Colombia's Ecopetrol to sell share in Capachos block to Parex

May 13, 2014

Colombia's state-run oil company Ecopetrol said on May 12 it had reached a deal to sell a 50 percent stake in its Capachos oil block to Canadian-listed Parex Resources Inc, which would be the operator, Reuters has reported.

Parex will pay the full cost of the first two wells to be developed on the block under the terms of the deal reached on May 5, Ecopetrol said in a statement.

Ecopetrol said the Capachos block in Colombia's eastern plains may contain light crude at a depth of around 16,000 feet. Drilling would start in the first quarter of 2015 under the terms of the deal which must still be approved by the National Hydrocarbons agency.

Copyright: Reuters, 2014