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    Does Parex Resources (TSX:PXT) 100% Funding Llanos Wells Reframe Its Colombia Risk‑Reward Profile?

    Simply Wall St·12/13/2025 17:19:19
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    • Parex Resources Inc. and Ecopetrol S.A. recently reported that their Llanos Foothills exploration alliance is now fully in place, with regulatory approvals secured to drill the Floreña Huron well on the Niscota block and the Farallones prospect, alongside October–November 2025 production averaging just over 50,000 boe/d at its peak.
    • An interesting angle for investors is that Parex has agreed to fund the Floreña Huron and Farallones exploration wells at 100% of capital costs in exchange for a 50% stake in future production from the extended Piedemonte area, sharpening both the upside and the risk profile of its Colombian growth plans.
    • We’ll now examine how Parex’s full-cost commitment to key Llanos Foothills wells could reshape its investment narrative and risk-reward profile.

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    Parex Resources Investment Narrative Recap

    To own Parex Resources, you need to believe its Colombia focused portfolio can keep converting near field and frontier exploration into sustainable production and cash returns, despite political and regulatory risk. The Llanos Foothills alliance update does not alter the near term production catalyst materially, but it does make the exploration risk around Niscota and Farallones more central to the story.

    Against this backdrop, Parex’s reaffirmed 2025 production guidance of 43,000 to 47,000 boe/d, supported by recent October and November volumes above 49,000 boe/d, gives investors a clearer operational baseline as the company steps into higher cost, higher impact drilling in the Foothills. That guidance context matters when thinking about how much room Parex has to absorb dry hole risk while still funding capital intensive wells like Floreña Huron on a 100 percent basis.

    Yet investors should also be aware that concentrated exposure to Colombian regulation and licensing means...

    Read the full narrative on Parex Resources (it's free!)

    Parex Resources’ narrative projects $956.5 million revenue and $243.7 million earnings by 2028.

    Uncover how Parex Resources' forecasts yield a CA$19.80 fair value, a 10% upside to its current price.

    Exploring Other Perspectives

    TSX:PXT 1-Year Stock Price Chart
    TSX:PXT 1-Year Stock Price Chart

    Nine Simply Wall St Community fair value estimates for Parex span a wide band from CA$12.72 to CA$244.31, underscoring how far apart individual views can be. Set against this, the company’s commitment to fund key Llanos Foothills wells at 100 percent of capital costs concentrates both exploration upside and execution risk, which could have meaningful implications for future cash flows and perceived resilience.

    Explore 9 other fair value estimates on Parex Resources - why the stock might be worth 29% less than the current price!

    Build Your Own Parex Resources Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.