Parex Operational Update

Q2 Production Exceeds 27,000 bopd and Expansion of Rumba Oil Discovery

CALGARY, AB--(Marketwired - July 06, 2015) -

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Parex Resources Inc. ("Parex" or the "Company") (TSX: PXT), a company focused on Colombian oil exploration and production, provides an operational update.

Operational Highlights

• Grew Q2 (April 1-June 30, 2015) average oil production to 27,025 barrels of oil per day ("bopd") compared to production guidance of 26,500 bopd and an increase from the prior period production of 26,729 bopd;
• • Commenced production at the Rumba exploration discovery from the Mirador Formation on June 20, 2015 (Block LLA-26, 100% WI). The Rumba-1 well is producing at an initial restricted rate of approximately 1,000 bopd of 19 API oil with a water cut of less than 1%;
  • Drilled Rumba-2, an appraisal follow-up to Rumba-1 on June 19, 2015. Rumba-2 was programmed to evaluate the Mirador formation approximately 1 kilometer north-east of Rumba-1. Initial interpretation suggests that the primary objective Mirador formation appears to be connected and higher to Rumba-1. The drilling rig has initiated completion operations on Rumba-2 and we plan to use the current drilling rig to drill at least one additional well on the existing pad;
  • Abandoned drilling of the exploration Bazar-1 (Block LLA-26, 100% WI) due to mechanical problems in the Leon/C1 formations. Using the same drilling pad as Rumba-1, Bazar-1 targeted the Une Formation with a planned horizontal departure of 2.2 kilometers and a wellbore deviation in excess of 60 degrees. Parex has applied to have Bazar-1 classified as the second and final current phase commitment well on Block LLA-26. The Company has re-designed a new drilling program to target the deeper Une Formation and expects to drill the Bazar-2 exploration well prior to year-end 2015;
  • Drilled and abandoned the Zorro Rojo (LLA-20, WI 100%) exploration commitment well. Parex has fulfilled all outstanding work program commitments on Block LLA-20;
  • Capachos production contract ("Convenio") has been awarded to Ecopetrol S.A. by the National Hydrocarbon Authority ("ANH"), fulfilling a key condition of Parex' farm-in agreement. Subject to regulatory approval, Parex will have 50% working interest and operatorship on the Capachos Block and will pay 100% of the cost of drilling two development wells. The Company is now initiating community dialogue and civil construction with the first well expected to spud in Q4 2015;
  • Sanctioned Adalia field (LLA-30, 100% WI) secondary recovery project with water-flood injections commencing in Q4 2015;
  • Accelerated 2015 exploration program. Three drilling rigs are currently working on three blocks: LLA-32 (mobilizing), LLA-34 (drilling Chachalaca-1) and LLA-26 (completing Rumba-2); and
  • Approved a 405 square kilometer 3D seismic program for Lower Magdalena Basin Block VIM-1 (100% WI). The work program is to begin in Q4 2015 and is expected to define the 2016 drillable prospects. Accelerating the 3D seismic program into 2015 allows Parex to acquire seismic information at approximately a 50% lower cost on a per unit basis than in 2014.

2015 Drilling Operations Schedule: