Parex Q2 - Positive Read Through For PTA Los Ocarros Block (operated 50 percent working interest)
Since April 2012, the Las Maracas-2ST well has produced at a rate of approximately 1,000 bopd of 37 degrees API oil from the Mirador Formation. The Las Maracas-3 well was spud June 28, 2012 and encountered oil pay in the Mirador and Gacheta formations. The Gacheta Formation tested oil and an electro-submersible pump ("ESP") was installed and is currently producing approximately 2,000 bopd of 30 degrees API oil. Las Maracas-4 was spud on July 30, 2012 and has reached its target depth with prospective oil pay in the Mirador and Gacheta formations. Parex expects to drill two additional appraisal wells prior to year-end to appraise both the Mirador and Gacheta formations at Las Maracas, subject to partner and regulatory approvals.
El Eden Block (operated 60 percent working interest)
Construction for the La Casona-1 exploration prospect has commenced and we expect the well to spud in September 2012, with drilling planned to a depth of 16,000 feet.
Remainder of 2012 Planned Drilling Activity:
Drilling Type Block Working Interest Field/Well
----------------------------------------------------------------------------
Appraisal LLA-34 45% Max-2
Appraisal LLA-34 45% Tua-3
Appraisal Los Ocarros 50% Las Maracas-5
Appraisal Los Ocarros 50% Las Maracas-6
----------------------------------------------------------------------------
Exploration LLA-16 100% Maragogi-1
Exploration LLA-16 100% Kona Sur
Exploration El Eden 60% La Casona-1
Exploration Cabrestero 50% Akira-1