RE: Note: Capella protest background21 Mar 2023 10:06
https://www.globenewswire.com/news-release/2023/03/08/2623583/0/en/Parex-Resources-Announces-Record-2022-Full-Year-Results.html
Production Update
Northern Llanos - Arauca and Capachos Blocks (50% W.I.) Update
In the Northern Llanos, on January 21, 2023, the Company proactively shut-in its Capachos Block (50% W.I.) and halted drilling operations at the Arauca Block (50% W.I.), due to heightened security concerns related to peace talks at the Federal Government level in Colombia.
The Company is supportive of the peace process and is proactively working to resume operations by engaging stakeholders at all levels. Recent actions taken by Parex to address the current situation include:
Participating in ongoing meetings and discussions with federal and regional authorities;
Ongoing engagement with local communities and leadership; and
Maintaining business and operational readiness to resume activities once it is safe to do so.
The Company's top priority remains the safety of its employees and contractors. If a timely resolution does not ensue, mitigation plans
will be implemented and updated corporate guidance would be provided in due course.
2023 Corporate Guidance Update
For the period of January 1, 2023, to February 28, 2023, estimated average production was approximately 50,700 boe/d; production was affected by the current suspension of operations in the Northern Llanos, specifically Capachos (approximately 6,500 boe/d net impact), less than expected production from LLA-34 (55% W.I.), as well as delays in the start of rig activity at VIM-1 (50% W.I.) and LLA-26 (100% W.I.).
In March 2023, excluding the Northern Llanos (Arauca and Capachos Blocks) area, the Company expects to bring 3,000 to 5,000 boe/d of incremental net production on stream from LLA-26 (100% W.I.), VIM-1 (50% W.I.), and LLA-34 (55% W.I.).
Parex’s average production guidance of 57,000 to 63,000 boe/d for FY 2023 had been widened relative to previous years in order to better account for above ground factors that can at times impact Colombian operations.
Parex's 2023 activity plan continues to progress strongly and thus the Company expects to be within its 2023 annual average
production guidance range in Q2 2023 and for the FY 2023, assuming a timely resolution at Northern Llanos.
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