Mr. Imad Mohsen reports

PAREX RESOURCES ANNOUNCES THIRD QUARTER RESULTS, ARAUCA DRILLING SUCCESS AND DECLARATION OF Q4 2023 DIVIDEND

Parex Resources Inc. has released its financial and operating results for the three-month period ended Sept. 30, 2023, and has declared its fourth quarter 2023 regular dividend of 37.5 Canadian cents per share.

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

"With our inaugural well in Arauca, I take pride in our team's remarkable achievement in drilling the deepest onshore well in Colombia's history. This milestone not only serves as a testament to our operational capability, but also solidifies Parex's leading position as an operator capable of confidently exploiting higher-productivity, deeper targets. In addition to Arauca, we are seeing a series of positive developments from exploitation and near-field exploration that are driving record quarterly production, which make us optimistic for the upcoming fourth quarter and the year ahead," commented Imad Mohsen, president and chief executive officer.

Key highlights:

• Generated third quarter 2023 funds flow provided by operations of $158-million and FFO per share of $1.49;
• Drilled the inaugural well on the Arauca block (50-per-cent working interest), Arauca-15, to a total depth of 22,350 feet; it is the deepest onshore well in Colombia's history and is expected to commence production following multizone testing;
• Spudded the Arauca-8 big E exploration well in late Q3 2023, which is at roughly 17,500 feet and expected to reach total depth in late fourth quarter 2023;
• Reached all-time production rates of over 15,000 bbl/d(8) of heavy crude oil from the Cabrestero block (100-per-cent WI), supported by successful exploration efforts and continued success from waterflood injection.
• Recently drilled a well at Cabrestero (100-per-cent WI) that discovered a new oil pool, which is expected to begin production imminently;
• Declared a Q4 2023 regular dividend of 37.5 Canadian cents per share or $1.50 (Canadian) per share annualized; current dividend yield is roughly 5.4 per cent;
• Repurchased 4.95 million shares year-to-date 2023, fulfilling approximately 5 per cent of the public float under the company's current normal course issuer bid;
• Delivering strong production growth; current rates are approximately 59,000 barrels of oil equivalent per day.

Corporate guidance

Parex's 2023 average production guidance of 54,000 to 57,000 boe/d and capital expenditure guidance of $450-million to $475-million remain unchanged. Building on strong current production, Parex expects its Q4 2023 average production to exceed 60,000 boe/d.

The company expects to release its 2024 formal guidance in January, 2024, alongside an updated three-year outlook.

Return of capital update

Q4 2023 dividend

Parex's board of directors has approved a Q4 2023 regular quarterly dividend of 37.5 Canadian cents per share to be paid on Dec. 29, 2023, to shareholders of record on Dec. 15, 2023. The company first initiated a regular quarterly dividend at 12.5 Canadian 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).

Q3 2023 results -- conference call and video webcast

Parex will host a conference call and video webcast to discuss the Q3 2023 results on Wednesday, Nov. 8, 2023, beginning at 9:30 a.m. MT (11:30 a.m. ET). To participate in the conference call or video webcast, please see the access information below.

Conference ID:  1335335

Participant toll-free dial-in number:  1-888-550-5584

Participant toll dial-in number:  1-646-960-0157

A webcast will be available.

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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