06:49 AM EDT, 08/29/2024 (MT Newswires) -- Parex Resources ( PARXF ) late on Wednesday said its current average production quarter-to-date decreased and that it is withdrawing its three-year plan.

The company reported quarter-to-date average production of about 47,600 barrels of oil equivalent per day (boe/d). Parex attributed the lower current average production to rapid productivity decline at Arauca and slower-than-expected volume additions and declines from LLA-32, among other factors.

The company said it is taking steps to resolve current underperformance. Actions include decreasing capital expenditures where possible, reevaluating the portfolio to refine and prioritize lower-risk development and targeting sizable mature fields through farm-ins.

Parex also revised downward its 2024 production guidance to 49,000 boe/d from the previous guidance of 57,000 boe/d, driven by a 4,000-boe/d output decrease in Arauca and further decreases in other production areas.

The company has withdrawn its three-year plan for the 2024-2026 period due to Arauca underperformance, with drilling and results materially lower than management's expectations. Parex is assessing its short- and long-term development and exploration opportunities as it goes through the 2025 budgeting and planning process.

Sanjay Bishnoi resigned as chief financial officer, effective Sept. 20. Parex has hired an executive recruitment firm to find a replacement. The company's board appointed Cameron Grainger as interim CFO during the transition period. Grainger previously served as controller at the company.