Q4 Guidance Increase With LLA-34 Drilling Success - Seite 2

Capachos (WI 50%): Parex is currently drilling the Capachos-2 well at 15,200 feet and is expected to reach its target depth in approximately 7 days.  Following the Capachos-2 well, Parex expects to immediately drill the Capachos Sur-2 appraisal well and subsequently the Capachos Norte-1 well.  

Aguas Blancas (WI 50%): Parex continues to advance its assessment of the Aguas Blancas field.   The water flood pilot began in July 2017 on the AB-5 pad located on the west side of the main fault and approximately 50,000 barrels of water have been injected at a rate of 600 barrels of water per day which is within expectations. Current production from Aguas Blancas is approximately 350 bopd. Assessment of the water flood pilot performance will continue with the goal of assessing the viability and recovery factor expected from full scale waterflood development in early 2018.  Additional delineation of the western portion of the Aguas Blancas field is expected to commence during the first half of 2018 when additional surface drilling pads become accessible.    

VMM-11 (WI 100%): The exploration well Niagara-1 was spud October 4, 2017 and the well has a target depth of 8,900 feet to test a new play concept.  The next exploration well is scheduled to be Iguazu-1.  

The Glauca-1 and Glauca-2 exploration wells were drilled and both wells encountered oil bearing reservoir in the Esmeraldas formation.  Testing of the wells required an effective cleanout of sand from the wellbore.  After cleaning out the sand in the Glauca-2 wellbore, over a 50 hour test, the well produced a total of 654 barrels (314 bopd) of 15.3 API oil with no reported water production. Bottom hole pressure recorders have been installed and following the data evaluation, we expect to begin production. The service rig is now returning to the Glauca-1 well to repeat the same completion process. Parex will continue to optimize completion techniques for the Glauca development planned for 2018. 

This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction.

For more information, please contact:

Mike Kruchten
Vice-President Capital Markets & Corporate Planning
Parex Resources Inc.
Phone: [phone]
[e-mail]