Parex Resources Announces Approval of Normal Course Issuer Bid and Automatic Share Purchase Plan

CALGARY, Alberta, Dec. 19, 2019 (GLOBE NEWSWIRE) -- Parex Resources Inc. ("Parex" or the "Company") (TSX:PXT) announced today that the Toronto Stock Exchange (the "TSX") has approved the Company commencing a normal course issuer bid (the "Bid").

Pursuant to the Bid, Parex will purchase for cancellation, from time to time, as it considers advisable, up to a maximum of 13,986,994 common shares of the Company. The Bid will commence on December 23, 2019 and will terminate on December 22, 2020 or such earlier time as the Bid is completed or terminated at the option of Parex.

The maximum number of common shares to be purchased pursuant to the Bid represents 10% of the public float, as of December 9, 2019. Purchases pursuant to the Bid will be made on the open market through the facilities of the TSX and/or alternative trading systems. The number of common shares that can be purchased pursuant to the Bid is subject to a daily maximum of 135,080 common shares (which is equal to 25% of the average daily trading volume from June 1, 2019 to November 30, 2019). The price that Parex will pay for any common shares under the Bid will be the prevailing market price on the TSX at the time of such purchase. Common shares acquired under the Bid will be cancelled.

Peters & Co. Limited has agreed to act on the Company's behalf to make purchases of common shares pursuant to the Bid.

A copy of the Form 12 Notice of Intention to Make a Normal Course Issuer Bid filed by the Company with the TSX can be obtained from the Company upon request without charge.

Parex believes that the common shares have been trading in a price range which does not adequately reflect their value in relation to the Company's current operations and its growth prospects, and that, at such times, the purchase of common shares for cancellation will increase the proportionate interest of, and be advantageous to, all remaining shareholders.

As of the close of business on December 9, 2019, the Company had 143,000,170 common shares issued and outstanding and a public float of 139,869,944.

Pursuant to a previous notice of intention to conduct a normal course issuer bid, under which the Company sought and received approval of the TSX to purchase 15,041,319 Common Shares for the period from December 21, 2018 to December 20, 2019, the Company purchased 15,041,319 Common Shares on the open market at a weighted average price of $20.04 per Common Share.