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Parex Resources Inc T.PXT

Alternate Symbol(s):  PARXF

Parex Resources Inc. is a Canada-based independent oil and gas company in Colombia, focusing on sustainable, conventional production. The company is engaged in the business of the exploration, development, production and marketing of oil and natural gas in Colombia. The Company is focused on development in two main basins: Llanos and Magdalena.


TSX:PXT - Post by User

Bullboard Posts
Post by poneon Jun 14, 2015 7:44pm
99 Views
Post# 23829419

Selling Off Properties?

Selling Off Properties?Parex has the unusual quality that it declares 1P reserves faster than it can produce them.   At this point the reserve growth is impressive and Parex has had the financial discipline to not produce and explore faster than the limit of its operational cash flow.

My question is why doesn't Parex sell off some of its properties at a premium price, thus producing cash for production.   This would bring the ratio of reserves to production into a better balance, while providing the cash required to increase production on the remaining properties.

What are some good reasons Parex should NOT do this?
Bullboard Posts