Canadian oil company Parex Resources announced it will acquire a company which holds 50% of the interests that Parex does not already own in four blocks of the Llanos Basin in eastern Colombia, according to a company press release.
Reuters reported that the company to be acquired is Remora Energy International, a Bermuda based exploration and production company and parent company of Columbus Energy Sucursal Colombia, which currently holds interests in 11 blocks in the Llanos and Putumayo Basins, covering almost 1 million acres in east-central and southern Colombia respectively.
The cost of the acquisition is reportedly $255 million. Parex, which is already conducting exploration activities on a 595,000 acre holding in the Llanos Basin, announced Wednesday that test results from the Kona-2 well gave a test rate of 2,634 barrels of oil a day.
Parex, which operates in Colombia and Trinidad, said it expects to double its 2011 exit output at 14,000 barrels of oil per day. It also forecasts that its capital budget for Colombian operations will increase by $30-35 million.
The acquisition is expected to be completed by June 29.