09:06 AM EDT, 04/11/2024 (MT Newswires) -- Parex Resources Inc. ( PARXF ) said Thursday that it signed definitive agreements with partner Ecopetrol SA to consolidate their holdings along the Llanos Foothills trend, aligning with the Colombian government's goal to secure gas supply and support energy transition initiatives.

According to a statement, Parex and Ecopetrol are "now strategically positioned" with eight blocks, along with the creation of a mutual area of interest, to capitalize on the a 500-kilometer geological trend and explore for new sources of domestic gas and liquids. Parex said the trend boasts "world-class discoveries at both ends", which cumulatively have produced over 1.4 million barrels of oil and about 4 trillion cubic feet of natural gas. The middle of the trend is largely unexplored, the company added.

"After extensive joint efforts, Parex and Ecopetrol are proud to announce the execution of definitive agreements to explore the high-potential Foothills of Colombia and harmonize our respective land positions," President and CEO Imad Mohsen said.

"Over the last three years, Parex has strategically strengthened our asset portfolio, such as carrying out the Arauca & LLA-38 farm-in and acquiring 18 new blocks in the 2021 Colombia bid round. This further partnership with Ecopetrol is a continuation of those efforts to expand and high-grade our portfolio as we focus on executing near-field exploration prospects -- while concurrently drilling high-impact targets with step-change potential."

Parex lost 1.9% yesterday.