11:41 AM EDT, 08/29/2024 (MT Newswires) -- Parex Resources ( PARXF ) shares plunged by nearly a third after the Colombian oil and gas producer late Wednesday said its production quarter-to-date is under target as it withdrew its three-year plan and lowered its guidance.

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

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

Parex lowered 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 drop for Arauca and further declines in other production areas.

The company has withdrawn its three-year plan for the 2024-2026 period due to Arauca's underperformance, with drilling and results materially lower than management's expectations.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.

As well, Sanjay Bishnoi resigned as the company's 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.

Parex shares were last seen down $4.94 to $12.32 on the Toronto Stock Exchange, the lowest since April, 2020.

Price: 12.35, Change: -4.91, Percent Change: -28.45