2017 (the \u00abGLJ 2017 Report\u00bb), with comparatives to the independent reserves report prepared by GLJ dated February 6, 2017 with an effective date of December 31, 2016 (the \u00abGLJ 2016 Report\u00bb), and the independent reserves report prepared by GLJ dated February 5, 2016 with an effective date of December 31, 2015 (\u00abGLJ 2015 Report\u00bb, and collectively with the GLJ 2017 Report and the GLJ 2016 Report, the \u00abGLJ Reports\u00bb). Each GLJ Report was prepared in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook (\u00abCOGE Handbook\u00bb) and National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities<\/em> (\u00abNI 51-101\u00bb). Additional reserve information as required under NI 51-101 will be included in the Company’s Annual Information Form which will be filed on SEDAR by March 30, 2018.\u00a0 Consistent with the Company\u2019s reporting currency, all amounts are in United States dollars unless otherwise noted.<\/p>\nThe recovery and reserve estimates provided in this news release are estimates only, and there is no guarantee that the estimated reserves will be recovered. Actual reserves may eventually prove to be greater than, or less than, the estimates provided herein. In certain of the tables set forth below, the columns may not add due to rounding.<\/p>\n
All December 31, 2017 reserves presented are based on GLJ’s forecast pricing effective January 1, 2018; all December 31, 2016 reserves presented are based on GLJ’s forecast pricing effective January 1, 2017; and all December 31, 2015 reserves presented are based on GLJ’s forecast pricing effective January 1, 2016.<\/p>\n
Parex\u2019 reserves are located in Colombia\u2019s Llanos and Middle Magdalena basins. Reserve additions in the GLJ 2017 Report were primarily generated from a successful 2017 oil exploration and appraisal drilling program.\u00a0 <\/p>\n
The Company recorded material increases in all reserve categories because of the following corporate activities:<\/p>\n
\n- Exploration discovery on the Cabrestero and LLA-34 blocks; and<\/li>\n
- Appraisal and development drilling on the Cabrestero, Capachos and LLA-34 blocks.\n<\/li>\n<\/ul>\n
2017 Year-End Gross Reserves Volumes<\/strong><\/p>\n\n\n\u00a0<\/strong><\/td>\nDecember 31,<\/strong><\/td>\nIncrease\u00a0<\/strong><\/td>\n| \u00a0<\/td>\n<\/tr>\n | \n\u00a0Reserves Category<\/strong><\/td>\n2015\u00a0
Mboe<\/strong>(1)\u00a0<\/sup><\/strong><\/td>\n2016\u00a0
Mboe(1)\u00a0<\/sup><\/strong><\/td>\n2017 <\/strong>
Mboe (1)(2)\u00a0<\/sup><\/strong><\/td>\n\u00a0 over
Dec 31, 2016\u00a0<\/strong><\/td>\n\u00a0<\/td>\n<\/tr>\n | \n| \u00a0Proved Developed Producing (PDP)<\/td>\n | 26,088<\/td>\n | 34,400<\/td>\n | 50,506<\/td>\n | \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 47<\/td>\n | %<\/td>\n<\/tr>\n | \n| \u00a0Proved Developed Non-Producing<\/td>\n | 593<\/td>\n | 1,087<\/td>\n | 2,089<\/td>\n | 92<\/td>\n | %<\/td>\n<\/tr>\n | \n| \u00a0Proved Undeveloped<\/td>\n | 19,325<\/td>\n | 28,285<\/td>\n | 42,930<\/td>\n | 52<\/td>\n | %<\/td>\n<\/tr>\n | \n\u00a0Proved (1P)<\/strong><\/td>\n46,006<\/strong><\/td>\n63,772<\/strong><\/td>\n95,525<\/strong><\/td>\n50<\/strong><\/td>\n%<\/strong><\/td>\n<\/tr>\n\n| \u00a0Probable<\/td>\n | 35,673<\/td>\n | 48,132<\/td>\n | 66,711<\/td>\n | 39<\/td>\n | %<\/td>\n<\/tr>\n | \n\u00a0Proved + Probable (2P)<\/strong><\/td>\n81,679<\/strong><\/td>\n111,904<\/strong><\/td>\n162,236<\/strong><\/td>\n45<\/strong><\/td>\n%<\/strong><\/td>\n<\/tr>\n\n\u00a0Possible(3)<\/sup><\/td>\n| 42,774<\/td>\n | 57,392<\/td>\n | 78,698<\/td>\n | 37<\/td>\n | %<\/strong><\/td>\n<\/tr>\n\n\u00a0Proved + Probable + Possible (3P)<\/strong><\/td>\n124,453<\/strong><\/td>\n169,297<\/strong><\/td>\n240,934<\/strong><\/td>\n42<\/strong><\/td>\n| %<\/strong><\/td>\n<\/tr>\n<\/table>\n <\/p>\n \n\n| \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| (1)<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | Mboe is defined as thousand barrels of oil equivalent.<\/td>\n<\/tr>\n | \n| (2)<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | All reserves are presented as Parex working interest before royalties.\u00a0 2017 net reserves after royalties are: PDP 43,031 Mboe, proved developed non-producing 1,907 Mboe, proved undeveloped 34,841 Mboe, 1P 79,780 Mboe, 2P 133,666 Mboe and 3P 197,842 Mboe.<\/td>\n<\/tr>\n | \n| (3)<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | Please refer to the \u201cReserve Advisory\u201d section for a description of each reserve category. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities recovered will equal or exceed the sum of proved plus probable plus possible reserves.<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n<\/table>\n <\/p>\n 2017 Gross Reserves by Block <\/strong><\/p>\n\n\n\u00a0Block <\/strong><\/td>\nProved<\/strong>
Mboe<\/strong><\/td>\nProved+<\/strong>
Probable<\/strong>
Mboe<\/strong><\/td>\nProved +\u00a0<\/strong>
Probable +\u00a0<\/strong>
Possible(1)\u00a0<\/sup><\/strong>
Mboe\u00a0<\/strong><\/td>\n<\/tr>\n\n| \u00a0Aguas Blancas<\/td>\n | 3,329<\/td>\n | 4,312<\/td>\n | 5,273\u00a0<\/td>\n<\/tr>\n | \n| \u00a0Cabrestero<\/td>\n | 8,612<\/td>\n | 12,675<\/td>\n | 17,831\u00a0<\/td>\n<\/tr>\n | \n| \u00a0Capachos <\/td>\n | 1,034<\/td>\n | 2,317<\/td>\n | 5,105\u00a0<\/td>\n<\/tr>\n | \n| \u00a0LLA-34<\/td>\n | 76,688<\/td>\n | 134,658<\/td>\n | 202,206\u00a0<\/td>\n<\/tr>\n | \n| \u00a0Other Blocks<\/td>\n | 5,862<\/td>\n | 8,274<\/td>\n | 10,519\u00a0<\/td>\n<\/tr>\n | \n\u00a0Total<\/strong><\/td>\n95,525<\/strong><\/td>\n162,236<\/strong><\/td>\n| 240,934\u00a0<\/strong><\/td>\n<\/tr>\n<\/table>\n <\/p>\n \n\n| \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| (1)<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | All reserves are presented as Parex working interest before royalties.<\/strong> Please refer to the \u201cReserve Advisory\u201d section for a description of each reserve category. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities recovered will equal or exceed the sum of proved plus probable plus possible reserves.<\/td>\n<\/tr>\n\n| \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n<\/table>\n <\/p>\n \n\n| \u00a0<\/td>\n<\/tr>\n | \n2017 Gross Year-End Reserves Volumes by Product Type<\/strong> (1)<\/sup><\/strong><\/td>\n<\/tr>\n\n\u00a0Product Type<\/strong><\/td>\nProved<\/strong>
Developed
Producing <\/strong><\/td>\nTotal
Proved <\/strong><\/td>\nTotal Proved
+ Probable\u00a0 <\/strong><\/td>\nTotal Proved+
Probable +
Possible <\/strong><\/td>\n<\/tr>\n\n\u00a0Light & Medium Crude Oil (Mbbl)(2)<\/sup><\/td>\n| 2,573<\/td>\n | 6,952<\/td>\n | 11,261<\/td>\n | 16,720<\/td>\n<\/tr>\n | \n| \u00a0Heavy Crude Oil (Mbbl)<\/td>\n | 47,771<\/td>\n | 86,923<\/td>\n | 148,626<\/td>\n | 221,014<\/td>\n<\/tr>\n | \n| \u00a0Natural Gas Liquids (Mbbl)<\/td>\n | 4<\/td>\n | 21<\/td>\n | 62<\/td>\n | 151<\/td>\n<\/tr>\n | \n\u00a0Conventional Natural Gas (MMcf)(3)<\/sup><\/td>\n| 950<\/td>\n | 9,775<\/td>\n | 13,724<\/td>\n | 18,291<\/td>\n<\/tr>\n | \n\u00a0Oil Equivalent (Mboe) <\/strong><\/td>\n50,506<\/strong><\/td>\n95,525<\/strong><\/td>\n162,236<\/strong><\/td>\n| 240,934<\/strong><\/td>\n<\/tr>\n<\/table>\n <\/p>\n \n\n| \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| (1)<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | All reserves are presented as Parex working interest before royalties.<\/strong> Please refer to the \u201cReserve Advisory\u201d section for a description of each reserve category. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities recovered will equal or exceed the sum of proved plus probable plus possible reserves.<\/td>\n<\/tr>\n\n| (2)<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | Mbbl is defined as thousands of barrels<\/td>\n<\/tr>\n | \n| (3)<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | MMcf is defined as one million cubic feet<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n<\/table>\n Five Year Crude Oil Price Forecast \u2013 GLJ Report (January 2017 and 2018)<\/strong><\/p>\n\n\n| \u00a0<\/td>\n | \u00a0<\/strong><\/td>\n
2017<\/strong><\/td>\n2018<\/strong><\/td>\n2019<\/strong><\/td>\n2020<\/strong><\/td>\n2021<\/strong><\/td>\n2022<\/strong><\/td>\n<\/tr>\n\n| \u00a0ICE Brent (USD$\/bbl) – January 1, 2017<\/td>\n | \u00a0<\/td>\n | 57.00<\/td>\n | 61.00<\/td>\n | 66.00<\/td>\n | 70.00<\/td>\n | 74.00<\/td>\n | 77.00<\/td>\n<\/tr>\n | \n| \u00a0ICE Brent (USD$\/bbl) – January 1, 2018<\/td>\n | \u00a0<\/td>\n | \u00a0 \u00a0 54.75(1)<\/sup><\/td>\n| 65.50<\/td>\n | 63.50<\/td>\n | \u00a063.00<\/td>\n | 66.00<\/td>\n | 69.00<\/td>\n<\/tr>\n<\/table>\n <\/p>\n \n\n| \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| (1)<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | Actual 2017 ICE Brent average price\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n<\/table>\n Reserves Net Present Value Before Tax Summary<\/strong> (1)(2)<\/sup><\/strong><\/p>\n\n\n\u00a0Reserves Category<\/strong> <\/td>\n| \u00a0<\/td>\n | NPV10\u00a0<\/strong>
December\u00a0<\/strong>
31, 2016\u00a0<\/strong>
(000s)<\/strong>(2)\u00a0<\/sup><\/strong><\/td>\nNPV10\u00a0<\/strong>
December\u00a0<\/strong>
31, 2017\u00a0<\/strong>
(000s)<\/strong>(2)\u00a0<\/sup><\/strong><\/td>\nNPV10\u00a0<\/strong>
December\u00a0<\/strong>
31, 2017
(CAD\/sh)(3)\u00a0<\/sup><\/strong><\/td>\n<\/tr>\n\n| \u00a0Proved Developed Producing (PDP)<\/td>\n | $<\/td>\n | 765,431\u00a0<\/td>\n | 1,345,509\u00a0<\/td>\n | \u00a0<\/td>\n | –\u00a0<\/td>\n<\/tr>\n | \n| \u00a0Proved Developed Non-Producing<\/td>\n | \u00a0<\/td>\n | 19,659\u00a0<\/td>\n | 43,751\u00a0<\/td>\n | \u00a0<\/td>\n | –\u00a0<\/td>\n<\/tr>\n | \n| \u00a0Proved Undeveloped<\/td>\n | \u00a0<\/td>\n | 466,845\u00a0<\/td>\n | 827,291\u00a0<\/td>\n | \u00a0<\/td>\n | –\u00a0<\/td>\n<\/tr>\n | \n\u00a0Proved (1P)<\/strong><\/td>\n$<\/strong><\/td>\n1,251,936\u00a0<\/strong><\/td>\n2,216,550\u00a0<\/strong><\/td>\n$<\/strong><\/td>\n18.01\u00a0<\/strong><\/td>\n<\/tr>\n\n| \u00a0Probable<\/td>\n | \u00a0<\/td>\n | 1,000,543\u00a0<\/td>\n | 1,401,168\u00a0<\/td>\n | \u00a0<\/td>\n | –\u00a0<\/td>\n<\/tr>\n | \n\u00a0Proved + Probable (2P)<\/strong><\/td>\n$<\/strong><\/td>\n2,252,479\u00a0<\/strong><\/td>\n3,617,718\u00a0<\/strong><\/td>\n$<\/strong><\/td>\n29.39\u00a0<\/strong><\/td>\n<\/tr>\n\n\u00a0Possible(4)<\/sup><\/td>\n| \u00a0<\/td>\n | 1,183,673\u00a0<\/td>\n | 1,599,977\u00a0<\/td>\n | \u00a0<\/td>\n | –\u00a0<\/td>\n<\/tr>\n | \n\u00a0Proved + Probable + Possible (3P)<\/strong><\/td>\n$<\/strong><\/td>\n3,436,152\u00a0<\/strong><\/td>\n5,217,695\u00a0<\/strong><\/td>\n$<\/strong><\/td>\n| 42.39\u00a0<\/strong><\/td>\n<\/tr>\n<\/table>\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |