EDISON EQUITY RESEARCH - PAREX RESOURCES

EDISON EQUITY RESEARCH: PAREX RESOURCES - LEANER AND POISED FOR GROWTH

 Parex heads into an active 2015 backed by a solid set of Q3 financial and operational results. The plan calls for 16 development wells, 17 exploration wells and US$30m of 3D seismic, all part of an announced 39-well, US$330m capex programme. Parex boasts a reduced debt profile in Q314 along with a US$175m credit line, which will be made available as required. We believe Parex’s recent 27% production growth spurt will not go unnoticed in the Colombian oil patch, with new growth opportunities above and beyond published guidance seen as a very real possibility in the current lower oil price environment.

 Parex Resources is engaged in oil and gas exploration and production in Colombia and Trinidad. Parex holds interests in 23 exploration blocks with assets in Llanos Basin and Magdalena Basins, Colombia and onshore Trinidad. Parex is the result of a 2009 spinout from Petro Andina.

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