Mr. Imad Mohsen reports

PAREX RESOURCES ANNOUNCES FIRST QUARTER RESULTS, FIRST PRODUCTION AT ARAUCA, AND DECLARATION OF INCREASED Q2 2024 DIVIDEND

Parex Resources Inc. has released its financial and operating results for the three-month period ended March 31, 2024, and declared its increased Q2 2024 regular dividend of 38.5 cents per share. All amounts herein are in U.S. dollars unless otherwise stated.

"This year, we have made significant progress in executing our strategy and building operational momentum," commented Imad Mohsen, president and chief executive officer.

"The foundation is strong at our base Cabrestero and LLA-34 assets, where horizontal wells, waterflood and polymer application are yielding positive results. Beyond our base, the Arauca-8 well is now among the top oil-producing wells in Colombia and the recently signed Llanos Foothills agreement marks a pivotal moment for Parex, representing our expansion into the most prolific region of the country. Our team's focus on executing the 2024 plan remains steadfast; concurrently, we are laying the groundwork for the future, strategically positioning the company to realize its step-change potential and drive long-term shareholder value."

Key highlights:

• Generated Q1 2024 funds flow provided by operations (FFO) of $148-million and FFO per share) of $1.43;
• Successfully brought the Arauca-8(9) well on line in April, 2024, with stable rates averaging over 4,000 barrels per day (bbl/d) of light crude oil (gross) over the past 14 days;
• On track to deliver fiscal year (FY) 2024 average production guidance of 57,000 barrels of oil equivalent per day (boe/d) (midpoint); estimated average production for the second quarter to date of approximately 56,000 boe/d;
• High graded the exploration portfolio through the signing of definitive agreements to explore Colombia's high-potential Llanos Foothills trend, as previously announced April 11, 2024;
• Declared a Q2 2024 regular dividend of 38.5 Canadian cents per share or $1.54 (Canadian) per share annualized, representing a four-Canadian-cent-per-share increase on an annualized basis;
• Repurchased approximately 1.5 million shares year to date 2024 under the company's current normal course issuer bid (NCIB).

Q1 2024 results:

• Quarterly average oil and natural gas production was 53,338 boe/d, an increase of 4 per cent from Q1 2023 and a 7-per-cent decrease from Q4 2023; the primary driver of the decrease was the suspension of operations in the Northern Llanos, which has since returned to normal operations;
• Grew production per share by 9 per cent compared with Q1 2023, from increased production as well as the reduction of outstanding shares through NCIB (normal course issuer bid) programs;
• Realized net income of $60-million or 58 cents per share basic;
• Generated quarterly FFO of $148-million, an 8-per-cent decrease from Q1 2023, and FFO per share of $1.43, a 4-per-cent decrease from Q1 2023;
• Produced an operating netback of $43.55 per boe and an FFO netback of $31.32 per boe from an average Brent price of $81.87 per barrel (bbl);
• Incurred $85-million of capital expenditures, primarily from activities at Arauca, LLA-34 and LLA-122;
• Generated $63-million of free funds flow that was used for return of capital initiatives, as well as $30-million of bank debt repayment; working capital surplus was $56-million and cash was $61-million at quarter-end;
• Paid a 37.5-Canadian-cent-per-share regular quarterly dividend and repurchased 919,900 shares.

Parex Resources and Ecopetrol S.A. enter into definitive agreements to explore Colombia's high-potential Llanos Foothills trend

As previously announced April 11, 2024, Parex and its strategic partner have entered into definitive agreements to consolidate their position along the Llanos Foothills trend in alignment with Colombian government objectives to secure gas supply and support energy transition initiatives.

Parex views the agreements as having high graded its exploration portfolio, while maintaining the company's long-term capital allocation framework. This positions Parex for its next growth chapter, minimizing risk profile and maximizing reward potential as the company expands into Colombia's most prolific area.

Strong current production with FY 2024 guidance reconfirmed

The estimated average production for the second quarter to date is approximately 56,000 boe/d, reflecting strong base production from Cabrestero and LLA-34, initial Arauca production, and a successful restart of Capachos.

Parex's FY 2024 average production guidance of 54,000 to 60,000 boe/d (57,000 boe/d midpoint) and capital expenditure guidance of $390-million to $430-million ($410-million midpoint) remain unchanged.

Operational update

Cabrestero and LLA-34

The Cabrestero and LLA-34 blocks continue to demonstrate strong base production, producing approximately 44,000 barrels per day (bbl/d) of heavy crude oil (net) combined in Q1 2024. Although new producing well additions have slowed alongside lower capital investment, production rates have remained strong through a combination of positive waterflood response, successful exploitation and optimization activities, and, in the case of Cabrestero, initial positive results from the polymer injection pilot.

At Cabrestero, average production levels have been sustained at over 14,500 bbl/d of heavy crude oil (net) since October, 2023, despite no new wells being drilled on the block. This sustained production is demonstrating the low-decline profile of the asset when coupled with management's strategic focus on applying globally proven technology.

Northern Llanos -- Arauca update

Substantial advancements at the Arauca block have occurred in 2024. Significant drilling improvements have been realized, achieved through a blend of lessons learned, as well as technology application; the Arauca-81 well is drilling at a pacesetting rate, building upon the success of the Arauca-8 drill. Initial production has begun from the block, with the Arauca-8 well currently ranked among the top oil-producing wells in Colombia.

Arauca-8 well:

• The Arauca-8 well came on line in April, 2024, and produced roughly 3,400 bbl/d of light crude oil (gross) during the month.
• Over the last 14 days following wellbore cleanup, natural flow has been stable at rates over 4,000 bbl/d of light crude oil (gross), limited by gas facility constraints.
• Facility constraints are limiting the monetization of associated natural gas in the Gacheta and Une reservoirs; the company is currently working on short- and long-term facility and infrastructure solutions, including connecting to the bicentenario (OBC) pipeline.

Arauca-81 well:

• Arauca-81, which is the adjacent follow-up well to Arauca-8 that is a roughly 600-metre stepout, was spudded in early Q2 2024.

Arauca-15 well:

• The Arauca-15 sidetrack has reached total depth and is expected to come on line in Q2 2024.
• Once Arauca-15 is completed, the rig is expected to move to the Arauca-12 follow-up location.

Near-field exploration -- small E targets complementary to the big E exploration strategy

The company's 2024 near-field exploration plan is progressing, with the first well expected to spud in Q2 2024.

Big E exploration -- high-impact targets with transformational potential

Parex continues to drill its first high-potential well in the Colombian Foothills, Arantes, at LLA-122, which is targeting gas and condensate. This prospect is at roughly 10,000 feet, with a target depth of approximately 18,000 feet. Initial results are expected midyear 2024.

Parex continues to progress the predrill work for the Hidra well (name changed from Hydra) at VIM-1, which is roughly 15 kilometres from the company's La Belleza discovery. The well is expected to be spudded midyear 2024.

Return of capital update

Increased Q2 2024 dividend

Parex's board of directors has approved a Q2 2024 regular dividend of 38.5 Canadian cents per share, to be paid on June 17, 2024, to shareholders of record on June 10, 2024, representing a four-Canadian-cent-per-share increase on an annualized basis. 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).

Active share buyback program under current normal course issuer bid

As at May 7, 2024, Parex has repurchased approximately 1.5 million shares under its current NCIB at an average price of $22.24 (Canadian) per share, for total consideration of roughly $33-million (Canadian).

Q1 2024 results -- conference call and video webcast

Parex will host a conference call and video webcast to discuss its Q1 2024 results on Thursday, May 9, 2024, 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

2024 annual general and special meeting of shareholders

On Thursday, May 9, 2024, Parex will hold its annual general and special meeting of shareholders at 11 a.m. MT (1 p.m. ET), both in person and virtually. Participants may attend at the 4th Floor Conference Center, Eight Avenue Place, East Tower, 525, 8th Ave. SW, Calgary, Alta., and virtual participants can join on-line.

Additional information regarding the annual general and special meeting, including meeting materials, can be found on the company's 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 are in Calgary, Canada, with an operating office in Bogota, Colombia. Parex shares trade on the Toronto Stock Exchange under the symbol PXT.

We seek Safe Harbor.