Parex Resources provides November operational update

During the month, corporate production was affected by downtime that resulted in average production of 44,700 boe/d. The primary drivers of heightened downtime were electrical interruptions at Cabrestero, as well as social factors at LLA-32 and Capachos. While LLA-32 has regained full operational status, beginning November 28, 2024, ongoing social protests have caused the Company to temporarily shut in operations at Capachos. For the period of December 1, 2024, to December 9, 2024, estimated average production was 42,800 boe/d with lower production primarily due to the aforementioned shut-in at Capachos. Based on recent constructive dialogue, the Company expects a near-term resolution that will enable Capachos operations to resume. Parex’s production guidance incorporates contingencies for downtime events. At current production levels, the Company expects to achieve its FY 2024 average production guidance of 49,000 to 50,000 boe/d. As previously announced, Parex had drilled the well to a depth of roughly 17,750 feet. Since that announcement, the well was drilled to approximately 18,000 feet; during operations to set the final liner in place above the zones of interest, a mechanical issue emerged during the cementing process. After a thorough evaluation by the Company and its partner, it was determined that further operations on the well were technically unfeasible at an acceptable risk tolerance. The well will be abandoned, with an estimated total cost net to Parex of approximately $35 million. The Llanos Foothills of Colombia remain a core component of Parex’s long-term strategy, and drilling the Arantes well resulted in improved drilling proficiency and additional subsurface knowledge that can be utilized for future exploration wells.