CA - Parex Resources abandons Colombia well after tests show no hydrocarbons

2023-07-17 11:51:19 ET

Parex Resources ( OTCPK:PARXF ) -6.2% in Monday's trading after saying it abandoned its Chirimoya exploration well in Colombia after finding it contained no economic hydrocarbons.

Parex ( OTCPK:PARXF ) said it abandoned the well at the onshore VIM-43 block following evaluation after reaching a depth of 17.5K ft.

The Chirimoya well was the first prospect in a three-well 2023 exploration program, with the Northern Llanos Arauca-8 and Llanos Foothills Arantes-1 wells expected to be spud in Q4.

"While we believe the company's fundamental operational and financial outlook is unaffected with this result, we expect shares to come under pressure today due to speculation of a positive well result," Stifel analyst Cody Kwong wrote, according to Bloomberg.

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• Stock price return: Up 45.5% YTD, up 43% in the past 12 months

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