Parex Provides Production Update Related to Colombian Blockades

CALGARY, Alberta, May 17, 2021 (GLOBE NEWSWIRE) -- Parex Resources Inc. (“Parex” or the “Company”) (TSX:PXT) is a company headquartered in Calgary that focuses on sustainable, profitable, conventional oil and gas production.

Production Guidance Revised Due to Transportation Blockades

A series of protests across Colombia during May 2021 have resulted in transportation blockades that have restricted the production and marketing of Parex’ crude oil. Additionally, the transportation blockades impeded the supply of materials required for capital expenditure activities, including drilling and completions. The blockades were not directly related to Parex’ activities or those of its industry partners.

Parex net production over the past week has averaged approximately 31,000 boe/d, with current production approximately 40,000 boe/d. Going forward we expect to continue restarting our normal operations and production, subject to the lifting of blockades in the Llanos Basin. In that respect we note that the local government and authorities have been proactive in working to lift the blockades and minimize the disturbances. Further, in many instances Parex has continued to receive the support of the communities where we operate, live and work.

Although the current restrictions from the transportation blockades are easing, Parex is withdrawing its Q2 2021 production guidance, as set forth in the press release dated April 15, 2021, until the Company has greater visibility on its ability to access the local transportation infrastructure. For the period April 1 - May 16, 2021, Parex' production has averaged approximately 44,100 boe/d. Also, Parex is updating its H2 2021 production guidance set forth in the press release dated April 15, 2021 at 48,000 – 50,000 boe/d, with Parex expecting H2 2021 production to average 44,000-50,000 boe/d, with the lower end of the range incorporating the impact of any additional minor and intermittent blockades.

Operations Update – Upcoming Activity May 2021

As noted above, a series of national strikes across Colombia have resulted in transportation blockades that have temporarily restricted supplies to our drilling and completions activities. However, Parex is proactively planning to resume the following exploration and growth activities, subject to the transportation blockades being lifted.

Block	Activity Description
Cabrestero	4-6 well program – start drilling late May 2021
VIM-1	Drill the 1st of 2 high impact exploration wells (Basilea) following the La Belleza discovery – spud week of May 17 2021
LLA-32	Drill the Groot exploration well – spud week of May 17 2021
VMM-46	Commence acquisition of 215 square km of 3D seismic – in field early June 2021

2021 Share-buy Back Program: Committed to 10% Repurchase