from SNL Energy Finance Daily
Parex Resources restarts exploration program, nears completion of share buybacks
Byline: Dan Carino Jr.
Parex Resources Inc. has reactivated its development and exploration program and increased its maximum daily cumulative share purchase amount under its normal course issuer bid to 111,500 shares.
The Canadian oil and gas producer's program will focus on growth opportunities through the Fortuna Block, Boranda Block and Block LLA-94 in Colombia, according to an Oct. 5 news release. Capital spending for the year is expected to be around $130 million to $145 million.
The company had previously announced plans to gradually increase its oil and gas production and restart capital spending after curtailing its second-quarter oil and gas production volumes as part of its response to the COVID-19 pandemic.
The company said it has repurchased 7.5 million shares under the normal course issuer bid and has 137.0 million basic shares outstanding, compared to 155.0 million as of Jan. 1, 2019. Parex expects to purchase the maximum allowable 13.98 million shares under the normal course issuer bid before it expires in December.
Parex sees share buybacks as a tool to acquire high-quality proven barrels that generate more than twice the recycle ratio at current Brent strip pricing. Parex commenced the normal course issuer bid in 2019.
