Parex Operational Update & Industry Leading Share Buy-Back Program

CALGARY, Alberta, Jan. 11, 2021 (GLOBE NEWSWIRE) -- Parex Resources Inc. (“Parex” or the “Company”) (TSX:PXT), is a company headquartered in Calgary, Alberta that focuses on sustainable, profitable, conventional oil and gas production. All currency amounts are in United States dollars, unless otherwise stated.

Operational Update

• Production: Q4 2020 average production is estimated at 46,550 boe/d compared to Parex’ guidance of 45,500-47,500 boe/d. We expect Q1 2021 production to average 46,500-47,500 boe/d;
• VIM-1 Block (50% WI, Operator): Parex received regulatory approval to extend the current block boundaries by 32,000 acres to the east onto adjacent open lands based on the estimated extent of the 2020 La Belleza discovery, in exchange for a commitment to drill one exploration well. In Q2 2021 Parex anticipates commencing a two well exploration drilling program to further assess the VIM-1 block;
• Awarded Two Prospective Colombian Blocks: Total work commitment approximately $4.5 million for 95 km2 of 3D seismic.
  • LLA-134: located south-east of the prolific LLA-34 block and adjacent to the CPO-11 and CPO-5 blocks, targeting stratigraphic plays;
  • VIM-43: located north-east of the VIM-1 La Belleza discovery, targeting a structural/stratigraphic play;
• Fortuna Block (100% WI, Operator): Parex drilled the horizontal exploration well Cayena-1 to a depth of 8,560 feet and logged potential oil-bearing zones in multiple formations. The Company then successfully drilled 3,042 feet horizontally in the shallower Galembo Formation, encountering oil shows in the horizontal section. As part of the completion process, Parex is importing specific coil tubing equipment that is required to recover completion fluid from the wellbore prior to finishing testing. We expect to conclude the testing in Q1 2021;
• Boranda Block (50% WI, Operator): The Boranda Sur-1 appraisal well, located 2.6 kilometers to the southwest of the Boranda-3 discovery is currently being drilled. The appraisal well objectives are to confirm areal extent, thickness, and fluid content of the reservoirs encountered in the nearby producing Boranda field;
• Crude Quality Discount: Parex continues to realize strong crude oil pricing. The Brent/Vasconia differential is currently approximately $2/bbl. This compares to the Q3 2020 Brent/Vasconia differential of $2.99/bbl;
• Industry Leading Balance Sheet: Parex estimates a cash position of $325 million as of December 31, 2020. The Company remains debt-free with an undrawn credit facility of $200 million.