Parex Resources (TSX:V.PXT, Stock Forum) has had a good year so far and as a result of the first six months of fiscal 2014, the company was able to announce an increased production guidance and operational update.
According to the news release, there was a material increase in all reserve categories with a proved plus probable (“2P') reserves increase of 80% from 32.0 million million barrels of oil equivalent (“Mmboe”) listed on December 31, 2013 to 57.6 Mmboe as of June 30, 2014.
Gross undeveloped drilling locations grew to 47, 78 and 99 wells in the proved (“1P”), 2P and proved plus probable plus possible (“3P”) cases.
The company anticipates the Q4 2014 production exit rate to exceed approximately 27,000 barrels of oil per day (“bopd”) compared to the Q2 2014 production exit rate of approximately 23,500 bopd.
Parex Resources was in the news recently when the company announced the closing of the Verano acquisition at the end of June.
Shares gained 16.05% on the news to $14.75 per share.
Currently there are 125.2m outstanding shares with a market cap of $1.8 billion.