Parex announced that it has entered into an agreement with Ecopetrol (ECP-TSX), whereby Parex will farm-in to operate and earn a 50% WI in the Aguas Blancas light oil field located in the Middle Magdalena Basin of Colombia. While details are still fairly scarce at the moment, we have made some conservative assumptions and estimate that the farm-in transaction has a risked value of $1.19 per share for Parex shareholders. As such, our target price has been increased to $13.00 per share.