Report

Update: Impressive growth delivered and set to continue

We expect an impressive half-year 80% increase in 2P reserves to 57.6mmboe, along with a 29% year-on-year increase in quarterly production to 19.9mb/d in Q214, reported by Parex, to fuel cash flow into 2015e. We now look to an increase in expenditure and activity in the second half of the year to continue to create new opportunities for Parex in Colombia. Our revised valuation, which accounts for half-year revisions, finds core NAV at C$17.2/share, a significant increase from our previous C$10.0/share and well below current trading levels.
Underlying
Parex Resources Inc.

Parex Resources is engaged in oil and natural gas exploration, development and production in South America and the Caribbean region. As of Dec 31 2010, Co. had gross proved light and medium oil reserve of 1,066 thousand barrels (net: 980 thousand barrels).

Provider
Edison Investment Research
Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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