Parex Resources has signed an agreement with Ecopetrol to acquire a 50% participating stake in the Casabe and Llanito blocks in Colombia's Magdalena Basin.
In return, the Canadian oil and gas company has committed to a $250m investment programme over five years, with $125m allocated as carry capital.
The Casabe and Llanito blocks are currently producing approximately 14,900 barrels per day (bpd) of medium crude oil.
The concessions have more than three billion barrels (bbbl) of estimated original oil in place, with an average recovery rate below 15%.
The agreement was structured with no upfront acquisition cost, entitling Parex to a 50% share of production, contingent upon the execution of the capital development programme.
Following completion of phase one and approval from Colombia’s National Hydrocarbons Agency, capital expenses will be equally divided between the two entities.
The mature fields in the blocks, supported by reprocessed 3D seismic data, offer potential for increased production through horizontal drilling, repatterning, and waterflood optimisation. Enhanced recovery techniques like polymer and CO₂ injection also offer additional production upside.
Existing infrastructure including processing facilities and pipeline access to Ecopetrol’s Barrancabermeja refinery supports further development and maximises economic returns.
The agreement enhances near-field exploration opportunities and offers pathways to optimise per-unit operating costs.
It also complements Parex’s track record of improving recovery rates, demonstrated at other projects like Cabrestero and LLA-34.
Following the fulfilment of necessary conditions including regulatory consent, Parex will start participating in both base and incremental production upon meeting its investment obligations.
Parex anticipates starting its base production involvement by drilling the first well in the second half of 2026.
The company will manage all upcoming drilling and capital projects, while Ecopetrol will continue to oversee current and future production operations.
In March 2026, Frontera signed a definitive agreement with Parex for the sale of its Colombian exploration and production assets in a deal worth $750m, inclusive of debt. The deal is expected to close in the second quarter of 2026.
