Mr. Imad Mohsen reports

PAREX RESOURCES ANNOUNCES FIRST QUARTER RESULTS, DECLARATION OF Q2 2023 DIVIDEND, AND PENDING RETIREMENT OF CHIEF FINANCIAL OFFICER

Parex Resources Inc. has released its financial and operating results for the three-month period ended March 31, 2023, and has declared its second quarter 2023 regular dividend of 37.5 Canadian cents per share. Parex also announces the pending retirement of Ken Pinsky, chief financial officer and corporate secretary, who is electing to retire, effective Nov. 30, 2023.

All amounts herein are in U.S. dollars unless otherwise stated.

Key highlights:

• Generated first quarter 2023 funds flow provided by operations (FFO) of $162-million and FFO per share of $1.49;
• The first well of the 2023 big E exploration program, Chirimoya at VIM-43 (100-per-cent working interest), reached its target depth of roughly 17,500 feet; open-hole evaluation is currently under way;
• Drilled highly productive horizontal wells at both Cabrestero (100-per-cent WI) and LLA-34 (55-per-cent WI);
• Resumed full operations at Capachos (50-per-cent WI) on April 17, 2023, as previously announced, and anticipating the resumption of drilling activity at Arauca (50-per-cent WI) in Q2 2023;
• Quarter-to-date estimated average production is approximately 55,000 barrels of oil equivalent per day, and the company is on track to meet the lower end of fiscal 2023 production guidance of 57,000 to 63,000 boe/d, excluding potential production from big E exploration drilling;
• Declared Q2 2023 regular dividend of 37.5 Canadian cents per share or $1.50 (Canadian) per share annualized;
• Repurchased approximately 2.5 million shares year-to-date 2023 under the current normal course issuer bid (NCIB).

"In the Northern Llanos, I am proud of our team and community partners who have been instrumental in returning Capachos to full operations. Building off of that work, we are optimistic that we will be able to resume drilling at Arauca in the short term. Arauca has proven, multizone reservoirs, and is expected to be a long-term, high-capital efficiency growth area for us. Our ability to work collaboratively with communities continues to be a key differentiator for Parex, as we generate shared benefits in complex environments to unlock world-class oil and gas opportunities," commented Imad Mohsen, president and chief executive officer.

"We have spent the last two years building a strategic foundation for sustainable growth. Our emphasis on using proven technology is demonstrating its real value with drilling successes, such as the profitable horizontal wells drilled at both Cabrestero and LLA-34, as well as reaching target depth at our first well in this year's big E program. Technology is enabling access to new locations, improving drilling efficiency and increasing recovery factors. This, combined with our people and portfolio, makes Parex well positioned to deliver further success and drive long-term value for shareholders."

Pending retirement of chief financial officer and transition plan

Following a successful 35-year career, Mr. Pinsky is electing to retire, effective Nov. 30, 2023. The company has begun the process for selecting its next chief financial officer, and Mr. Pinsky will continue in his role to support the company during a transition period until his retirement date.

Mr. Pinsky joined Petro Andina, Parex's predecessor, in 2008 as vice-president, finance, and chief financial officer, and has been the chief financial officer of Parex since its inception. In that capacity, he has led the financial efforts to expand the company to its current status as the largest independent oil and gas producer in Colombia.

"As one of the co-founders of the company, Ken Pinsky has played an instrumental leadership role in helping establish Parex as a major player in Colombia with a long-standing track record of success. That journey started as we tipped into the global financial crisis under threat of a hostile bid -- and we successfully preserved a spinout that had only four exploratory blocks, a bit of working capital and no production. I had the true pleasure of working with Ken for more than a decade as we built Parex's reputation of excellence with regard to stewardship of capital. On behalf of the board of directors, organization and shareholders, I would like to thank Ken for his outstanding leadership and dedication to this company over the past 15 years. We extend our best wishes to Ken and his family as he moves towards retirement and closes out his long and successful career," commented Wayne Foo, chair of the board of directors.

"Since joining the company in 2021, I have seen the valuable contributions that Ken has made in positioning the company for lasting, sustainable growth. Ken's leadership and institutional knowledge has been instrumental in driving an industry-leading return of capital program that has delivered long-term value for shareholders. We want to thank Ken for his commitment and contribution to Parex as we wish him all the best in his next chapter," said Mr. Mohsen.

2023 corporate guidance update

Parex's Q1 2023 average production of 51,332 boe/d was below the company's guidance primarily due to the suspension of operations at Capachos (50-per-cent WI). Quarter-to-date estimated average production is approximately 55,000 boe/d.

On an annual basis, the shut-in at Capachos (50-per-cent WI) and the delayed drilling operations at Arauca (50-per-cent WI) are expected to have a combined impact on the company's average production of roughly 2,625 boe/d (Capachos: 1,625 boe/d; and Arauca: 1,000 boe/d). Incorporating the aforementioned social disruptions to date, Parex expects to be toward the lower end of its 2023 annual average production guidance range of 57,000 to 63,000 boe/d for fiscal 2023, excluding potential production from big E exploration drilling.

Return of capital update

Q2 2023 dividend

Parex's board of directors has approved a Q2 2023 regular quarterly dividend of 37.5 cents per share to be paid on June 30, 2023, to shareholders of record on June 15, 2023. The company first initiated a regular quarterly dividend at 12.5 cents per share in 2021.

This quarterly dividend payment to shareholders is designated as an eligible dividend for purposes of the Income Tax Act (Canada).

Active share buyback program under current normal course issuer bid

As at May 9, 2023, year-to-date Parex has repurchased approximately 2.5 million shares under its NCIB at an average price of $23.64 (Canadian) per share for total consideration of roughly $58-million (Canadian). Over and above the regular dividend, the company intends on continuing to utilize its current NCIB to return free funds flow to its shareholders.

ESG update

Parex intends to issue its ninth annual sustainability report, alongside its second integrated Task Force on Climate-Related Financial Disclosures (TCFD), in Q2 2023.

2023 annual general and special meeting of shareholders

Parex will hold its annual general and special meeting of shareholders on Thursday, May 11, 2023, at 9:30 a.m. MT (11:30 a.m. ET) in person and virtually. Participants looking to attend in person can at the Fourth Floor Conference Center, Eight Avenue Place, East Tower, 525, 8th Ave. Southwest, Calgary, Alta. Those wishing to participate can do so virtually.

Further information regarding the annual general and special meeting, including meeting materials, can be found at the Parex website under investors.

About Parex Resources Inc.

Parex is the largest independent oil and gas company in Colombia, focusing on sustainable, conventional production. The company's corporate headquarters is in Calgary, Canada, with an operating office in Bogota, Colombia. Parex is a member of the S&P/TSX Composite ESG Index, and its shares trade on the Toronto Stock Exchange under the symbol PXT.

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